Friday, 15 August 2025
28 C
Singapore
28.9 C
Thailand
17.9 C
Indonesia
27.3 C
Philippines

Lenovo posts record Q1 results with strong growth across all business units

Lenovo reports record Q1 revenue and profit, driven by hybrid AI strategy, innovation investment, and strong growth across all business units.

Lenovo Group has reported a robust start to the fiscal year 2025/26, achieving double-digit growth in both revenue and profit. The results were driven by its hybrid AI strategy, increased investment in innovation, and operational efficiency across global markets.

Strong financial performance and market share gains

For the quarter ended 30 June, Lenovo’s revenue rose 22% year-on-year to US$18.83 billion, while net income surged 108% to US$505 million. On a non-HKFRS basis, which excludes certain non-cash items, net income increased 22% to US$389 million. Basic earnings per share climbed to 4.12 US cents.

All major business segments posted double-digit revenue growth. The PC business delivered its highest year-on-year revenue growth in 15 quarters and achieved a record global market share of 24.6%. Non-PC revenue accounted for 47% of total revenue, up slightly from a year ago. Growth was consistent across all sales regions.

Chairman and CEO Yuanqing Yang said the results demonstrated the company’s resilience despite tariff volatility and geopolitical challenges. “Looking ahead, we will continue to firmly execute our hybrid AI strategy towards the vision of Smarter AI for all, relentlessly drive innovation in personal AI and enterprise AI products and solutions and consistently strengthen our operational competitiveness so that we can realise sustainable growth and profitability improvement,” he said.

Business unit highlights

The Intelligent Devices Group (IDG) recorded revenue of US$13.5 billion, up nearly 18% year-on-year. PCs and smart devices grew 19%, supported by strong demand across all geographies and high-margin segments, delivering an operating profit above 8%. AI PCs accounted for more than 30% of total shipments, with Lenovo holding a 31% global share in the Windows AI PC segment. Smartphone revenue rose over 14% to US$2.2 billion, with Motorola achieving the top position in the global foldable phone market outside China.

The Infrastructure Solutions Group (ISG) posted a 36% increase in revenue to US$4.3 billion, driven by its dual strategy targeting cloud service providers and enterprise/SMB customers. AI infrastructure revenue more than doubled, and liquid cooling solutions saw 30% growth. While short-term profitability was affected by investment, ISG aims to expand market reach, enhance its SMB business model, and continue AI-focused innovation.

The Solutions and Services Group (SSG) reported its 17th consecutive quarter of year-on-year growth, with revenue rising 20% to US$2.3 billion and an operating margin exceeding 22%. Managed services and “as-a-Service” offerings performed strongly, with TruScale Infrastructure-as-a-Service signings achieving triple-digit growth.

ESG achievements and global recognition

Lenovo’s latest Environmental, Social and Governance Report highlighted progress towards its 2030 emissions reduction goals and its long-term target of achieving net-zero greenhouse gas emissions by 2050. The company continues to integrate recycled materials into its products and offer sustainability services to customers. Its efforts have earned accolades from EcoVadis, MSCI, CDP, and the Hong Kong Institute of Certified Public Accountants.

The company was ranked eighth in Gartner’s Top 25 Global Supply Chain and climbed 52 places on the Fortune Global 500 list to 196th overall, its highest ranking in the technology sector to date.

Hot this week

Changi Airport opens Star Wars pop-up library at Terminal 3

Changi Airport’s Star Wars pop-up library offers over 2,000 titles, themed activities, and a robotic lending system until 24 January 2026.

ASUS ROG unveils Strix Helios II chassis in Singapore

ASUS ROG has launched the Strix Helios II case in Singapore, a high-performance mid-tower designed for gamers and DIY PC builders.

Samsung launches first Micro RGB TV with enhanced colour accuracy

Samsung debuts its first Micro RGB TV, offering 100% colour reproduction, advanced gaming features, and a lower price than MicroLED.

Global Anti-Scam Summit Asia 2025 to convene in Singapore with expanded regional coalition

Global Anti-Scam Summit Asia 2025 will gather over 1,200 leaders in Singapore to strengthen cross-border action against scams.

HPE introduces AI-powered security and data protection innovations at Black Hat USA 2025

HPE reveals AI-driven networking and data protection solutions at Black Hat USA 2025, featuring CrowdStrike partnership and secure storage upgrades.

Okta report finds automation and AI agents leading workplace transformation

Okta’s AI at Work 2025 report finds automation and AI agents leading workplace change, but governance and security remain challenges.

Docusign unveils AI-powered contract tools at Singapore Momentum event

Docusign launches AI-powered agreement tools at Momentum Singapore to speed up contracts and strengthen compliance in Asia-Pacific.

Fortnite set to return to iOS in Australia after court ruling against Apple and Google

Fortnite will return to iOS in Australia after a court ruled Apple and Google abused their app store dominance to limit competition.

Tenable claims GPT-5 jailbreak within a day of launch

Tenable bypasses GPT-5 safety protocols within 24 hours of launch, highlighting urgent need for stronger AI oversight and governance.

Related Articles

Popular Categories