Lenovo reports strong full-year performance – innovation and operational excellence drive competitiveness
May 22, 2025 – Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries (“the Group”), announced its results for the fourth quarter and the full fiscal year 2024/25, reporting significant year-on-year growth in revenue and profit at the Group level. For the full fiscal year, revenue rose 21% year-on-year to USD 69.1 billion, marking the Group’s second-highest annual level in its history. Net income increased 36% year-on-year to USD 1.4 billion on a non-Hong Kong Financial Reporting Standards (non-HKFRS) basis. The Group’s diversified growth engines continued to accelerate, with non-PC revenue mix increasing nearly five percentage points year-on-year to 47%. All business segments delivered solid performance, meeting their strategic and financial goals. All geographic regions reported double-digit year-on-year revenue growth, reflecting the strength of Lenovo’s diversified business and the resilience of its global footprint.
These results were supported by the Group’s focus on executing a clear strategy, its fully integrated global operations (design, demand forecasting, procurement, manufacturing, marketing, sales, and services), its ODM+ production model, and its “global resources / local delivery” approach. Over more than 20 years of global activity, Lenovo has established a network of over 30 manufacturing sites (in-house or outsourced) across 11 markets worldwide. Together, these offer the Group maximum flexibility and resilience to navigate uncertainties and adapt better to market conditions.
Lenovo continues to invest in research and development, with R&D spending rising 13% year-on-year to USD 2.3 billion. Over the past year, the Group made several major announcements, investments, and breakthroughs as part of its hybrid AI strategy. Highlights include the launch of AI PCs – a segment where Lenovo now ranks first globally in the Windows AI PC category – the introduction of the first foldable phone with Moto AI, rapid growth in AI server business, foundational solution and service capabilities with Lenovo Hybrid AI Advantage, and most recently, the unveiling of the first enterprise-level personal AI agents at the Tech World event in Shanghai.
Looking ahead, Lenovo remains confident that its focus on innovation and hybrid AI, combined with a balanced global business and a flexible, resilient supply chain, will not only maintain but strengthen its market competitiveness.
Lenovo’s Board of Directors declared a final dividend of 3.9 US cents (or 30.5 HK cents) per share for the fiscal year ended March 31, 2025.
Yuanqing Yang, Chairman and CEO, stated:
“This was one of our best years yet, even amid significant macroeconomic uncertainty. We delivered strong revenue growth, with all our business segments and geographic sales regions achieving double-digit increases. Our net income grew even faster. Our strategy to focus on hybrid AI has delivered significant advancements in both personal and enterprise AI, laying a solid foundation for leadership in this new AI era. With 20 years of experience in managing a global business and overcoming challenges, I am confident that our operational excellence and continued investment in innovation will not only keep us competitive but will further strengthen our market position.”
Key Results:
| FY 24/25 (USD millions) | FY 23/24 (USD millions) | YoY Change | Q4 FY24/25 (USD millions) | Q4 FY23/24 (USD millions) | YoY Change | |
|---|---|---|---|---|---|---|
| Group Revenue | 69,077 | 56,864 | +21% | 16,984 | 13,833 | +23% |
| Pre-Tax Income | 1,481 | 1,365 | +8% | 178 | 309 | -42% |
| Net Income | 1,384 | 1,011 | +37% | 90 | 248 | -64% |
| Net Income (non-HKFRS) | 1,441 | 1,060 | +36% | 278 | 223 | +25% |
| Basic EPS (US cents) | 11.30 | 8.41 | +2.89 | 2.02 | 0.73 | -1.29 |
Q4 FY24/25 Performance Highlights:
- Group revenue grew 23% YoY to USD 17 billion, with double-digit revenue growth across all businesses.
- Non-HKFRS net income rose 25% YoY to USD 278 million.
- Intelligent Devices Group (IDG) strengthened its leadership in the PC market, widening the gap with the second player by another percentage point YoY. Smartphone segment revenue outperformed the market by 12 percentage points, ranking 4th globally in markets outside China.
- Infrastructure Solutions Group (ISG) posted a second consecutive quarter of profitability, with over 60% YoY revenue growth.
- Solutions and Services Group (SSG) delivered 18% YoY revenue growth with a record 22.7% operating margin.
Full Year Segment Highlights:
Intelligent Devices Group (IDG):
- Global revenue rose 13% YoY to USD 50.5 billion, with a record-high operating margin of over 7%.
- The PC segment strengthened its top market position, increasing the lead over the second player by nearly 1 point to 3.6 points.
- AI PC segment exceeded volume targets; Lenovo now leads globally in AI PCs with Windows OS.
- Smartphone segment revenue reached its highest level since the Motorola Mobility acquisition, up 27% YoY, with growth in APAC and EMEA complementing traditional markets in LATAM and North America.
- Tablet segment saw double-digit annual sales volume growth.
- FY24/25 launches included ThinkBook Plus Gen 6 (rollable display), Legion Go S portable console, and ultra-premium ThinkPad and Yoga Aura Editions. Motorola expanded its leadership in foldables with the new razr phone enhanced by moto AI.
Infrastructure Solutions Group (ISG):
- Revenue up 63% YoY to a record USD 14.5 billion, reaching profitability in H2.
- Cloud Services Provider (CSP) segment maintained profitability.
- Enterprise/SMB (E/SMB) revenue up 20% YoY to a record high.
- AI server business surged, driven by growing demand and Lenovo Neptune™ liquid cooling.
- Outlook: focus on CSP and E/SMB strategies, product simplification, go-to-market strength, operational resilience.
Solutions and Services Group (SSG):
- Revenue up 13% YoY to USD 8.5 billion, with a 21.1% operating margin.
- Support services grew steadily, enhancing hardware user experience.
- Solutions and “as-a-service” offerings grew faster, now nearly 60% of SSG revenue, driven by AI-related services.
- Outlook: expanding enterprise portfolio under Lenovo Hybrid AI Advantage.
ESG Highlights:
Lenovo advanced its environmental, social, and governance goals in FY24/25, on track to meet 2030 Science Based Targets for carbon reduction. Lenovo received global awards, including:
- Gold Award for Most Sustainable Companies at the HKICPA Best Corporate Governance and ESG Awards.
- Platinum Medal from EcoVadis, ranking in the top 1% of all rated companies.
- AAA rating from MSCI ESG Ratings and A/A- from CDP for Climate and Water leadership.
