Lenovo is riding a wave of success as it concludes the second quarter of its 2024-25 fiscal year with impressive double-digit growth across multiple business segments. Lenovo achieved a remarkable 24 percent year-over-year group revenue increase, climbing to $17.9 billion. Net income was up 48 percent to an impressive $404 million. Non-PC revenue mix increased five points year-to-year to 46 percent.
So, what’s behind this momentum? A robust hybrid AI strategy and a hefty $548 million investment in research and development (R&D) are key players.
Lenovo CEO and Chairman Yuanqing Yang credits much of this profitable growth to its innovative hybrid AI strategy that covers all their product offerings. This strategic move is a calculated decision backed by substantial investments that have started to pay dividends. For Lenovo 360 partners, this is a significant development as it shows they have a supplier committed to continuous AI innovation, market differentiation, and industry leadership.
Intelligent Devices Group (IDG)
IDG had a quarter with double-digit revenue growth, reaching $13.5 billion, growing 17 percent year-on-year. The PC business expanded its market leadership to almost 24% market share, widening the lead to the number two player. Smartphone and tablet revenue rose by 43 and 19 percent compared to the previous year. This growth in client devices presents prospects for Lenovo 360 partners as they now have access to an updated product range that integrates advanced AI technologies.
Infrastructure Solutions Group (ISG)
On the infrastructure front, revenue surged by 65 percent year-over-year to $3.3 billion, driven by a strong demand for cloud solutions and a rebounding enterprise segment. Total revenue from storage, software, and services rose 35 percent to an all-time high, with sales of their Neptune liquid-cooled servers increasing by 48 percent from the year before.
As the data center business strengthens its model, it will look to diversify its advanced hybrid AI infrastructure solutions. Lenovo 360 partners can leverage these advancements by offering these innovative solutions to their enterprise and SMB clients.
Solutions and Services Group (SSG)
In the second quarter, SSG's revenue increased 13 percent compared to the previous year, reaching $2.2 billion. This marks the unit's 14th consecutive quarter of double-digit growth. The revenue mix from managed services and project and solutions services accounted for nearly 60 percent of the division’s total revenue for the quarter.
With a relentless focus on integrating AI within its offerings, channel partners are poised to experience increased traction in digital workplace solutions, hybrid cloud, and sustainability solutions.
As Lenovo boldly navigates the evolving tech landscape, the channel should notice how the company's hybrid AI strategy and investment in R&D are positively impacting the growth and success of its partners.
Learn more about Lenovo's second-quarter results in the infographic and check out the full press release.
