Lenovo Group Limited has reported strong recovery and accelerated AI leadership in its Q2 results. The company recorded a Group revenue of US$14.4 billion and a net income of US$273 million during the quarter. This represents a significant improvement in performance, with gross profit margin reaching a record high of 17.5% for a second quarter. Non-PC businesses accounted for 40% of the Group’s revenue, showing strong growth.
Lenovo attributes its recovery to the successful execution of its strategy, operational excellence, and continuous investment in innovation. The company is confident in its ability to resume year-on-year growth in the near future. It plans to leverage the opportunities created by artificial intelligence (AI) given its hybrid AI model, pocket-to-cloud portfolio, strong ecosystem, and partnerships. Lenovo’s ongoing investment in AI and innovation will help drive sustainable growth and profitability.
Lenovo has a long-standing focus on AI and has outlined its vision of ‘AI for All’. This includes a range of AI-enabled devices such as PCs, smartphones, and tablets, as well as AI-ready infrastructure, solutions, and services. The company is uniquely positioned to capitalize on the exponential growth from AI, supported by its strong ecosystem and partnerships, including an expansion of its collaboration with NVIDIA.
During its annual Tech World innovation event, Lenovo showcased its full-stack AI capabilities and emphasized the importance of a hybrid AI model that ensures security and privacy. The company is committed to investing a further US$1 billion in AI-driven innovation to drive sustainable growth across its entire business.
Lenovo’s Solutions and Services Group (SSG) achieved record revenue and operating profit during the quarter, while the Infrastructure Solutions Group (ISG) focused on building hybrid AI infrastructure. The Intelligent Devices Group (IDG) solidified its market leadership and seized AI device opportunities.
In the past quarter, Lenovo has been recognized for several achievements in environmental, social, and governance (ESG) areas. The company is committed to responsible practices and sustainable growth.
Lenovo’s CEO, Yuanqing Yang, expressed confidence in the company’s future growth prospects, highlighting its intelligent transformation strategy, AI ecosystem, and strengthened partnerships. With its ongoing investment in AI and innovation, Lenovo aims to deliver on its vision of ‘AI for All’ and achieve sustained success in the market.