Lenovo Group Registers Strong Financial Growth in Fiscal Year 2024/25
Lenovo Group Limited, a prominent global technology company, has recently announced its financial results for the fourth quarter and the entire fiscal year of 2024/25. The company reported an impressive 21% increase in revenue compared to the previous year, reaching a total of $69.1 billion. This ranks as the second-highest annual revenue in the company’s history. The net income also saw a substantial rise of 36%, amounting to $1.4 billion, based on non-Hong Kong Financial Reporting Standards (non-HKFRS).
The company’s diversified business strategy has proven successful, with non-PC revenue growing significantly, now comprising 47% of total revenue—a near five-point increase over the previous year. Lenovo’s business groups have all met their strategic and financial objectives, with every sales region experiencing double-digit revenue growth. This underscores Lenovo’s robust and resilient global operations.
The driving force behind Lenovo’s financial success lies in its strategic focus on executing a well-defined business plan, supported by an efficient global operations model. The company has built a strong manufacturing presence with over 30 sites worldwide, either owned or outsourced, allowing Lenovo to adapt swiftly to market changes and uncertainties.
Investment in Innovation
Lenovo has consistently prioritized innovation, with research and development (R&D) expenses increasing by 13% year-on-year to $2.3 billion. This investment has led to several strategic advancements, particularly in artificial intelligence (AI). Notably, Lenovo has introduced AI-powered PCs, securing the top global position in the Windows AI PC category. The company also launched the first foldable phone with Moto AI and witnessed remarkable growth in its AI server business. Furthermore, Lenovo has developed core solutions and services under the Lenovo Hybrid AI Advantage, recently unveiling its first personal and enterprise AI super agents at the Tech World event in Shanghai.
Looking ahead, Lenovo remains optimistic about maintaining its market competitiveness through continued focus on innovation and hybrid AI, supported by a balanced global business and a flexible, resilient supply chain.
Financial Highlights and Performance Analysis
For the fourth quarter of the fiscal year 2024/25, Lenovo’s revenue increased by 23% year-on-year to $17 billion, with all business segments experiencing double-digit growth. The net income also rose by 25% on a non-HKFRS basis, reaching $278 million.
Lenovo’s Intelligent Devices Group (IDG) further solidified its leadership in the PC market, widening the gap with its nearest competitor. The smartphone segment also outpaced market growth by 12 points, achieving the fourth global position in revenue rankings outside China. The Infrastructure Solutions Group recorded exceptional growth, with revenue soaring by over 60% year-on-year. The Solutions and Services Group reported an 18% revenue increase, achieving a record operating margin of 27%.
Full Year Performance and Strategic Initiatives
Intelligent Devices Group (IDG): Strengthening Market Leadership
The IDG reported a 13% increase in revenue year-on-year, reaching $50.5 billion, with an operating margin consistently exceeding 7%. Lenovo’s PCs expanded their market leadership, maintaining industry-leading profitability. The AI PCs exceeded volume targets, establishing Lenovo as the global leader in the Windows AI PC category. Smartphone revenue achieved its highest point since the acquisition of Motorola Mobility, with hypergrowth of 27% year-on-year, driven by robust performance in Asia Pacific and EMEA markets.
The tablet business also achieved double-digit sales volume growth. Throughout the fiscal year, Lenovo launched innovative products such as the ThinkBook Plus Gen 6 with a rollable display, the Legion Go S handheld gaming console, and the premium ThinkPad and Yoga Aura Editions. Motorola continued its leadership in foldable phones with the latest Motorola Razr, enhanced with Moto AI capabilities.
Looking forward, IDG aims to build an AI-driven applications ecosystem for seamless cross-device experiences and further develop AI super agents.
Infrastructure Solutions Group (ISG): Achieving Hypergrowth
The ISG experienced a remarkable 63% increase in revenue year-on-year, reaching a record $14.5 billion. The operating margin improved significantly, enabling the group to break even in the fiscal year’s second half. The Cloud Services Provider (CSP) business achieved self-sustaining profitability, while the Enterprise and SMB (E/SMB) segment recorded a 20% revenue increase.
The AI server business also witnessed hypergrowth, driven by the rising demand for AI infrastructure and Lenovo’s Neptune liquid cooling solutions. Moving forward, ISG plans to focus on CSP and E/SMB strategies, streamline its product portfolio, and strengthen operational resilience for sustainable growth.
Solutions and Services Group (SSG): Driving Transformation and Growth
The SSG reported a 13% revenue increase year-on-year, reaching $8.5 billion, with an operating margin of 21.1%. The support services business continued to grow steadily, enhancing the hardware user experience. The solutions and ‘as-a-service’ business accounted for nearly 60% of SSG’s revenue, with AI offerings gaining momentum.
Looking ahead, SSG will expand its portfolio within the Lenovo Hybrid AI Advantage framework and deepen its enterprise solutions offerings.
Environmental, Social, and Governance (ESG) Commitments
Lenovo has made significant progress in its ESG commitments, aligning with the Science Based Targets initiative to achieve its 2030 emissions reduction goals. The company received global recognition, including the Gold Award in the Most Sustainable Companies/Organizations category and the Platinum Medal by EcoVadis, placing it in the top 1% of all companies rated worldwide. Lenovo also achieved AAA recognition in MSCI’s ESG Assessment Ratings and A-list recognition from CDP for Climate Change Leadership.
Lenovo’s commitment to inclusivity and diversity has been acknowledged, receiving the "Best Workplace for Disability Inclusion" award for the fourth consecutive year in the US, with expansion to Brazil and the UK. The company has also adopted principles for responsible AI development and has committed to public initiatives like the European Commission’s AI Pact.
For more details, Lenovo’s annual ESG report will be published at the end of June.
About Lenovo
Lenovo is a global technology giant with a revenue of $69 billion, ranked #248 in the Fortune Global 500. The company serves millions of customers across 180 markets, driven by a vision to deliver Smarter Technology for All. Lenovo has evolved as the world’s largest PC company, offering a comprehensive portfolio of AI-enabled, AI-ready, and AI-optimized devices. Its continued investment in innovation aims to build a more equitable, trustworthy, and smarter future for everyone. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). For more information, visit Lenovo’s official website.
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