Lenovo’s third-quarter revenue jumps 20% as PC industry recovers

Chinese technology company Lenovo reported a 20% rise in third-quarter revenue on Thursday, as the global personal computer industry showed modest signs of recovery.

Lenovo, the world’s largest PC maker, reported revenue of $18.8 billion for the quarter ended December 31. That exceeded analysts’ expectations of $17.82 billion, LSEG data showed.

The company’s net profit came in at $693 million, against analysts’ estimate of $367.7 million.

The global PC market is still facing uncertainty following a post-pandemic slump, with shipments growing by a modest 1.8% during the fourth quarter of 2024, according to research group IDC.

Lenovo maintained its position as the largest PC vendor for the reported quarter, capturing a 24.5% market share with shipments growing by 4.8%, IDC data showed.

The company has diversified beyond its core PC business in recent years, expanding into software and services. It has also positioned itself to benefit from the booming demand for artificial intelligence (AI) applications by growing its AI server and software businesses.

Demand for AI-capable computers has emerged as a key growth driver for the PC industry, with manufacturers racing to launch models equipped with specialised chips for AI applications.

Last May, Lenovo launched its first AI-powered PCs in China, followed by a global rollout in September. CEO Yang Yuanqing has projected that AI PCs will account for a quarter of Lenovo’s shipments by 2025, potentially reaching 80% by 2027.

Lenovo said earlier this week that it has integrated Chinese AI startup DeepSeek’s technology into its devices, including PCs and tablets.

Users can access DeepSeek’s AI services through Lenovo’s AI assistant “XiaoTen” without needing to download or register, according to the company.

Lenovo’s infrastructure solutions group, which includes IT solutions like servers, saw a 59% revenue increase in the December quarter, compared with the previous year, driven by strong server demand.

The solutions and services group, which offers cloud-based software for enterprise clients, posted $2.3 billion in revenue, up 12% from a year earlier.