Lenovo reports 20% increase in sales for first quarter

Positive figures mark end to end five-quarter losing streak

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Image: Shutterstock via Dennis Publishing

Lenovo Group has reported a significant increase in quarterly revenue, rising 20% to $15.4 billion for the past quarter. This is the third consecutive quarter of revenue growth for the company after five consecutive quarters of decline.

The global PC market is also showing signs of recovery, with IDC data indicating a return to growth in the first quarter of this year. Lenovo maintained its position as the market leader with a 23% market share, according to IDC.

Lenovo’s non-PC business currently accounts for 47% of its revenue mix, and the company’s chairman and CEO, Yuanqing Yang, has stated that this share will grow to 50% in the near future. The company’s infrastructure solutions group, which includes servers and other hardware, grew 65% last quarter to $3 billion in revenue. The solutions and services group grew 10% to $1.9 billion.

The AI boom is expected to boost Lenovo’s business units across the board, including PCs, servers and enterprise software. Yang predicts that 10% of Lenovo’s shipped PCs will be AI PCs by the end of the year, rising to 50-60% by 2026.

Lenovo’s net income for the quarter was $243 million, above the average estimate of $222.94 million expected by analysts. The company’s chairman and CEO, Yuanqing Yang, said in an interview that an uptick in IT spending by businesses and AI-driven demand will boost business units across the board.

Lenovo is well positioned to meet the challenges of rising geopolitical tensions between China and the US, including restrictions on exports of advanced AI technology. The company complies with regulations in all regions where it operates, allowing it to adapt to changing circumstances.

Read More: Lenovo Results