AI boost propels Lenovo to record-breaking $20.5b revenue

Lenovo Group Ltd delivered historic results for the quarter ending in September, with revenue reaching an all-time high of $20.5 billion, up 15 percent year-on-year, on the back of strong performance in artificial intelligence.

Adjusted net income also grew 25 percent year-on-year to $512 million.

Yang Yuanqing, chairman and CEO of Lenovo, said, "Capitalizing on the AI democratization trend, and thanks to our clear strategy, operational excellence and relentless innovation, Lenovo delivered another quarter of record performance, while making important progress in both personal AI and enterprise AI businesses."

"We will continue to leverage our unique global and local model to navigate uncertainties and capture the tremendous hybrid AI opportunities, and in doing so not only deliver sustainable long-term returns to our shareholders, but also make AI truly personalized for every individual and every enterprise," Yang said.

Lenovo delivered double-digit year-on-year revenue growth across all main business groups and sales geographies. The AI-related revenue mix increased by 13 percentage points year-on-year, accounting for 30 percent of the company's total revenue this quarter.

The growth was driven by high-double-digit revenue growth in AI servers and triple-digit revenue growth in AI PCs, AI smartphones and AI services, Lenovo added.

Lenovo noted that the shift in AI infrastructure from initial build-out to a more human- and enterprise-centric phase is underway, as large language models become commoditized and user priorities shift toward personalization and private domain solutions.