The Chinese PC maker posted record quarterly revenue of $26.9 billion, far exceeding analyst expectations of $22.3 billion
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Lenovo reported first-quarter results on Thursday showing adjusted net income of $1.1 billion, up 176% from a year earlier, as demand for AI computers and servers drove the company’s revenue to an all-time quarterly high.
For the quarter ended June 30, Lenovo’s total revenue climbed to $26.9 billion, a 43% year-on-year increase that left the analyst consensus of $22.3 billion well behind, according to Brecorder. Adjusted net income crossed $1 billion for the first time, the company said.
AI-related revenue grew 60% year-on-year to $9.3 billion, accounting for 35% of total group revenue, the company said.
The company’s Infrastructure Solutions Group, which covers servers and data center hardware, nearly doubled in revenue, rising 98% year-on-year to $8.5 billion. Operating profit for that unit reached $777 million, with operating margin climbing to 9.1%. Lenovo said the AI server pipeline expanded to $54 billion, up 157% from the prior quarter.
The Intelligent Devices Group, which includes PCs and smartphones, posted revenue of $17.1 billion, up 27% year-on-year. Lenovo said its global PC market share reached 24.2%, extending its lead over the second-place competitor to more than five percentage points. AI PC market share rose to 25.1%.
The Solutions and Services Group posted revenue of $2.9 billion, up 28% year-on-year, with operating margin reaching 24.2%. AI services revenue in that segment grew at a triple-digit rate year-on-year, the company said.
On a net basis, shareholders absorbed a $609 million loss for the quarter, reversing the $505 million profit recorded in the same period a year ago, according to Brecorder. Analysts had on average projected a $589 million loss.
Chairman and CEO Yuanqing Yang attributed the results to the company’s strategy spanning personal and enterprise AI. “Building on our leadership in PCs and Smart Devices, we are proud of our rapid emergence as a global leader in AI and Infrastructure,” Yang said in a statement.
During the quarter, Lenovo also expanded its server manufacturing facility in North Carolina to meet rising demand from large cloud customers and enterprise buyers, the company said.
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