Lenovo has made $20 billion in revenue for the first time ever in a single quarter.
Revenue rose 17 percent for the third quarter compared with the same period last year to $20.1 billion, while net income surged by 62 percent to reach $640 million.
It was the sixth consecutive quarter with net income growing at a rate of over 50 percent.
Lenovo chairman and CEO Yuanqing Yang said: “Lenovo continued to embrace the opportunities driven by accelerated digital and intelligent transformation, and our new IT architecture prepared us well with client-edge-cloud-network-intelligence capabilities. With another record quarter, we delivered the sixth quarter of more than 50 per cent net income year-on-year growth, and the first $20 billion revenue quarter in our history.”
He said the company was on track to double both our net margin and R&D investment in three years from 2021.
Lenovo’s Solutions and Services Group saw third revenue growth of 25 percent year-on-year to $1.5 billion, making up 7.1 percent of the overall group’s revenue and with an operating margin of over 22 percent.
This included managed services sales growth of 50 percent year-on-year, which Lenovo said was driven by its TruScale as-a-Service offerings announced last quarter.
Its Infrastructure Solutions Group achieved profitability for the first time since the IBM x86 acquisition made in 2014, while revenue grew 19 percent year-on-year to reach $1.9 billion.
Cloud service provider revenue saw 38 percent growth year-on-year, while enterprise and SMB revenue improved by seven percent.
Lenovo pointed to the success of premium PC segments including workstation and gaming revenue growth while adding that smartphones had maintained a “healthy profit for the seventh consecutive quarter”.
