Lenovo Group announces record fiscal first quarter results for the group

Lenovo Group announced record fiscal first quarter results for the Group. Opportunities created by accelerated digitalization, intelligent transformation and IT upgrades in devices, infrastructure, and applications around the world continue to fuel the Group’s long-term and sustainable profitability increases.

Yuanqing Yang, Chairman and CEO at Lenovo

Seizing these opportunities, Lenovo’s performance delivered significant year-on-year profitability improvements, with pre-tax income almost doubling to US$650 million (up 96%), and net income also more than doubled (up 119%), as net income margin reached 2.8%, the highest in many years. First-quarter Group revenue continued hypergrowth to US$16.9 billion, up 27% year-on-year.

Looking ahead, the company sees continued opportunities for sustainable growth and profitability improvements across its business, in areas such as vertical solutions, infrastructure solutions, premium PCs, and adjacent non-PC devices such as tablets, smartphones, embedded computing, and other smart devices. Additionally, innovation will continue to help drive profitable, sustainable growth. Having increased R&D expense in the first quarter by 40% year-on-year, Lenovo will further invest in innovation and double its R&D investments over the next three years.

This quarter is the first time the company is reporting under the new business group structure of Solutions and Services Group (SSG), Infrastructure Solutions Group (ISG), and Intelligent Devices Group (IDG) that was announced earlier this year.

“The accelerated digital and intelligent transformation has created significant market opportunities globally. Lenovo is successfully seizing these as we transform from a device company to a services and solutions provider. The proof is in our performance – this quarter alone we’ve doubled profitability year-on-year while net income margin reached the highest in many years,” said Yuanqing Yang, Lenovo Chairman and CEO. “Going forward, we will continue to increase R&D investment, aiming to double it over the next three years; we will further improve our operational excellence; and we remain committed to green innovation and corporate citizenship to achieve long-term sustainable profitability increases.”

“Similar to our global results, we have also mirrored our success story locally. According to IDC’s latest figures for the Gulf region, Lenovo has achieved the highest market share of traditional PC shipments, coming in at 26.3%. Our focus has remained on catering to diverse audiences with technology that speaks to their individual needs. For example, we launched our lightest ever ThinkPad – the ThinkPad X1 Nano, to empower today’s work from anywhere strategy. The passion for gaming in the Gulf region is something which captures worldwide attention – as a brand we have focused on upgrading our Legion lineup to help gamers better compete at a local and international level. For the upcoming months, we are focusing on further evolving our premium PC lineup, ensuring that we stay true to our vision of creating smarter technology for all,” said Mohammed Hilili, General Manager of Lenovo Gulf.