HONG KONG (Mar 2025) — Lenovo Group Limited (HKSE: 992) (ADR: LNVGY) reported a strong third quarter for fiscal year 2024/25, posting a 20% year-on-year revenue increase to $18.8 billion. Net income more than doubled to $693 million, supported by a one-time tax credit of $282 million. The company’s continued focus on artificial intelligence (AI) and hybrid computing drove its momentum across all core business units, with non-PC revenue now accounting for 46% of the total mix.
The Intelligent Devices Group (IDG) and Solutions and Services Group (SSG) posted double-digit revenue growth, while the Infrastructure Solutions Group (ISG) achieved break-even status, propelled by demand for AI servers and cloud services.
AI-Driven Innovation and Market Expansion
Lenovo increased research and development (R&D) spending by nearly 14% year-on-year to $621 million, with a major focus on AI. At CES 2025, the company showcased groundbreaking innovations, including the world’s first rollable AI laptop, a versatile handheld gaming device supporting both Windows and Steam OS, and Moto AI. These achievements earned Lenovo 185 industry awards.
The company’s AI strategy spans personal devices and enterprise solutions. It aims to drive AI advancements in computing efficiency, edge processing, and hybrid infrastructure. Lenovo’s Hybrid AI Advantage supports businesses in optimizing AI deployment and return on investment.
Business Unit Highlights
Intelligent Devices Group (IDG)
- Revenue grew 12% year-on-year to $13.8 billion.
- PC market share expanded to 24.3%, maintaining industry-leading profitability.
- Smartphone sales surged, particularly in Asia-Pacific and EMEA.
- Future plans include deeper AI integration, multi-device connectivity, and ecosystem expansion.
Infrastructure Solutions Group (ISG)
- Revenue jumped nearly 60% year-on-year to $3.9 billion.
- The Cloud Services Provider (CSP) segment experienced hypergrowth.
- AI server revenue climbed, driven by Lenovo Neptune liquid cooling expansion.
- Demand for hybrid cloud infrastructure is expected to fuel sustained profitability.
Solutions and Services Group (SSG)
- Achieved 15 consecutive quarters of double-digit growth, reaching $2.3 billion in revenue.
- AI-powered services boosted Lenovo’s hardware offerings.
- Non-hardware services revenue grew to nearly 60% of the business mix.
- The AI solutions unit gained traction with global enterprise AI platform deployments.
Global Strategy and Sustainability
Looking ahead, Lenovo plans to strengthen its hybrid AI leadership while expanding its global footprint. The company is investing in manufacturing in the Middle East through Alat and reinforcing key partnerships with Formula 1® and FIFA.
Lenovo also continues to advance its environmental, social, and governance (ESG) initiatives. It was named FIFA’s official technology partner for the 2026 FIFA World Cup™ and the 2027 FIFA Women’s World Cup™. Additionally, it earned top sustainability and governance accolades, including a Platinum rating from EcoVadis, placing it among the top 1% of companies globally.
“With strong growth across all core businesses, particularly in AI and infrastructure, Lenovo is well-positioned for the future,” said Chairman and CEO Yuanqing Yang. “AI is driving efficiency, lowering costs, and accelerating adoption across industries. Our focus on hybrid AI and continued innovation will sustain our growth and profitability.”
Lenovo remains optimistic about its long-term strategy, leveraging its resilient supply chain and AI-driven transformation to navigate macroeconomic shifts while delivering sustained financial performance.
