Shanghai,china-august,12th,2023:,Lenovo,Company,Brand,Logo,Sign

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On Thursday, <a target="_blank" href="https://www.benzinga.com/topic/lenovo" rel="noreferrer noopener">Chinese PC company</a>&nbsp;Lenovo Group Ltd&nbsp;(OTC:&nbsp;LNVGY) reported fiscal third-quarter revenue growth of&nbsp;20% year-on-year&nbsp;to $18.796 billion, beating the&nbsp;analyst consensus estimate of $15.58 billion. This marked the highest quarterly sales in the past three years and the second highest in <a target="_blank" href="https://investor.lenovo.com/en/financial/results.php" rel="noreferrer noopener">the Group&#8217;s history</a>.



All three business groups achieved double-digit year-over-year revenue growth for the third consecutive quarter.



Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43828018/baidus-ai-cloud-robotaxi-growth-and-accelerated-buybacks-position-it-for-a-strong-2025-analyst" rel="noreferrer noopener">Baidu&#8217;s AI Cloud, Robotaxi Growth And Accelerated Buybacks Position It For Strong 2025: Analyst</a>



The quarter&#8217;s results were driven by the Group&#8217;s focused hybrid AI strategy, the turnaround of the Infrastructure Solutions Group, and double-digit growth for both the Intelligent Devices Group and Solutions and Services Group.&nbsp;&nbsp;



The Solutions and Services Group (SSG) posted revenue growth of 12% Y/Y to $2.26 billion, a firm operating margin of 20.4%. The segment accounted for 31% of the total operating profit of the three business groups.



Managed services and Project &amp; Solution Services revenue experienced double-digit growth.



The Infrastructure Solutions Group (ISG) revenue grew 59% Y/Y to $3.94 billion, driven by solid cloud momentum and strengthening enterprise business. The segment operating margin loss improved to 0.0% versus (1.5)% Y/Y.



Intelligent Devices Group (IDG) increased 12% to $13.78 billion, driven by substantial market share gain in PC and smartphone premium sales. It marked the company&#8217;s highest PC market share in 5 years.



The PC business expanded its market leadership to almost 24.3% market share. Hybrid AI created growth opportunities for the device market, with the PC market entering a new refresh cycle and driving the smartphone market refresh cycle.



AI PC can represent ~80% of the PC industry landscape by 2027. The segment operating margin stood flat at 7.3%. Motorola&#8217;s market share is at a 5-year high, with hypergrowth in Asia Pacific and EMEA. The non-PC revenue mix during the quarter stood at over 46%.&nbsp;



Gross margin declined to 15.7% versus 16.5% a year ago due to a higher sales contribution from ISG&#8217;s cloud business, which has a lower profitability profile. The expenses-to-revenue ratio was 12.0% vs. 12.6% the prior year.&nbsp;



Net income grew by 106% Y/Y to $693 million. EPS per ADR rose to $0.0535 from&nbsp;$0.0264 a year ago.



As of December 31, 2024, cash and equivalents stood at $3.93 billion.&nbsp;



Price Action: LNVGY stock is down by 2.77% to $31.10 premarket at the last check on Thursday.



Also Read:



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Photo by Robert Way via Shutterstock

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Lenovo Group Ltd reported 20% Y/Y revenue growth in Q3, surpassing analyst estimates. All three business groups achieved double-digit growth.

Lenovo Q3 Earnings: 20% Revenue Jump, AI PCs and Smartphones Power Market Expansion - Lenovo Group (OTC:LNVGY)

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Lenovo Q3 Earnings: 20% Revenue Jump, AI PCs and Smartphones Power Market Expansion

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