Lenovo Group closed its fiscal year 2024/25 with strong financial results, posting a 21% increase in annual revenue to $69.1 billion and a 36% year-over-year rise in net income (on a non-HKFRS basis) to $1.4 billion. These gains, which mark the second-highest annual revenue in the company’s history, reflect solid performance across all business segments and geographic markets. Notably, revenue growth in every region reached double digits, highlighting the resilience of Lenovo’s globally diversified operations.
This performance was underpinned by Lenovo’s integrated approach to operations—spanning design, manufacturing, procurement, and services—supported by a global footprint of over 30 manufacturing sites in 11 markets. The company’s ODM+ model and a blend of centralized strategy with localized delivery have helped it stay agile in the face of market volatility and supply chain disruptions.
During the year, Lenovo continued to increase its investment in research and development, with R&D spending rising 13% to $2.3 billion. The company also advanced its hybrid AI strategy, introducing a range of AI-centric offerings including AI PCs, enterprise-grade AI solutions, and its first AI-powered “super agents.” Lenovo now leads in global shipments of Windows-based AI PCs and has seen strong traction in AI server demand.
Lenovo’s Intelligent Devices Group, which includes PCs, smartphones, and tablets, grew 13% year-over-year to $50.5 billion. Its PC business maintained market leadership, while smartphone revenues hit their highest levels since the Motorola acquisition, boosted by 27% growth and strong performance in EMEA and Asia Pacific. Lenovo also launched several high-end devices, including rollable display laptops and updated foldables equipped with Moto AI.
In the infrastructure space, the Infrastructure Solutions Group delivered a standout performance, with annual revenue up 63% to $14.5 billion. The group turned profitable in the second half of the year, driven by enterprise growth, CSP scaling, and rising demand for AI infrastructure—particularly Lenovo’s Neptune™ liquid-cooled servers.
Meanwhile, the Solutions and Services Group reported revenue of $8.5 billion, up 13% year-over-year, and achieved a 21.1% operating margin. Growth was strongest in services delivered under subscription and ‘as-a-service’ models, with AI-enabled solutions gaining momentum.
However, not all results were uniformly strong. In Q4, despite a 23% year-over-year increase in revenue to $17 billion, Lenovo’s operating profit declined by 32% to $331 million, and net income attributable to equity holders fell 64% to $90 million. Still, on a non-HKFRS basis, Q4 net income rose 25%, offering a more stable picture of underlying performance.
Beyond its core financials, Lenovo emphasized progress on its ESG agenda, including recognition from global sustainability ratings and steps toward its 2030 emissions targets. The company also expanded its workplace inclusion efforts and reinforced its governance around responsible AI development.
Looking forward, Lenovo aims to build on its AI initiatives and maintain momentum through continued investment, operational efficiency, and a balanced geographic presence. With a final dividend declared at 3.9 US cents per share, Lenovo signals cautious confidence amid a complex and evolving global tech landscape.
