Lenovo Group has reported a robust financial performance for the fiscal year ending 31 March 2025, with revenue rising by 21% year-on-year to US$69.1 billion, the second-highest in the company’s history. Net income increased by 36% to US$1.4 billion on a non-HKFRS basis. The company’s growing portfolio outside its traditional PC segment now accounts for 47% of total revenue, up nearly five points from the previous year. All major business units and geographic markets posted double-digit growth, underscoring the Group’s global reach and diversified business model.
Lenovo credited its performance to a consistent long-term strategy, a resilient global operations model, and a strong supply chain. Its operational setup includes more than 30 manufacturing sites across 11 markets, allowing the company to remain agile in changing market conditions.
Chairman and CEO Yuanqing Yang remarked, “This has been one of our best years yet, even in the face of significant macroeconomic uncertainty. We achieved strong top-line growth with all our business groups and sales geographies growing by double digits, and our bottom-line increased even faster.” He added that the Group’s focus on hybrid AI has helped drive progress in both consumer and enterprise applications, setting the stage for future growth.
The company has also declared a final dividend of 3.9 US cents or 30.5 HK cents per share for the fiscal year.
AI leadership and innovation drive device business
The Intelligent Devices Group (IDG) remained the largest contributor, recording a 13% year-on-year revenue increase to US$50.5 billion and achieving an operating margin above 7%. Lenovo continued to lead the global PC market, widening the gap with the second-largest player by nearly one percentage point. In the AI PC category, Lenovo now ranks first worldwide in the Windows segment, having exceeded its volume target.
Smartphone revenue rose 27% year-on-year, reaching its highest point since the Motorola Mobility acquisition. Growth was particularly strong in the Asia Pacific and EMEA regions, complementing its existing market presence in Latin America and North America. Tablet sales also saw double-digit volume growth.
Lenovo introduced several new form factors throughout the year, including the rollable display ThinkBook Plus Gen 6, the Legion Go S handheld gaming console, and premium AI-powered devices such as the ThinkPad and Yoga Aura Editions. Motorola’s foldable devices, led by the motorola razr with moto AI integration, also saw strong momentum.
Looking ahead, IDG plans to enhance its AI-driven ecosystem with cross-device and cross-platform experiences, while expanding the AI super agent portfolio introduced at Lenovo’s Tech World event in Shanghai.
Infrastructure and services segments show rapid expansion
The Infrastructure Solutions Group (ISG) delivered exceptional results, with revenue growing 63% year-on-year to US$14.5 billion. ISG returned to profitability in the second half of the year, supported by the expansion of its Cloud Service Provider business and 20% growth in its Enterprise and SMB segment. Its AI server offerings saw sharp demand, supported by Lenovo’s Neptune liquid cooling technology.
Meanwhile, the Solutions and Services Group (SSG) continued to act as Lenovo’s high-margin growth engine. SSG achieved US$8.5 billion in revenue, up 13% year-on-year, and posted an operating margin of 21.1%. Nearly 60% of this came from solutions and ‘as-a-service’ offerings, with AI services driving much of the growth. SSG is expected to further develop its Hybrid AI Advantage framework and expand its enterprise solution offerings.
Focus on ESG and responsible AI development
Lenovo made continued progress in its ESG efforts, staying on track with its 2030 emissions targets aligned to the Science Based Targets initiative. It received multiple global accolades, including the Gold Award for sustainability from the HKICPA and a Platinum Medal from EcoVadis, placing it in the top 1% of rated companies globally.
The company also earned AAA status in MSCI’s ESG ratings and A-list recognition from CDP for its climate change and water initiatives. Lenovo’s commitment to inclusion was recognised with a “Best Workplace for Disability Inclusion” title in the US for the fourth consecutive year, along with new honours in Brazil and the UK.
Lenovo reaffirmed its principles around ethical and responsible AI development, supporting initiatives like the European Commission’s AI Pact. Further updates on the Group’s ESG initiatives will be detailed in its annual ESG report, scheduled for release at the end of June.
