Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries (the “Group”), today announced results for the fourth quarter and full year of fiscal 2024/25, reporting substantial increases in both revenue and profit. For the full year, revenue rose 21% year-on-year to USD 69.1 billion, marking the Group’s second-highest annual revenue on record. Non-HKFRS net income increased 36% year-on-year to USD 1.4 billion.
The Group’s diversified growth drivers continued to accelerate, with the share of non-PC revenue growing by nearly five percentage points year-on-year to 47%. All business units performed strongly and met their strategic objectives and financial targets, while every sales region achieved double-digit revenue growth year-on-year. This performance underscores the strength of Lenovo’s diversified business portfolio and its resilient global footprint.
These results were driven not only by a clear strategic focus but also by Lenovo’s fully integrated global operations—encompassing design, demand forecasting, procurement, manufacturing, marketing, sales, and services—its ODM+ manufacturing model, and a global-resources/local-delivery approach. Over two decades of global operations have enabled Lenovo to build a manufacturing presence of more than 30 facilities (owned or outsourced) across 11 markets worldwide. This combination gives the Group maximum flexibility and resilience to navigate uncertainty and adapt to changing market conditions.
Lenovo continued to prioritize investment in innovation, with R&D spending up 13% year-on-year to USD 2.3 billion. Over the past year, the Group announced several important milestones and investments as part of its hybrid AI strategy. Highlights include the launch of AI PCs—making Lenovo the global leader in Windows AI PCs; the introduction of the first foldable phone with Moto AI; strong growth in AI server operations; the development of core solutions and services under Lenovo Hybrid AI Advantage; and the debut of the company’s first personal and enterprise AI super-agents at Tech World in Shanghai.
Lenovo remains confident that its focus on innovation and hybrid AI, combined with a globally balanced business model and a flexible, resilient supply chain, will not only sustain but enhance its market competitiveness.
Lenovo’s board has declared a final dividend of US 3.9 cents, or HK 30.5 cents per share, for the fiscal year ended March 31, 2025.
Chairman and CEO quote – Yuanqing Yang:
“This has been one of our strongest years to date, despite significant macroeconomic uncertainty. We achieved robust revenue growth with double-digit expansion across all business groups and sales regions, and our profit grew even faster. Our strategy to focus on hybrid AI has driven meaningful progress in both consumer and enterprise AI, laying a solid foundation for leadership in the AI era. After 20 years of leading a global company through challenges, I am confident that our operational excellence and continued investment in innovation will not only preserve but strengthen our competitive position.”
Financial highlights:
Group results for FY24/25 Q4: Revenue and non-HKFRS net income each grew more than 20%; double-digit year-on-year revenue growth across all businesses.
- Group revenue increased 23% year-on-year to USD 17 billion, with double-digit revenue growth across all business segments.
- Non-HKFRS net income rose 25% year-on-year to USD 278 million.
- The Intelligent Devices Group further expanded its leadership in the PC market, widening the gap over the second-ranked competitor by another percentage point year-on-year. Smartphone revenue grew strongly—up 12 percentage points—and Lenovo is now ranked fourth globally by smartphone revenue outside China.
- The Infrastructure Solutions Group achieved profitability for the second consecutive quarter and year, with revenue growth exceeding 60% year-on-year.
- The Solutions and Services Group delivered 18% year-on-year revenue growth and a record operating margin of 27%.
Full-year results:
Intelligent Devices Group (IDG): Strengthened market leadership and wins in personal AI
Fiscal 24/25 results:
- IDG total revenue rose 13% year-on-year to USD 50.5 billion, with an operating margin above 7%—a historically high level.
- PCs expanded their market leadership, increasing the gap over the second-largest competitor by nearly one point to 3.6 points while maintaining industry-leading profitability.
- AI PCs exceeded annual volume targets, and Lenovo is now the global leader in the Windows AI PC category.
- Smartphone revenue reached its highest level since the acquisition of Motorola Mobility, surging 27% year-on-year. Growth was strong across Asia-Pacific and EMEA, complementing traditional strength in Latin America and North America.
- Tablet business delivered double-digit growth in unit sales year-on-year.
- Innovative form factors launched throughout fiscal 24/25 included AI-enabled PCs and smartphones such as the ThinkBook Plus Gen 6 with a rollable display, the handheld gaming console Legion Go S, and premium ThinkPad and Yoga Aura editions. Motorola reinforced its leadership in foldables with the latest Motorola RAZR enhanced by Moto AI features.
- Going forward, IDG will continue to build an AI-driven application ecosystem to deliver seamless multi-device experiences and further develop the AI super-agents introduced at Tech World in Shanghai.
Infrastructure Solutions Group (ISG): Hyper growth and profitability driving hybrid infrastructure
Fiscal 24/25 results:
- ISG experienced a year of substantial growth, with revenue up 63% year-on-year to a record USD 14.5 billion. Operating margin improved significantly and ISG reached break-even in the latter part of the fiscal year.
- Cloud service provider (CSP) business continued to scale with self-sustaining profitability.
- Enterprise and SMB (E/SMB) business achieved strong performance, with revenue up 20% year-on-year to record levels.
- AI server business also posted robust growth driven by rising demand for AI infrastructure, with Lenovo’s Neptune™ liquid-cooling solutions playing a key role in rapid expansion.
- Going forward, ISG will continue to execute its CSP and E/SMB strategies, simplify its product portfolio, strengthen go-to-market capabilities, and enhance operational resilience to drive steady, balanced growth across regions and sustainable profitability.
Solutions and Services Group (SSG): High-margin transformation engine accelerating hybrid AI advantage
Fiscal 24/25 results:
- SSG further solidified its role as the Group’s transformation engine, with revenue up 13% year-on-year to USD 8.5 billion and an operating margin of 21.1%.
- Support services continued steady growth and improved hardware user experience.
- Solutions and “as-a-service” offerings grew faster and now account for nearly 60% of SSG revenue, with AI solutions in particular generating meaningful momentum.
- Looking ahead, SSG will continue building capabilities under the Lenovo Hybrid AI Advantage framework while expanding and deepening its enterprise solutions portfolio.
ESG highlights
Lenovo made progress on its environmental, social, and governance commitments in fiscal 24/25 and remains on track to meet its 2030 emissions reduction targets, aligned with the Science Based Targets initiative. The company received multiple global recognitions over the past year, including awards for corporate governance and ESG, EcoVadis Platinum—placing Lenovo among the top 1% of companies rated globally—and an AAA rating from MSCI’s ESG Assessment. Lenovo also earned A-list recognition from CDP for Climate Change and Water security. Inclusion remains central to Lenovo’s mission to provide smarter technology for all; in 2024, Lenovo was named a top workplace for disability inclusion in the U.S. for the fourth consecutive year and expanded similar recognition to Brazil and the U.K. As part of its Smart AI for All commitment, the company has adopted governance principles that promote responsible, ethical, and secure AI development and deployment and has engaged in public initiatives such as the European Commission’s AI Pact. Further details on these efforts will be published in Lenovo’s annual ESG report to be released at the end of June.
Non-HKFRS measures were adjusted to exclude items such as net changes in fair value of financial assets at fair value through profit or loss, amortization of acquisition-related intangible assets, merger and acquisition related costs, gain on deemed disposal of a subsidiary, impairments and write-offs of intangible assets, one-time tax benefits, restructuring and other charges, gain on revaluation of issued put option liabilities, changes in fair value of derivative liabilities related to warrants and the coupon on convertible bonds, and the related tax effects, if any.
About Lenovo
Lenovo is a global technology company with USD 69 billion in revenue, ranked 248 on the Fortune Global 500, serving millions of customers across 180 markets. With a bold vision to deliver smarter technology for all, Lenovo has built on its position as the world’s largest PC company and offers a full portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (servers, storage, edge, HPC, and software-defined infrastructure), software, solutions, and services. Lenovo’s continued investment in transformative innovation aims to build a fairer, more reliable, and smarter future for everyone, everywhere. Lenovo Group Limited is listed on the Hong Kong Stock Exchange (HKSE: 992) (ADR: LNVGY).
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