Lenovo’s fourth quarter and full-year reports for fiscal year 2023/24 show that the outfit’s revenue for the fiscal year reached a record high of $70 billion (£50 billion), marking a 10 per cent increase over the previous year.
Net income also saw significant growth, reaching $2 billion (£1.4 billion), up by 15 per cent year over year.
The report further highlights year-on-year revenue growth across all business groups in Q4, with group revenue increasing nearly 10 per cent to $13.8 billion (£9.9 billion), net income doubling to $248 million (£178 million), and the non-PC revenue mix reaching a historic high of 45 per cent.
Chairman and CEO Yuanqing Yang said the results showcase a significant rebound and acceleration in growth driven by its strategic focus on Artificial Intelligence (AI) and innovation.
“I am proud that Lenovo has demonstrated strong resilience and navigated through our industry cycle relatively smoothly. Despite the market downturn, we resumed growth in the second half of the fiscal year and accelerated our momentum in the fourth quarter. As a result, we emerged from the challenges with strong core competencies, efficient operations, healthy financials, and profound transformation,” he said.
Lenovo’s success during the fiscal year 2023-2024 can be attributed to its focus on AI technology for its PCs, laptops, and desktops. The introduction of AI-powered computers and smart improvements to devices, infrastructure, and services solidified its position as a leading company in the AI-driven technology era.
Yuanqing Yang stated, “Lenovo’s high-performance computing and Neptune water cooling technology continue to set industry standards. Our smart solutions and services segment has emerged as a key driver of growth and profitability, fueling the company’s diversification and service-oriented transformation.”
He added that Lenovo is expanding its footprint in digital workplace solutions, edge AI, hybrid cloud, TruScale offerings, and sustainability solutions, enjoying broad adoption across customer segments.
Emphasising the company’s diversified portfolio, the chairman said Intelligent Devices Group (IDG), Infrastructure Solutions Group (ISG), and Solutions & Services Group (SSG) have contributed to this stellar performance.
Sector-wise Performance:
- Intelligent Devices Group (IDG): Lenovo’s PC business maintained its global leadership, achieved a market share of 22.9 per cent, and achieved robust profitability. The smartphone segment also witnessed potential growth.
- Solutions and Services Group (SSG): This segment reached $1.8 billion (£1.3 billion) in Q4 – more than 10 per cent year-on-year revenue growth. The focus on AI-native solutions and services like Digital Workplace Solutions and TruScale for Hybrid Cloud has been pivotal in driving profitability.
- Infrastructure Solutions Group (ISG): ISG rebounded with a 15 per cent year-on-year revenue growth in Q4, driven by strong performances in storage, software, and services. AI servers are expected to be a key growth area for ISG as the demand for AI infrastructure intensifies.
