Lenovo Group (HK:0992) posted a sharp increase in its fiscal first-quarter profit on Thursday, as the electronic devices maker marked a strong recovery in its PC unit, while also benefiting from artificial intelligence-fueled demand.
Lenovo’s net income for the three months to June 30 surged 108% to $505 million. On an adjusted basis, net income rose 22% to $389 million.
This was underpinned by a 22% rise in group revenue to $18.83 billion.
All three of Lenovo’s main business units clocked strong revenue growth in Q1. Its core PC business, which has been grappling with prolonged sales weakness, posted its strongest revenue growth in 15 quarters, the company said.
Lenovo is the world’s biggest PC maker by shipments, with its strong Q1 print providing positive cues for the sector.
The company’s infrastructure solutions unit marked a 36% rise in revenue, boosted chiefly by increased server demand from cloud and AI developers. But the unit clocked an operating loss for the quarter due to higher investments in scaling Lenovo’s AI capabilities.
Lenovo supplies servers to AI data centers.
Asian markets were the biggest drivers of Lenovo’s earnings, with its Asia Pacific business, excluding China, logging a 39% revenue jump, while its China revenue rose 36%.
The company flagged a positive outlook for the coming quarters, stating that its focus on AI would continue to deliver returns.
Source :
https://www.investing.com/news/stock-market-news/lenovo-q1-profit-surges-on-ai-boost-pc-recovery-4190522
