Lenovo reports second-highest annual revenue in history

Chinese tech heavyweight Lenovo Group Ltd said on Thursday its revenue grew 21 percent year-on-year to $69.1 billion for the fiscal year of 2024-2025, which ended on March 31, marking Lenovo's second-highest annual revenue in its history.

Net income was up 36 percent year-on-year to $1.4 billion on a non-Hong Kong Financial Reporting Standards basis.

Lenovo diversified growth engines continue to accelerate, with non-PC revenue mix up nearly five points year-on-year to 47 percent. All business groups were healthy and strong and met their strategic intent and financial goals, and all sales geographies recorded double-digit revenue growth year-on-year, reflecting the strength of Lenovo's diversified businesses and resilient global footprint, the company said.

Yang Yuanqing, chairman and CEO of Lenovo, said "This has been one of our best years yet, even in the face of significant macroeconomic uncertainty. We achieved strong top-line growth with all our business groups and sales geographies growing by double digits, and our bottom-line increased even faster."

"Our strategy to focus on hybrid AI has driven meaningful progress in both personal and enterprise AI, laying a strong foundation for leadership in this AI era. With 20 years of leading a global business and navigating challenges, I'm confident that our operational excellence and continued investment in innovation will not only sustain but strengthen our competitiveness," Yang added.

According to Lenovo, the results were not only driven by its focus on executing a clear strategy, but also its end-to-end integrated global operations, which include design, demand forecasting, procurement, manufacturing, marketing, sales, and services, as well as global resources and local delivery model.

Yang said over the past 20 years of operating a global business, Lenovo has established a manufacturing footprint that boasts more than 30 manufacturing sites (either in-house or outsourced in 11 different markets around the world.

"The combination of these gives Lenovo maximum flexibility and resilience to navigate through uncertainties and be more adaptive to the market conditions," Yang added.

Meanwhile, Lenovo continues to prioritize investment in innovation, with research and development investment up 13 percent year-on-year to $2.3 billion.

The company said the past year saw several key announcements, investments, and milestones from Lenovo as part of its hybrid AI strategy. These include the launch of AI PCs, where Lenovo is now number one globally in the Windows AI PC category, the launch of the first foldable phone with Moto AI, hypergrowth in the AI server business, the creation of core solutions and services capabilities with Lenovo Hybrid AI Advantage, and most recently the launch of Lenovo first personal and enterprise AI super agents at its Tech World event in Shanghai.

Looking ahead, Lenovo remains confident that its focus on innovation and hybrid AI, together with its globally balanced business and a flexible, resilient supply chain will not only maintain but also enhance its market competitiveness, Yang added.

Lenovo's Board of Directors declared a final dividend of 3.9 US cents, or 30.5 HK cents, per share for the fiscal year ended March 31, 2025.