Investing.com-- Lenovo Group (HK:0992) said on Thursday that its third-quarter profit more than doubled, bolstered by robust demand for its AI-driven product lines and strong performances from all major business units.
The world’s largest maker of personal computers posted profit attributable of $693 million for the quarter ended Dec. 31, a 106% surge from $337 million a year earlier, aided in part by a one-time income tax credit of $282 million.
Revenue rose 20% to $18.8 billion, marking its highest quarterly sales in three years, driven by double-digit growth across all three of Lenovo’s business groups.
Lenovo credited advances in AI technology, particularly Hybrid AI solutions, for driving efficiency and new business opportunities.
Hong Kong-listed Lenovo shares rose 2.1% to HK$12.84 as of 04:36 GMT.
"Despite geopolitical tensions affecting the technology sector, the Group’s business has demonstrated remarkable resilience. Its success in navigating market challenges is attributed to its strategic expansion into the Middle East, further enhancing its extensive global manufacturing footprint," the company said in a statement.
Last year, Lenovo had issued $2 billion worth of zero-coupon convertible bonds to Alat, a state-owned Saudi Arabian tech company, and signed a collaboration agreement to set up a manufacturing facility there.
Lenovo’s Infrastructure Solutions Group (ISG) saw revenue soar 59% year-on-year, fueled by rising cloud demand, while the Intelligent Devices Group (IDG) posted a 12% increase in sales, supported by premium PC and smartphone sales.
The Solutions and Services Group (SSG) continued its growth streak, with revenue climbing 12% for its fifteenth consecutive quarter, achieving a 20% operating margin, the company reported.
Looking ahead, Lenovo struck a bullish tone, emphasizing its strategic focus on AI innovation and cloud expansion.
Lenovo expects its AI investments and growing market share in PCs, smartphones, and cloud services to fuel further growth, even amid global economic uncertainties.