LENOVO-GROUP
Lenovo Group (HKSE: 992) (PINK SHEETS: LNVGY) today announced record Group revenue in the second quarter of US$14.5 billion, up 7% year-on-year and with all businesses showing strong growth. Profit showed even stronger growth, with record pre-tax income of US$470 million, up 52% compared to the same quarter a year earlier, while net income also increased by 53% year-on-year to a record US$310 million. In addition to record quarterly results, Lenovo’s financial strength and sustainability has been further validated recently with strong inaugural investment grade ratings from Moody’s, Standard & Poor’s and Fitch, and a successful global notes offering .
Basic earnings per share for the second quarter were 2.59 US cents or 20.08 HK cents. Lenovo’s Board of Directors declared an interim dividend of 6.6 HK cents per share.
“Our record results this quarter reflect our ongoing commitment to meeting the needs of the rapidly growing work-, learn-and play-from-home economy. All of our core businesses delivered year-on-year growth, while our Software and Services revenue grew to a new record,” said Yuanqing Yang, Lenovo Chairman and CEO. “As the world continues to adjust to the ‘new normal’, we are confident in the long-term growth potential of both devices and cloud infrastructure. We will continue to leverage our core competences of operational excellence and global/local footprint, while accelerating our service-led transformation to better grasp opportunities and drive sustainable growth.”
Business Outlook
2020 continues to be a year with multiple industry factors impacting supply and manufacturing, including the ongoing geo-political uncertainties, the global COVID-19 pandemic, and industry-wide component supply shortages driven by strong demand. However, Lenovo sees a positive outlook for the second half of the year, with the new global norm of work, learn and play from home driving long-term growth trends in device demand and cloud/infrastructure requirements. In particular, the Group expects the total PC market to grow well beyond current analyst forecasts to closer to 300 million units in calendar year 2020, around 25 million more than the total available market last year.
Business Group Overview
Lenovo’s Intelligent Devices Group (IDG) continues to lead the Group’s growth with all-time record revenue for the PC and Smart Devices Group (PCSD) of US$11.5 billion, up 8% year-on-year. It reported record PTI of US$723 million, showing growth of 18% year-on-year, and maintained an industry-leading profit margin of 6.3%. Lenovo’s operational capability, timely response to the work and learn from home trend and focus on high-growth and premium segments drove the record quarterly performance. Lenovo leads the global PC market with #1 market share of 23.6%.
IDG’s second business unit, the Mobile Business Group (MBG) , had revenue growth of 39% quarter-to-quarter and returned to year-on-year growth, continuing the strong recovery from the impact of COVID-19. Growth in the company’s stronghold markets of Latin America and North America was further solidified, while growth in Europe and Asia Pacific was accelerated. The quarter also saw key innovation milestones with the launch of the razr 5G foldable smartphone and the company’s first dedicated gaming phone under the Lenovo Legion brand. The business will continue to leverage its strong product portfolio and 5G innovation to drive future profitable growth.
The Data Center Group (DCG) saw continued growth. Revenue grew 11% year-on-year to $1.48 billion, with improved profitability. The Cloud Service Provider segment continued to grow, with revenue increasing 34% year-on-year, with strong growth across all geographies. Underpinning this result is Lenovo’s sustained investment in in-house design and manufacturing, which delivered a major motherboard and system design win. Revenue in the Enterprise and SMB was close to flat year-on-year but outperformed the market forecast by 3 points. It saw double-digit growth across the business in Software Defined Infrastructure (22%), Storage (15%), Software (47%) and Services (11%). An additional growth area for the segment is Lenovo’s recently announced partnership with SAP . Lenovo’s TruScale Infrastructure-as-a-Service combined with SAP HANA Enterprise Cloud enables customers to keep their sensitive data on-premises and secure, with the flexibility of pay-as-you-go consumption model.
Lenovo’s Intelligent Transformation saw strong momentum in Q2, with double-digit growth in all its segments. The results demonstrate its significance as a long-term growth catalyst for the Group. Smart Internet of Things saw strong growth of over 36% year-on-year, while Smart Infrastructure (21%) and Smart Verticals (72%) both delivered strong double-digit revenue* growth. Software and Services grew 39% year-on-year to a new record of US$1.2 billion*, now representing more than 8.5% of Group revenue, even as total Group revenue increases. Lenovo’s Attached Service and Software, Managed Service and Solutions also saw fast growth and E-commerce revenue grew by over 40% year-on-year.
* invoiced revenue
About Lenovo
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$50 billion Fortune Global 500 company, with 63,000 employees and operating in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. By designing, engineering and building the world’s most complete portfolio of smart devices and infrastructure, we are also leading an Intelligent Transformation – to create better experiences and opportunities for millions of customers around the world. To find out more visit https://www.lenovo.com , follow us on LinkedIn , Facebook , Twitter , YouTube , Instagram , Weibo and read about the latest news via our StoryHub .
View source version on businesswire.com: https://www.businesswire.com/news/home/20201102006093/en/
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Kioxia Develops Core Technology that Will Allow the Practical Implementation of High-density, Low-power 3D DRAM12.12.2025 06:24:00 CET | Press release
Showcase the technology of highly stackable oxide-semiconductor channel transistors Kioxia Corporation, a world leader in memory solutions, today announced the development of highly stackable oxide-semiconductor channel transistors that will enable the practical implementation of high-density, low-power 3D DRAM. This technology was presented at the IEEE International Electron Devices Meeting (IEDM) held in San Francisco, USA, on December 10, and has the potential to reduce power consumption across a wide range of applications, including AI servers and IoT components. In the era of AI, there is growing demand for DRAM with larger capacity and lower power consumption that can process large amounts of data. Traditional DRAM technology is reaching the physical limits of memory cell size scaling, prompting research into the 3D stacking of memory cells to provide additional capacity. The use of single-crystal silicon as the channel material for transistors in stacked memory cells, as is the
Andersen Global styrker sine juridiske kapaciteter med tilføjelsen af brasiliansk medlemsfirma11.12.2025 18:49:00 CET | Pressemeddelelse
Andersen Global udbygger sin juridiske platform i Brasilien, da Lotti e Araújo bliver et medlemsfirma, hvilket styrker organisationens kapacitet i Latinamerika. Lotti e Araújo blev stiftet for over 20 år siden og tilbyder omfattende juridisk rådgivning til brasilianske og multinationale klienter inden for en lang række brancher. Dets tværfaglige praksis omfatter selskabsret, skatteret, arbejdsret, retssager, inkasso og inddrivelse af gæld – samt specialiseret arbejde med at identificere skjulte aktiver og inddrive anke- og retsindskud i ældre sager. Firmaet håndterer også voldgift, forvaltningsret, udenlandske investeringer, fast ejendom, intellektuel ejendomsret, databeskyttelse og virksomhedsomstrukturering og tilbyder juridisk assistance inden for selskabsdannelse og repræsentation over for tilsynsmyndigheder. Teamet rådgiver klienter om forebyggende juridiske strategier og komplekse tvister for administrative organer og domstole i Brasilien. "Hos Lotti e Araújo bygger vores praksis
BEYOND Developments Reveals a New Vision for Purposeful Living on Dubai Islands with SIORA11.12.2025 18:02:00 CET | Press release
A 2M sqft masterplan inspired by Japanese garden principles, crafted around balance, clarity, and the quiet rhythm of coastal life BEYOND Developments, the bold and design-led real estate developer shaping next-generation waterfront destinations in the UAE, today unveiled SIORA, its first beachfront masterplan on Dubai Islands and the company’s second large-scale community within a year. The launch underscores BEYOND’s accelerated growth and strong alignment with Dubai’s future urban vision. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251211014389/en/ BEYOND Developments - SIORA Masterplan at sunset - Dubai Islands (Photo: AETOSWire) Spanning over 2M square feet, SIORA is conceived as a coastal sanctuary inspired by Japanese garden philosophies, including the pursuit of Ikigai, the Japanese concept of finding purpose and fulfilment in everyday life. In this context, it reflects a philosophy of creating spaces that bring c
3Degrees Welcomes David Dines to Board of Directors11.12.2025 17:00:00 CET | Press release
3Degrees, a global leader in renewable energy and climate solutions, is pleased to announce the appointment of David Dines to its Board of Directors, effective December 8, 2025. Dines brings more than four decades of leadership experience across global energy, commodities, financial services, transportation, and industrial markets. He served on the executive team as Chief Financial Officer and Corporate Senior Vice President at Cargill, Inc., the largest privately held company in the United States, where he oversaw enterprise-wide financial strategy, capital deployment, and financial performance. During his 29-year career at Cargill, Dines led multiple global businesses, played key roles in major technology and process transformations, and was a member of Cargill’s Commodity Risk, Financial Risk, and Process, Data, and Technology Committees. “We are thrilled to welcome David to the 3Degrees board,” said Philippe Vedrenne, CEO, 3Degrees. “He has an exceptional command of financial stewa
ITC Infotech wins PTC Partner Network Award for FY25 in the PLM Category11.12.2025 15:40:00 CET | Press release
ITC Infotech’s DxP Services earns recognition for its strong PLM expertise, unwavering commitment to delivering customer value, and strategic collaboration with PTC to drive innovation through SaaS-led offerings and accelerate digital transformation for customers. ITC Infotech, a leading global technology services and solutions provider, has been awarded the PTC Partner Network Award for FY25 in the Product Lifecycle Management (PLM) category. This prestigious recognition, awarded to a single partner globally, celebrates excellence in deploying Enterprise PLM software, enabling global and cross-functional teams to effectively manage product data and providing a trusted system for product information. The award underscores ITC Infotech’s leadership in PLM-led digital transformation, as well as its strategic alignment with PTC’s Intelligent Product Lifecycle vision, which helps customers build a structured product data foundation that serves as the backbone for AI-driven transformation.
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom