Lenovo recently announced its global Q3 results for fiscal year 2024/25, and the news is impressive for channel partners. With total revenue hitting a record $18.79 billion—up 20 percent year-on-year—Lenovo is experiencing its third consecutive quarter of double-digit growth. This surge is particularly exciting as net income more than doubled to $693 million.
The driving force behind these robust numbers lies in Lenovo’s focused hybrid-AI strategy and growth across diverse segments. Non-PC revenue now comprises 46 percent of Lenovo’s earnings, showcasing a commitment to innovation beyond traditional computing. From cutting-edge AI devices to infrastructure solutions, Lenovo is pushing the envelope and setting the stage for future success—something all partners should note.
Chairman and CEO Yuanqing Yang attributes this success to the company's robust core business operations and the increasing demand for AI-driven solutions. Lenovo is harnessing advanced software models to drive higher efficiencies, on-device AI, and cutting-edge AI applications, proving that they're not just keeping up but leading the charge in the tech landscape. Yang noted that adopting large language models (LLMs) democratizes AI, making it more accessible to users and accelerating enterprise deployment.
Intelligent Devices Group (IDG) Thrives
Lenovo 360 partners can look forward to IDG opportunities. The business group reported a strong quarter with a revenue increase of 12 percent year-on-year, totaling $13.8 billion. The upcoming Windows 10 end of life is spurring businesses to upgrade, creating a great opportunity for partners to engage clients for product refreshes. With a market share of 24.3 percent, customers are increasingly turning to Lenovo for their computing needs — the first time in five years that the company has achieved such a lead.
Infrastructure Solutions Group (ISG) Enters Hypergrowth
Lenovo’s ISG business reported record sales of $3.9 billion, bolstered by a 59 percent year-on-year increase in revenue. Their strategic focus on cloud solution providers is paying off, with sales skyrocketing by 94 percent while enterprise and small business grew 7 percent. Plus, plans to acquire Israeli storage vendor Infinidat remain on track, promising even deeper technology advancements for all partners.
Solutions and Services Group (SSG) Heats Up
The SSG business marked an incredible 15 consecutive quarters of double-digit revenue growth. With revenues of $2.3 billion and an impressive operating margin of 20 percent, there's much to gain here for partners looking to tap into AI-powered solutions and hardware-attached services.
As Lenovo forges ahead with strategic technology partnerships and global supply chain resilience, Lenovo 360 partners are well-positioned to leverage this momentum. By aligning with Lenovo’s hybrid AI innovations, partners can enhance their market offerings and drive growth and profitability.
Learn more in the Lenovo infographic and check out the full press release.