BRIEF: Lenovo’s quarterly profit doubles as revenue hits record

PC giant Lenovo Group Ltd. (0992.HK) announcedon Thursday that its profit rose 107.8% year-on-year to $510 million for its first fiscal quarter through June, while its non-HKFRS profit rose by a smaller 21.6% to $390 million.

The company’s revenue rose 21.9% during the quarter to $18.83 billion, marking a record for its first fiscal quarter and surpassing the previous peak set during the pandemic. Its gross profit increased 8.4% to $2.77 billion, while its gross margin fell by 1.9 percentage points to 14.7%.

All three of the company’s business units — infrastructure solutions, solutions and services, and intelligent devices — recorded strong double-digit year-on-year revenue growth. Within the intelligent devices group, which covers PCs, tablets, and other smart devices, the company achieved its fastest year-on-year revenue growth in 15 quarters.

Revenue and operating profit for intelligent devices rose 18% and 15%, respectively, mainly driven by increased penetration of AI PCs and rapid growth in high-end product sales. The company achieved record global PC market share, while its smartphone business posted double-digit year-on-year revenue growth for the seventh consecutive quarter.

Looking ahead, Lenovo said it will continue executing its AI development strategy. With increased investment in hybrid AI, it has made substantial progress in both consumer and enterprise AI products, expressing strong confidence in its strategy of evolving “from 3S to AI Twin.”

Lenovo’s stock opened flat on Thursday and closed at HK$11.11 by the midday break, down 3.56%.

By Lee Shih Ta

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