Lenovo on Wednesday reported a record US$20 billion in revenue for its most recent quarter, aided by growth in all its core businesses.
The earnings report from the third quarter of the fiscal year 2021/2022 showed net income growing 62 percent year-over-year to a record US$640 million – the sixth consecutive quarter showing net income growth of more than 50 percent. The Hong Kong-based company has capitalized on a huge increase in PC demand as COVID-19 forced more at home and hybrid work over the last two years and managed to outsell a supply chain crisis that has hobbled other tech companies.
Lenovo CEO Yuanqing Yang touted the results while doubling down on the company’s commitment to continue investing in research and development. “Lenovo continued to embrace the opportunities driven by accelerated digital and intelligent transformation, and our new IT architecture prepared us well…” Yang said in a statement. “We remain on track to double both our net margin and R&D investment in three years from FY20/21 levels.”
Lenovo highlighted strong results from its Solutions and Services Group (SSG), Infrastructure Solutions Group (ISG), and Intelligent Devices Group (IDG), which produced Q3 revenue of US$1.5 billion, US$1.9 billion, and US$1.4 billion respectively. SSG covers the company’s IT services offerings, which has begun to focus heavily on an as-a-service offering. ISG encompasses Lenovo’s cloud services offerings, which grew by 38 percent year-over-year.
“Once again, we have shown that Lenovo’s innovation, transformation strategy, and strong execution can consistently deliver sustainable profitability increases for the future,” Lenovo’s Yang said.