Lenovo Reports Strong Q4 Performance
Lenovo has reported another impressive quarter, marking its third consecutive period of double-digit revenue growth across all business units.
The company’s revenue for the quarter ending December 31, 2024, reached $18.8 billion, a significant increase from $15.5 billion a year ago. Profit surged 106 percent to $693 million, reflecting Lenovo’s strong momentum across multiple sectors.
Intelligent Devices Group (IDG):
- Generated $13.8 billion in revenue
- Grew 12 percent year-over-year
Infrastructure Solutions Group (ISG):
- Revenue surged 59 percent to $3.9 billion
- Driven by strong demand for servers, storage, and related infrastructure
Services and Solutions Group (SSG):
- Contributed $2.3 billion, up 13.8 percent
Cash Balance:
- Expanded 14 percent year-over-year to $3.93 billion
CEO Yuanqing Yang highlighted Lenovo’s robust performance, stating:
“Lenovo’s revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses. Notably, the ISG business returned to profitability and the smartphone business experienced rapid growth. AI technology, with higher efficiency and lower costs, is accelerating the maturation of personal AI, particularly on-device AI and edge AI.”
AI & Market Expansion Driving Lenovo’s Success
Lenovo is capitalizing on the AI revolution, seeing enormous opportunities across devices, infrastructure, and services.
The company’s hybrid AI strategy includes AI-powered PCs, edge computing solutions, and AI-driven datacenter products.
With AI adoption accelerating in enterprises, Lenovo expects AI PCs to represent 80 percent of the PC market by 2027.
- Lenovo secured a 24.3 percent market share in the PC business, its highest in five years, staying ahead of Dell.
- Smartphones saw double-digit growth, with the Asia Pacific market up +155 percent and the EMEA market up +28 percent.
- Lenovo aims to enhance AI agent capabilities, multi-device connectivity, and application ecosystems for seamless user experiences.
- ISG business saw +94 percent growth in the Cloud Services Provider (CSP) market.
- ISG business saw +7 percent growth in the enterprise and SMB sectors.
AI-driven server revenue grew steadily, and Neptune liquid cooling systems expanded beyond supercomputing into broader industries. Notably, ISG turned profitable for the first time in seven quarters.
Lenovo is further strengthening its storage business with the acquisition of Infinidat, an enterprise storage company.
Once completed in the second half of 2025, this move will enhance Lenovo’s ability to compete with Dell, HPE, and Huawei in the storage sector.
The Services and Solutions Group (SSG) also benefited from AI adoption, with hardware-attached services contributing significantly. Non-hardware services continued to be a major profit driver for 15 consecutive quarters.
Lenovo’s diversified growth strategy is paying off, with non-PC businesses now accounting for 46 percent of total revenue, up from 42 percent a year ago.
While Lenovo has not provided a revenue outlook for the next quarter, it continues to expand its global presence through strategic partnerships, including its role as FIFA’s official technology partner for the upcoming FIFA World Cup 2026 and Formula 1 racing collaborations.
