Lenovo Group Reports 44% Profit Increase in September Quarter

Investing.com– Lenovo Group (HK:0992) clocked a sharp jump in its profit for the September quarter as the PC maker saw strong demand for its devices and its tech infrastructure offerings from the artificial intelligence sector.

Lenovo’s profit attributable to shareholders rose 44% to $359 million in the three months to September 30, the firm said in a statement.

This was on a revenue of $17.85 billion, up 24% from last year.

Lenovo said all three of its core sectors logged strong revenue growth, citing increased demand for its AI offerings. This was particularly seen in its Infrastructure Solutions Group unit, which benefited from more companies setting up AI infrastructure.

Asia accounted for a bulk of its revenue growth, with revenue in China growing 26% over the past six months.

Lenovo’s device sales, which have been laggard in recent quarters, picked up on demand for AI-equipped PC models. Gaming PC sales also benefited from strong game launches during the quarter, especially Black Myth: Wukong.

The firm said it will continue to lean into its AI offerings across all three of its main business sectors, but flagged higher costs as it ramped up its investment in the rapidly growing industry.