Q2 FY24/25 performance:
- SSG extended its double-digit revenue growth streak to 14 straight quarters, with revenue of US$2.2 billion and an operating margin of 20%.
- Revenue mix from managed services and project and solutions services grew three points year-on-year to account for nearly 60% of SSG’s revenue.
- Hero offerings such as Digital Workplace Solutions, Hybrid Cloud, and Sustainability Solutions also delivered strong growth.
Opportunities and Sustainable Growth:
- The global IT services market is expected to see steady double-digit growth over the next three years, with AI services growing more than twice as fast as the market to become the primary driver of the IT services market.
- Lenovo will continue to embed AI in its key offerings, such as Digital Workplace Solutions, Hybrid Cloud and Sustainability solutions.
- SSG will develop more AI native services for customers to adopt AI use cases and capture hybrid AI opportunities.
ESG and corporate highlights
Achievements, announcements, and notable commitments over the past quarter include:
- Lenovo has been ranked #1 on Fast Company’s sixth annual list of the 100 best places to work for innovators, and also topped the list of companies in the artificial intelligence and robotics category.
- ESG accolades and highlights include joining the European Commission’s AI Pact, maintaining a strong rating in the 2024 Hang Seng Corporate Sustainability Index where the Group received the highest environmental score in the IT industry, and achieving Ambassador status in the 2024 Workplace Pride Global Benchmark.
- Lenovo recently named Ashley Gorakhpurwalla to lead the Infrastructure Solutions Group. Ashley joined on November 11th following executive roles at Western Digital, Dell, and Compaq.
[1] Non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges, impairment of intangible assets; and the corresponding income tax effects, if any.
About Lenovo
Lenovo is a US$57 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world’s largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo’s continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.
LENOVO GROUP LIMITED |
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FINANCIAL SUMMARY |
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For the quarter ended September 30, 2024 |
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(in US$ millions, except per share data) |
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|
|
|
|
|
Revenue |
|
17,850 |
14,410 |
24% |
Gross profit |
|
2,796 |
2,522 |
11% |
Gross profit margin |
|
15.7% |
17.5% |
(1.8) pts |
Operating expenses |
|
(2,145) |
(2,008) |
7% |
R&D expenses
|
|
(548) |
(498) |
10% |
Expenses-to-revenue ratio |
|
12.0% |
13.9% |
(1.9) pts |
Operating profit |
|
651 |
514 |
27% |
Other non-operating income/(expenses) - net |
|
(178) |
(156) |
13% |
| Pre-tax income |
|
473 |
358 |
32% |
| Taxation |
|
(90) |
(69) |
31% |
| Profit for the period |
|
383 |
289 |
33% |
| Non-controlling interests |
|
(24) |
(40) |
(38)% |
| Profit attributable to equity holders |
|
359 |
249 |
44% |
| Profit attributable to equity holders- non-HKFRS [1] |
|
404 |
273 |
48% |
|
EPS (US cents)
|
|
|
|
|
