The company’s third-quarter 2025 revenue came in at $18.79 billion, a record, while net income reached $693 million for 106 percent year-on-year growth. Lenovo’s revenue grew double-digits across all business groups and geographies.
Lenovo had a breakout third quarter, setting a record for infrastructure sales and extending its commanding lead of global PC sales while keeping profitability high, CEO Yuanqing Yang told investors last Thursday.
“Last quarter, our group revenue grew double-digits year on year, for the third quarter in a row,” he said. “Profit growth was even stronger as net income more than doubled year on year. Such a fantastic result is attributed to excellent performance of all core businesses.”
Headquartered in Beijing and Morrisville, N.C., Lenovo is capturing opportunities in AI, he said, including harnessing newer software models to drive higher efficiencies, on-device AI that the company introduced at its show in October, and edge AI applications. Yang said as new large language models (LLMs) are adopted, the democratization of AI is happening among users, even as deployment in the enterprise is accelerating, leading to wide overall growth.
“DeepSeek, based on our assessment, has a very positive impact for Lenovo,” he said. “It further proves that our hybrid AI has always been the right strategy and that we have been on the right path by deploying these small models for local devices … We have already said AI will exist, not just in the cloud, but on prem and at the edge. DeepSeek proves this will only accelerate.”
As the Trump administration begins with threats to increase tariffs on products made in China, Yang said Lenovo has manufacturing in India, Japan, Hungary, Germany, Mexico, and the U.S. and one planned in Saudi Arabia.
“Although we are still accessing this impact, overall I don’t think it has any significant impact to our business and future performance,” he told analysts. “Tariffs are not new to Lenovo. Many other countries have that kind of policy. So it’s not a disadvantage but probably an advantage. We have already built a very strong, unique business model… We have a global manufacturing footprint.”
The company’s third quarter 2025 revenue came in a record $18.79 billion, while net income reached $693 million for 106 percent year-on-year growth. Lenovo’s revenue grew double-digits across all business groups and geographies.
Lenovo’s Intelligent Devices Group, which includes PCs and Motorola smartphones, rose 12 percent year over year to $13.8 billion. PC revenue was up 10 percent as the PC refresh cycle began taking form and Lenovo captured an industry-leading 24.3 percent of market share. This is the biggest market share lead that Lenovo has had in five years, the firm said during the earnings call.
The company said the refresh was driven by Windows 10 end of life, gaming and premium workstation sales in commercial. The company expects the large installed base to drive sales at a premium to market, especially in gaming.
“In our dialogue with customers this (Windows 10 end of life) is getting stronger,” said Luca Rossi, president of Lenovo’s Intelligent Devices Group. “We expect the second half of calendar 2025 to see an acceleration of this vector, of this market growth. In AI PC, no matter which definition you take, we are the number one globally and we are confident that we will keep this position with innovation.”
Just like in November, PC sales to China were strong, with Lenovo’s five-feature AI PC exceeding expectations. Lenovo expects AI PCs to make up 80 percent of the PC market by 2027, as hybrid AI is creating growth across those products. Additionally, it is driving a smartphone refresh.
Smartphone revenue was up 21 percent year on year with significant gains in Asian-Pacific markets, where sales surged 155 percent as well as growth of 28 percent in EMEA, Yang said.
Lenovo plans for AI include creating AI products with more powerful computing and installing more efficient models inside devices. New form-factor innovations – such as a consumer version of its rollable screen laptop which debuted at CES 2025 – and enhancing multi-device connectivity, that bridge the gap between a cell phone and PC for a unified work experience.
Lenovo’s Infrastructure Solutions Group hit a record high of $3.9 billion in sales for 59 percent growth year on year. Yang said Lenovo’s sales with cloud solution providers hit “hypergrowth,” leaping 94 percent year on year, while enterprise and small business grew 7 percent.
“We are definitely very confident. You will not only see it grow strongly but also improve its profitability. This is the strategy we have set up for this business for many years,” Yang told investors during the question-and-answer period. “When we purchased IBM’s server business 10 years ago, it was just focused on enterprise business. There was no CSP or hyperscaler business at all. But we realized that CSP would change the landscape of the industry.”
As Lenovo annouced earlier this year, the company said its plans to buy Israeli storage vendor Infinidat. That deal remains on track and is expected to win regulatory approval in the second half of this year.
Customers across vertical industries outside of supercomputing selected Lenovo’s liquid-cooled Neptune servers for the potential 4 percent energy savings that comes with the rapid heat removal from those devices.
“It’s now being applied across various industries from automotive to electronics finance and natural resources,” said CFO Wai Ming Wong.
