Lenovo delivers 10th straight quarter of improved profitability

Lenovo Group announced on Wednesday that its profitability was improving year-on-year for the 10th consecutive quarter, as its net income from July to September grew 6 percent year-on-year to $541 million (3.9 billion yuan).

Lenovo said its revenue also grew to $17.1 billion, up 3 percent year-on-year in constant currency, as its non-PC business achieved a robust performance despite challenges.

Yang Yuanqing, chairman and CEO of Lenovo, said, "Our non-PC businesses are gaining momentum and now represent more than 37 percent of our revenue. Both solutions and services business and infrastructure business saw high double-digit revenue growth year on year."

"For Lenovo, these results prove that our strategic foresight, operational resilience, and consistent investment in diversified growth engines, have prepared us well for challenging times. Whether our traditional markets are booming or contracting, Lenovo consistently delivers on its commitments and outperforms market expectations," Yang said.

According to Lenovo, all main businesses contributed positive operating profit, demonstrating further progress towards the company's goal of doubling profitability in the medium-term. Lenovo also highlighted that its healthy cash balance means it remains committed to doubling investments in research and development in the medium-term, having grown R&D spending 15 percent year-on-year in the quarter.

While current external challenges persist, Lenovo said it remains agile and focused on pursuing its strategy and ensuring ongoing profitability by rebalancing resources towards its diversified growth engines and driving efficiencies and expense reduction through the business.