Lenovo Reports 20% Revenue Increase in Third Quarter Amid PC Market Recovery

Chinese technology company Lenovo has announced a 20% increase in its revenue for the third quarter, showcasing signs of recovery in the global personal computer industry.

As the largest PC manufacturer worldwide, Lenovo reported revenues of $18.8 billion for the quarter that ended on December 31. This figure surpassed analyst projections, which estimated revenue at $17.82 billion, according to data from LSEG.

In addition to strong revenue, Lenovo’s net profit stood at $693 million, significantly higher than the analysts' expectations of $367.7 million.

The global personal computer market is still navigating uncertainties following a downturn experienced after the pandemic. Data from research group IDC indicates that PC shipments grew modestly by 1.8% in the fourth quarter of 2024.

Despite these challenges, Lenovo solidified its status as the top vendor in the PC sector, capturing a 24.5% market share, with shipments increasing by 4.8% during the reported quarter, as per IDC's analysis.

In recent years, Lenovo has expanded beyond its primary PC operations. The company has ventured into software and services, gearing up to capitalize on the rising demand for artificial intelligence (AI) technologies. It has experienced growth in its AI server and software offerings.

The demand for computers equipped with AI capabilities is emerging as a significant growth driver within the PC market, prompting manufacturers to introduce models featuring specialized chips tailored for AI functions.

Last year, in May, Lenovo launched its inaugural AI-powered PCs in China, with a worldwide rollout following in September. CEO Yang Yuanqing has predicted that AI-focused PCs could make up 25% of Lenovo’s total shipments by 2025 and may reach 80% by 2027.

Earlier this week, Lenovo announced the integration of technology from Chinese AI startup DeepSeek into its gadgets, including PCs and tablets. Users can leverage DeepSeek’s AI services conveniently through Lenovo's AI assistant, "XiaoTen," without the need for separate downloads or registrations.

Furthermore, Lenovo’s infrastructure solutions group, which encompasses IT solutions like servers, witnessed an impressive 59% revenue increase in the December quarter compared to the previous year, driven primarily by high server demand.

Additionally, the solutions and services group, which focuses on cloud-based software for enterprise clients, achieved revenues of $2.3 billion, reflecting a 12% increase from a year earlier.

Lenovo, Revenue, PC, AI, Market