Lenovo Group announced significant growth in both the fourth quarter and the entire fiscal year 2023/24. The company saw its quarterly revenue climb nearly 10% year-on-year to US$13.8 billion, while net income doubled to US$248 million. Non-PC revenue mix soared to a historic 45%. Over the full year, Lenovo's revenue hit US$56.9 billion, with net income reaching US$1 billion. This robust performance in the latter half of the fiscal year marked a recovery from earlier declines, highlighting Lenovo's strategic navigation through recent industry downturns and its effective capitalisation on AI-driven opportunities.
Lenovo advances in AI and computing innovation
Lenovo's recent achievements stem from its comprehensive AI strategy, unveiled at its Tech World event in October 2023. The company has successfully launched a new generation of AI PCs and expanded its AI capabilities across smart devices, infrastructure, and solutions. This innovation drive is aimed at transforming AI PCs from a premium product to a mainstream technology within three years, which is expected to catalyse a new industry-wide refresh cycle. Moreover, Lenovo's ongoing investments in AI and computing continue to support its vision of ‘Smarter AI for All', positioning it at the forefront of the AI technology wave.
Financial and operational highlights by division
Solutions and Services Group (SSG)
The SSG division has emerged as a significant growth engine, posting more than 10% year-on-year revenue growth to US$1.8 billion this quarter. It maintained an impressive operating margin exceeding 21%. For the full fiscal year, SSG's revenue reached US$7.5 billion, marking a 12% increase from the previous year. The division's focus on AI-native and AI-embedded solutions continues to meet growing customer demands effectively.
Infrastructure Solutions Group (ISG)
ISG also reported a strong quarter with a 15% year-on-year revenue increase, bringing its quarterly total to US$2.5 billion. This growth was driven by substantial gains in storage, software, and services, which collectively surged over 50%. Looking ahead, ISG is poised to capture expanding opportunities in AI infrastructure, which is growing nearly twice as fast as the broader server market.
Intelligent Devices Group (IDG)
IDG continued its market dominance in the PC sector, achieving a global market share of 22.9% and leading in four out of five geographical regions. The division reported quarterly revenue of US$10.5 billion and annual revenue of US$44.6 billion. Lenovo's smartphone business also saw remarkable growth, outpacing the industry with double-digit increases in shipments and revenue.
ESG and corporate highlights
Lenovo has been recognised for its climate change leadership and supplier engagement by CDP. It also received several awards at the global CRN Sustainability Tech Summit, including ‘Best Value Chain Initiative' and ‘Best Green Product'. In February, Lenovo joined UNESCO's commitment for responsible AI, adding to its own internal responsible AI committee which oversees ethical, legal, safety, privacy, and accountability for AI products, services, and solutions.
Display of cutting-edge technologies
During the Lenovo Earnings Conference, the company highlighted its commitment to sustainability by introducing the Lenovo Intelligent Sustainability Solutions Advisor (LISSA). LISSA is designed to enhance the way businesses approach sustainable IT practices. This AI-driven platform offers businesses actionable insights and data-driven recommendations to optimise their IT operations in line with sustainability goals. LISSA helps companies assess their IT-related carbon emissions throughout the lifecycle of their products and suggests tailored solutions that can reduce their environmental impact.
The ThinkVision 27 3D Monitor was another highlight, offering advanced 3D display capabilities without the need for special glasses. Lenovo also presented the Adaptive Display Concept with Motorola, and the Transparent Display Laptop Concept. These innovations underline Lenovo's commitment to staying at the forefront of technology and enhancing user experiences.
Looking forward
With its strong performance and strategic focus on AI and innovation, Lenovo is well-positioned to maintain its growth trajectory and enhance its market leadership. The company remains committed to harnessing the potential of Hybrid AI, driving the next wave of growth across its diverse business segments.
