Lenovo Q2 revenue jumps 24% on premium PC sales, AI push

Reuters11-15
UPDATE 1-Lenovo Q2 revenue jumps 24% on premium PC sales, AI push

Adds details paragraphs 4-9

BEIJING, Nov 15 (Reuters) - Lenovo 0992.HK posted a 24% revenue rise in its fiscal second quarter from a year earlier, spurred partly by sales growth for computers that can handle artificial intelligence workloads as the global personal computer industry showed signs of recovery.

The Chinese technology company reported revenue of $17.9 billion for the quarter ended Sept. 30, exceeding analysts' expectations of $16.0 billion, according to LSEG data.

Net profit reached $359 million, compared with analysts' estimates of $331.7 million.

Lenovo's global PC shipments rose 3% to 16.5 million units in the September quarter, maintaining its commanding 24% market share. Across the industry, global PC shipments fell 2.4% from a year earlier, according to research firm IDC.

Demand for AI-capable computers has emerged as a key growth driver for the PC industry, with manufacturers racing to launch models equipped with specialised chips for artificial intelligence applications.

Lenovo, which unveiled two AI-powered PC models in May, expects AI PCs to make up 10% of its shipments by the end of 2024, rising to as much as 60% by 2026, Chairman Yang Yuanqing said earlier this year.

Lenovo has positioned itself to benefit from the AI trend by expanding its AI server and software businesses.

The company's Infrastructure Solutions Group, made up of IT solutions including servers, saw revenue in the September quarter grow by more than 60% from a year earlier, driven partly by strong demand for servers handling AI workloads in data centres.

Its Solutions and Services Group, which includes cloud-based software offerings for enterprise clients, posted revenue of $2.2 billion, up from $1.9 billion a year earlier.

(Reporting by Liam Mo and Brenda Goh; Editing by Lincoln Feast and Cynthia Osterman)

((liam.mo@thomsonreuters.com;))

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