Lenovo Reports Record Q3 Sales Driven by AI Strategy and PC Refresh

Lenovo Sets Q3 Sales Record As AI Boom, PC Refresh Fuel Growth

The company's third-quarter 2025 revenue came in at $18.79 billion, a record, while net income reached $693 million for 106 percent year-on-year growth. Lenovo's revenue grew double-digits across all business groups and geographies. Lenovo had a breakout third quarter, setting a record for infrastructure sales and extending its commanding lead of global PC sales while keeping profitability high, CEO Yuanqing Yang told investors last Thursday. "Last quarter, our group revenue grew double-digits year on year, for the third quarter in a row," he said. "Profit growth was even stronger as net income more than doubled year on year. Such a fantastic result is attributed to excellent performance of all core businesses." Headquartered in Beijing and Morrisville, N.C., Lenovo is capturing opportunities in AI, he said, including harnessing newer software models to drive higher efficiencies, on-device AI that the company introduced at its show in October, and edge AI applications. Yang said as new large language models (LLMs) are adopted, the democratization of AI is happening among users, even as deployment in the enterprise is accelerating, leading to wide overall growth. "DeepSeek, based on our assessment, has a very positive impact for Lenovo," he said. "It further proves that our hybrid AI has always been the right strategy and that we have been on the right path by deploying these small models for local devices ... We have already said AI will exist, not just in the cloud, but on prem and at the edge. DeepSeek proves this will only accelerate." As the Trump administration begins with threats to increase tariffs on products made in China, Yang said Lenovo has manufacturing in India, Japan, Hungary, Germany, Mexico, and the U.S. and one planned in Saudi Arabia. "Although we are still accessing this impact, overall I don't think it has any significant impact to our business and future performance," he told analysts. "Tariffs are not new to Lenovo. Many other countries have that kind of policy. So it's not a disadvantage but probably an advantage. We have already built a very strong, unique business model... We have a global manufacturing footprint." The company's third quarter 2025 revenue came in a record $18.79 billion, while net income reached $693 million for 106 percent year-on-year growth. Lenovo's revenue grew double-digits across all business groups and geographies. Lenovo's Intelligent Devices Group, which includes PCs and Motorola smartphones, rose 12 percent year over year to $13.8 billion. PC revenue was up 10 percent as the PC refresh cycle began taking form and Lenovo captured an industry-leading 24.3 percent of market share. This is the biggest market share lead that Lenovo has had in five years, the firm said during the earnings call. The company said the refresh was driven by Windows 10 end of life, gaming and premium workstation sales in commercial. The company expects the large installed base to drive sales at a premium to market, especially in gaming. "In our dialogue with customers this (Windows 10 end of life) is getting stronger," said Luca Rossi, president of Lenovo's Intelligent Devices Group. "We expect the second half of calendar 2025 to see an acceleration of this vector, of this market growth. In AI PC, no matter which definition you take, we are the number one globally and we are confident that we will keep this position with innovation." Just like in November, PC sales to China were strong, with Lenovo's five-feature AI PC exceeding expectations. Lenovo expects AI PCs to make up 80 percent of the PC market by 2027, as hybrid AI is creating growth across those products. Additionally, it is driving a smartphone refresh. Smartphone revenue was up 21 percent year on year with significant gains in Asian-Pacific markets, where sales surged 155 percent as well as growth of 28 percent in EMEA, Yang said. Lenovo plans for AI include creating AI products with more powerful computing and installing more efficient models inside devices. New form-factor innovations - such as a consumer version of its rollable screen laptop which debuted at CES 2025 - and enhancing multi-device connectivity, that bridge the gap between a cell phone and PC for a unified work experience. Lenovo's Infrastructure Solutions Group hit a record high of $3.9 billion in sales for 59 percent growth year on year. Yang said Lenovo's sales with cloud solution providers hit "hypergrowth," leaping 94 percent year on year, while enterprise and small business grew 7 percent. "We are definitely very confident. You will not only see it grow strongly but also improve its profitability. This is the strategy we have set up for this business for many years," Yang told investors during the question-and-answer period. "When we purchased IBM's server business 10 years ago, it was just focused on enterprise business. There was no CSP or hyperscaler business at all. But we realized that CSP would change the landscape of the industry." As Lenovo annouced earlier this year, the company said its plans to buy Israeli storage vendor Infinidat. That deal remains on track and is expected to win regulatory approval in the second half of this year. Customers across vertical industries outside of supercomputing selected Lenovo's liquid-cooled Neptune servers for the potential 4 percent energy savings that comes with the rapid heat removal from those devices. "It's now being applied across various industries from automotive to electronics finance and natural resources," said CFO Wai Ming Wong.

Lenovo Reports 20% Revenue Growth Thanks to AI Strategy

The company's net income more than doubled year-on-year to $693 million. Lenovo, the Chinese multinational company, announced a 20% jump in its FY25 third-quarter revenue on Thursday, attributing it to its 'hybrid-AI strategy'. The company's revenue stood at $18.8 billion, up from $15.7 billion the year before. Net income more than doubled year-on-year to $693 million. "Lenovo's revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses," said Yuanqing Yang, CEO of Lenovo. "AI technology, with higher efficiency and lower costs, is accelerating the maturation of personal AI, particularly on-device AI and edge AI. It has also accelerated enterprise adoption of AI. This aligns perfectly with the direction of hybrid AI we've been driving and leading," Yang added. Revenue from the company's Infrastructure Solutions Group (ISG) increased 60% year-on-year to $3.9 billion. "Revenue from ISG's AI server business and industry-leading Lenovo Neptune liquid cooling solutions made strong contributions in the quarter, with AI server revenue growing steadily," said the company. Last October, Lenovo unveiled its sixth generation of liquid cooling infrastructure, the ThinkSystem N1380 Neptune, which is designed to optimise data centre performance. Lenovo claims it reduced data centre power consumption by up to 40%. Lenovo is also betting big on AI infrastructure with custom-fit data centre solutions. Scott Tease, VP and GM of AI and High-Performance Computing (HPC) at Lenovo, interacting with AIM at the sidelines of Tech World in Seattle last year, said, "We're building exascale systems designed to be accessible to any customer, regardless of their data centre setup or size." He also added that with Lenovo's solutions, there's no need to rebuild data centres or reinforce floors, as the equipment can fit through a standard 2-meter door or freight elevator. In contrast, competing solutions involve 4,000-kilogram racks that are 2.5 meters wide, exceeding typical floor support capabilities. The company also offers a full-stack AI platform called Hybrid AI, which is built in collaboration with NVIDIA and helps enterprises and organisations deploy AI-enabled solutions. Lenovo also observed a record revenue this quarter from its Solutions and Services Group (SSG), which builds the company's Hybrid AI capabilities. "The AI solution business is gaining traction and building lighthouse cases for global customers, including delivering an enterprise AI agent platform," the company said. Moreover, its research and development (R&D) expenses increased by 14% year-on-year. The company is a leading OEM for AI-enabled PCs with Microsoft Copilot Plus. Last December, Lenovo unveiled its new ThinkPad T14s Gen 6, powered by AMD Ryzen AI 7 PRO 360 processor. Lenovo said in its release that the device delivers 50 TOPS (trillions of operations per second) of AI processing power, enabling advanced data analysis, real-time machine learning, and enhanced productivity for the modern workforce. The company also developed a suite of AI features called Moto AI, which is aimed towards the smartphones that its subsidiary Motorola develops. According to rumours, Lenovo is also set to announce a ThinkBook Flip AI PC, which showcases a rollable and foldable OLED display.

Lenovo Q3 Earnings: 20% Revenue Jump, AI PCs and Smartphones Power Market Expansion - Lenovo Gr (OTC:LNVGY)

On Thursday, Chinese PC company Lenovo Group Ltd (OTC: LNVGY) reported fiscal third-quarter revenue growth of 20% year-on-year to $18.796 billion, beating the analyst consensus estimate of $15.58 billion. This marked the highest quarterly sales in the past three years and the second highest in the Group's history. All three business groups achieved double-digit year-over-year revenue growth for the third consecutive quarter. Also Read: Baidu's AI Cloud, Robotaxi Growth And Accelerated Buybacks Position It For Strong 2025: Analyst The quarter's results were driven by the Group's focused hybrid AI strategy, the turnaround of the Infrastructure Solutions Group, and double-digit growth for both the Intelligent Devices Group and Solutions and Services Group. The Solutions and Services Group (SSG) posted revenue growth of 12% Y/Y to $2.26 billion, a firm operating margin of 20.4%. The segment accounted for 31% of the total operating profit of the three business groups. Managed services and Project & Solution Services revenue experienced double-digit growth. The Infrastructure Solutions Group (ISG) revenue grew 59% Y/Y to $3.94 billion, driven by solid cloud momentum and strengthening enterprise business. The segment operating margin loss improved to 0.0% versus (1.5)% Y/Y. Intelligent Devices Group (IDG) increased 12% to $13.78 billion, driven by substantial market share gain in PC and smartphone premium sales. It marked the company's highest PC market share in 5 years. The PC business expanded its market leadership to almost 24.3% market share. Hybrid AI created growth opportunities for the device market, with the PC market entering a new refresh cycle and driving the smartphone market refresh cycle. AI PC can represent ~80% of the PC industry landscape by 2027. The segment operating margin stood flat at 7.3%. Motorola's market share is at a 5-year high, with hypergrowth in Asia Pacific and EMEA. The non-PC revenue mix during the quarter stood at over 46%. Gross margin declined to 15.7% versus 16.5% a year ago due to a higher sales contribution from ISG's cloud business, which has a lower profitability profile. The expenses-to-revenue ratio was 12.0% vs. 12.6% the prior year. Net income grew by 106% Y/Y to $693 million. EPS per ADR rose to $0.0535 from $0.0264 a year ago. As of December 31, 2024, cash and equivalents stood at $3.93 billion. Price Action: LNVGY stock is down by 2.77% to $31.10 premarket at the last check on Thursday. Also Read: Accenture and Infroneer Launch AI-Powered JV to Transform Japan's Infrastructure Photo by Robert Way via Shutterstock LNVGYLenovo Group Ltd$31.09-2.77%WatchlistOverviewLNVGFLenovo Group Ltd$1.17-25.8%Market News and Data brought to you by Benzinga APIs

Lenovo targets $10B CSP business with sustainable profitability backed by AI innovations (OTCMKTS:LNVGF)

Lenovo reported a significant financial performance in Q3 2025, driven by a strong focus on AI, operational excellence, and strategic foresight. CEO Yuanqing Yang highlighted that the group revenue grew double digits year-on-year for three Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

Lenovo Group Limited (LNVGY) Q3 2025 Earnings Call Transcript

Lenovo Group Limited (OTCPK:LNVGY) Q3 2025 Earnings Conference Call February 20, 2025 2:00 AM ET Company Participants Jenny Lai - Vice President of Investor Relations Yuanqing Yang - Chairman and Chief Executive Officer Wai Ming Wong - EVP and Chief Financial Officer Ken Wong - EVP and President of Solutions and Services Group Luca Rossi - EVP and President of Intelligent Devices Group Ashley Gorakhpurwalla - EVP and President of Infrastructure Solutions Group Sergio Buniac - Senior VP of Mobile Business Group and President of Motorola Conference Call Participants Jenny Lai Good morning, good afternoon and good evening. Welcome to Lenovo's Investor Earnings Webcast. This is Jenny Lai, Vice President of Investor Relations at Lenovo. Thanks, everyone, for joining us. Before we start, let me introduce our management team joining the call today. Yuanqing Yang, Lenovo's Chairman and CEO; Wai Ming Wong, Group CFO; Luca Rossi, President of Intelligent Devices Group; Ashley Gorakhpurwalla, President of Infrastructure Solutions Group; Ken Wong, President of Solutions and Services Group; and Sergio Buniac, Senior Vice President of Mobile Business Group and President of Motorola. We will begin with earnings presentations. And after that, we will open the call for questions. Now, let me turn it over to Yuanqing. Yuanqing, please. Yuanqing Yang Hello, everyone and thank you for joining us today. Last quarter, thanks to our strategic foresight, continuous innovation, and operational excellence, Lenovo delivered a strong growth across all core businesses, driving significant increase of overall global revenue and profit. We are also pleased that the adoption and application of AI is accelerating, driven by innovative technologies that are more efficient and at a lower cost, creating huge growth opportunities. We continue to lead in Personal AI with our AI device innovations, while proactively leveraging hybrid infrastructure and our Hybrid AI Advantage to build enterprise AI, so as to further drive sustainable growth and profit improvement.

Lenovo's Profit Beats Estimates as AI Fuels PC Recovery Hopes

Lenovo Group Ltd.'s quarterly profit beat projections, highlighting how AI infrastructure spending is helping pull the global PC market out of a years-long funk. Net income increased more than doubled to $692.7 million in the December quarter. That compares with an average estimate of $365 million. Revenue rose 20% to $18.8 billion, also beating projections.