Lenovo Reports 20% Revenue Growth Thanks to AI Strategy
Lenovo, the Chinese multinational company, announced a 20% jump in its FY25 third-quarter revenue on Thursday, attributing it to its ‘hybrid-AI strategy’. The company’s revenue stood at $18.8 billion, up from $15.7 billion the year before. Net income more than doubled year-on-year to $693 million. “Lenovo’s revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses,” said Yuanqing Yang, CEO of Lenovo. “AI technology, with higher efficiency and lower costs, is accelerating the maturation of personal AI, particularly on-device AI and edge AI. It has also accelerated enterprise adoption of AI. This aligns perfectly with the direction of hybrid AI we’ve been driving and leading,” Yang added. Revenue from the company’s Infrastructure Solutions Group (ISG) increased 60% year-on-year to $3.9 billion. “Revenue from ISG’s AI server business and industry-leading Lenovo Neptune liquid cooling solutions made strong contributions in the quarter, with AI server revenue growing steadily,” said the company. Last October, Lenovo unveiled its sixth generation of liquid cooling infrastructure, the ThinkSystem N1380 Neptune, which is designed to optimise data centre performance. Lenovo claims it reduced data centre power consumption by up to 40%. Lenovo is also betting big on AI infrastructure with custom-fit data centre solutions. Scott Tease, VP and GM of AI and High-Performance Computing (HPC) at Lenovo, interacting with AIM at the sidelines of Tech World in Seattle last year, said, “We’re building exascale systems designed to be accessible to any customer, regardless of their data centre setup or size.” He also added that with Lenovo’s solutions, there’s no need to rebuild data centres or reinforce floors, as the equipment can fit through a standard 2-meter door or freight elevator. In contrast, competing solutions involve 4,000-kilogram racks that are 2.5 meters wide, exceeding typical floor support capabilities. The company also offers a full-stack AI platform called Hybrid AI, which is built in collaboration with NVIDIA and helps enterprises and organisations deploy AI-enabled solutions. Lenovo also observed a record revenue this quarter from its Solutions and Services Group (SSG), which builds the company’s Hybrid AI capabilities. “The AI solution business is gaining traction and building lighthouse cases for global customers, including delivering an enterprise AI agent platform,” the company said. Moreover, its research and development (R&D) expenses increased by 14% year-on-year. The company is a leading OEM for AI-enabled PCs with Microsoft Copilot Plus. Last December, Lenovo unveiled its new ThinkPad T14s Gen 6, powered by AMD Ryzen AI 7 PRO 360 processor. Lenovo said in its release that the device delivers 50 TOPS (trillions of operations per second) of AI processing power, enabling advanced data analysis, real-time machine learning, and enhanced productivity for the modern workforce. The company also developed a suite of AI features called Moto AI, which is aimed towards the smartphones that its subsidiary Motorola develops. According to rumours, Lenovo is also set to announce a ThinkBook Flip AI PC, which showcases a rollable and foldable OLED display.
The company’s net income more than doubled year-on-year to $693 million.
The company’s net income more than doubled year-on-year to $693 million.  
["AI (Artificial Intelligence)", "Fiscal Earnings", "Lenovo"]
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["AI", "machine learning", "Aim", "edge AI", "R", "GAN", "ViT", "mlops_tools:Neptune", "programming_languages:R", "emerging_tech:edge AI"]
Supreeth is an engineering graduate who is curious about the world of artificial intelligence and loves to write stories on how it is solving problems and shaping the future of humanity.