Lenovo reported impressive financial results for the first quarter of the fiscal year, showing strong growth and improved profitability across all divisions. The company achieved a 20 percent increase in revenue compared to the previous year, reaching $15.4 billion in sales. Net income also rose 65 percent to $315 million for the quarter.
CEO Yuanqing Yang credited the success to the strategic focus on ‘Hybrid AI’ and its impact on shaping the future of technology. Lenovo is well prepared and uniquely positioned in the market with its full-stack AI portfolio, aiming to lead in this era of hybrid AI. This strategic direction opens up new opportunities for Lenovo 360 partners to capitalize on a growing market segment and maximize their revenue streams.
Intelligent Devices Group (IDG) Double-Digit Growth
A standout achievement highlighted in Lenovo’s financial report is the success of the IDG, which delivered double-digit revenue growth with leading profitability. The smartphone and tablet businesses experienced robust revenue growth of 30 percent, while Lenovo maintained its leading position in the PC market with a 23 percent global market share and strong profitability.
Customers are increasingly adopting a mix of AI technologies, and the PC market is gearing up for a major upgrade cycle fueled by AI-powered PCs. This presents an opportunity for channel partners to make the most of Lenovo’s advanced solutions and cater to the changing demands of tech-savvy consumers.
Infrastructure Solutions Group (ISG) Hypergrowth
Driven by strong growth in its Cloud Service Provider business, ISG delivered a record quarterly revenue of $3.2 billion, up 65 percent year-on-year. Revenue from storage, software, and services also saw significant growth, up 59 percent year-on-year. Lenovo Neptune™ liquid-cooled servers witnessed a staggering 50 percent year-on-year growth due to their eco-friendly features meeting the industry’s rising demand for AI workloads.
By streamlining its product offerings, improving operations, and enhancing strategic partnerships, Lenovo is paving the way for channel partners to expand their market presence and boost profitability in the competitive ISG market.
Solutions and Services Group (SSG) High Operating Margins
Reported margins exceeding 20 percent and 13 consecutive quarters of double-digit revenue growth solidify SSG’s position as the company’s growth engine and profit contributor. The revenue mix of managed services and project solutions services at SSG increased by three percentage points compared to last year, making up 55 percent of SSG’s total revenue.
With AI services becoming the primary driver of the IT services market, Lenovo 360 partners can position themselves as key players in delivering AI-enabled solutions to enterprise clients.
With Lenovo driving innovation and deepening strategic partnerships, Lenovo 360 partners are set to benefit from this momentum and grow their businesses. By leveraging Lenovo’s cutting-edge products, solutions, and services, partners can tap into new sources of revenue, reach more customers, and establish themselves as leaders in the era of hybrid AI to seize the vast growth opportunities on the horizon.
Check out the complete press release for more details on Lenovo’s Q1 achievements. To become a channel partner, visit the Lenovo 360 partner site.