Lenovo Delivers Strong Q2, Fueled by Hybrid AI

Lenovo Group Limited (HKSE: 992) (ADR: LNVGY) has reported impressive financial results for Q2 of fiscal year 2024/25. The Group recorded a 24% year-on-year increase in revenue, reaching US$17.9 billion, and a 48% rise in net income, which amounted to US$404 million on a non-HKFRS basis. This marks the fourth consecutive quarter of year-on-year revenue growth, with all business groups contributing strong double-digit increases. Non-PC revenue also climbed, accounting for 46% of the Group’s revenue mix.

Lenovo’s success is attributed to its clear strategy, operational excellence, and consistent investment in R&D and innovation. Notably, its hybrid AI initiatives have played a pivotal role, setting new benchmarks in market differentiation and leadership.

Hybrid AI Strategy Fuels Growth

Lenovo’s hybrid AI strategy is yielding impressive results. The first phase of AI PCs, launched in China in May 2024, has already captured a double-digit share of total notebook shipments in the Chinese market. Following this success, the global rollout of Lenovo AI Now has received widespread acclaim. In the enterprise sector, Lenovo’s full-stack hybrid infrastructure and Hybrid AI Advantage are driving growth, showcasing the Group’s commitment to leveraging cutting-edge technology to meet evolving market demands.

The Group increased its R&D investments by 10% year-on-year to US$548 million, reinforcing its focus on innovation. These efforts are central to Lenovo’s strategy to maintain its competitive edge and sustain accelerated growth.

Optimistic Outlook

Looking ahead, Lenovo is committed to driving innovation in hybrid AI to further enhance growth and profitability. The Group is confident in its ability to sustain momentum through the remainder of the fiscal year.

Yuanqing Yang, Chairman and CEO of Lenovo, commented: “Last quarter, we achieved strong, sustainable, and accelerated growth, marking another period of revenue expansion across all business groups. This significant momentum is driven by our clear strategy, innovation investment, operational excellence, and global presence, as well as our commitment to hybrid AI, where we are further strengthening our market differentiation and industry leadership. As we look ahead, we are confident that our ongoing innovation advancements in hybrid AI will continue to accelerate growth and profitability, propelling us forward for the rest of the fiscal year.”

Key Financial Results

The Board of Directors declared an interim dividend of 8.5 HK cents per share, underscoring Lenovo’s confidence in its growth trajectory. As Lenovo continues to lead the way in hybrid AI and expand its global footprint, the Group is well-positioned for sustained success in the rapidly evolving tech industry.