Lenovo Revenues Jump 20 Percent to $18.8 Billion

Lenovo reported that it earned a net income of $430 million on revenues of $18.8 billion in the quarter ending December 31, 2024. Those figures both represent gains of 20 percent, year-over-year (YOY).

“Lenovo’s revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses,” Lenovo chairman and CEO Yuanqing Yang said. “AI technology, with higher efficiency and lower costs, is accelerating the maturation of personal AI, particularly on-device AI and edge AI. It has also accelerated enterprise adoption of AI. This aligns perfectly with the direction of hybrid AI we’ve been driving and leading. Looking ahead, our continued investment in innovation, combined with our exceptional and resilient global operations, positions us well for sustained and profitable growth in the future.”

Lenovo’s Intelligence Devices Group (IDG) is responsible for PC and smartphone sales, and it earned an operating profit of $1 billion (up 9.7 percent YOY) on revenues of $13.8 billion, up 11.5 percent YOY. Lenovo reported that AI PCs represented 15 percent of total notebook sales, and Lenovo expects AI PCs to “dominate global shipments by late 2025”; it says that over 80 percent of all PCs sold by 2027 will be AI PCs. Overall revenues from PCs in the quarter were up 10 percent YOY, Lenovo said, and its worldwide market share is now an industry-best 24.3 percent. Gaming PCs were a high point, and Lenovo claimed that commercial PC sales “benefitted from the Windows 11 refresh,” driving “recovery in the commercial segment.”

Lenovo’s Infrastructure Solutions Group (ISG) business unit–datacenter and AI servers–delivered $3.9 billion in revenues, up 59.2 percent YOY, and it was profitable for the first time in a year. And its Solutions & Services Group (SSG) business unit saw revenues grow 11.7 percent to $2.25 billion in revenues, a record. Lenovo credited the success of its “AI-powered portfolio” for that milestone.