Lenovo Group Limited has reported positive results for Q2 FY24/25, highlighting its focus on hybrid AI, innovation, and operational improvements. The company announced a 24% year-on-year increase in revenue, reaching $17.9 billion, and a 48% rise in net income, totaling $404 million. The non-PC business contributed 46% of total revenue, reflecting a steady diversification strategy.
“Last quarter, we achieved strong, sustainable, and accelerated growth, marking another period of revenue expansion across all business groups,” said Yuanqing Yang, chair and CEO of Lenovo. “This significant momentum is driven by our clear strategy, innovation investment, operational excellence, and global presence.”
The Intelligent Devices Group (IDG), responsible for personal computers, smartphones, and tablets, led the performance with $13.5 billion in revenue — a 17% increase year-on-year. AI PCs, first launched in China, gained traction, making up a double-digit share of notebook shipments in the region. Smartphone and tablet segments also saw double-digit growth, with strong demand in North America and Asia Pacific.
The Infrastructure Solutions Group (ISG) set a quarterly revenue record of $3.3 billion, marking a 65% year-on-year increase. Cloud services and enterprise solutions were key drivers, while its liquid-cooled servers gained traction due to efficiency demands from AI workloads.
Investments
The Solutions and Services Group (SSG) extended its streak of double-digit growth, with $2.2 billion in revenue and a 20% operating margin. Hybrid cloud and sustainability-focused offerings were among the highlights, contributing to nearly 60% of its revenue.
Lenovo’s investments in research and development reached $548 million, up 10% from the previous year. This focus supports ongoing innovation, particularly in hybrid AI, which Yang described as “key to strengthening market differentiation and leadership.”
The company is optimistic about continued growth, with plans to expand its AI device portfolio and enhance hybrid AI infrastructure. An interim dividend of 8.5 HK cents per share was also declared.
Recent achievements included ranking first on Fast Company’s Innovators list and receiving recognition for sustainability and diversity efforts.