Lenovo Group announced record quarterly results for the Group, with historic highs for both profit and revenue and the Group’s first US$20 billion quarter. The company’s focus on innovation and profitability, supported by its operational excellence, has helped it navigate wider industry supply challenges and delivered rapid growth and profitability across all key business groups and geographies.
Lenovo’s performance delivered significant year-on-year improvements. Net income grew at a rate of over 50% for the 6th consecutive quarter, with Q3 growing 62% year-on-year to a record US$640 million. Net income margin improved by nearly one point, on track towards the Group’s goal of doubling in three years. Pre-tax income was a record US$855 million, up 45% year-on-year, and Group revenue continued its strong growth trajectory hitting a record US$20.1 billion, up 17% year-on-year.
Lenovo continues to invest significantly in innovation, with R&D expenses for the quarter up 38% year-on-year, as part of the company’s wider commitment to double R&D investment over three years. Investments are aligned to driving Lenovo’s ongoing transformation to a solutions and services company, by developing technologies focused on the “New IT” full stack architecture of “Client-Edge-Cloud-Network-Intelligence”. Looking ahead, the company remains focused on its 3S strategy (Smart devices/IoT, Smart Infrastructure, Smart Verticals) seeing continued opportunities for sustainable growth and profitability improvements across all areas of the business, keeping it on track to double net margin by the end of FY 2023/2024.
