LENOVO GROUP (00992) released its third quarter performance, with revenue increasing by 18% year-on-year to $22.2 billion, and revenue related to artificial intelligence growing by 72% year-on-year.

LENOVO GROUP (00992) announced that as of the end of the third quarter of 2025, the Group achieved solid financial performance. The Group's revenue increased by 18% year-on-year, reaching a record high of $22.2 billion, with double-digit growth in revenue for all three business groups. Revenue from artificial intelligence-related activities increased by 72% year-on-year, accounting for 32% of the Group's total revenue. Adjusted net profit attributable to equity holders reached $589 million for the quarter, a 36% increase year-on-year, doubling the growth rate of revenue. Reported net profit attributable to equity holders was $546 million. Major adjustments included one-time restructuring costs of $285 million, tax credits of $45 million, non-cash fair value gains of $186 million from warrants, nominal interest of $29 million from convertible bonds, and other non-cash adjustments of $40 million. The Infrastructure Solutions Business Group, Solution Services Business Group, and Smart Devices Business Group all achieved strong quarterly performance. The Smart Devices Business Group maintained its leading position in the global personal computer market, further widening the gap with the second-ranked competitor. Over the past thirty years, the Group has been the only personal computer supplier to have market share exceeding 25% for two consecutive quarters globally. Sales and activations of Motorola smartphones reached historic highs, with revenue growth in major sales regions surpassing the market average. The Infrastructure Solutions Business Group achieved record quarterly revenue of $5.2 billion in the third quarter, showing improvement from the previous quarter. Demand for AI servers remained strong, with high double-digit revenue growth and strong project backlog of $15.5 billion. Additionally, the Infrastructure Solutions Business Group expanded its customer base, driving record high revenue in cloud infrastructure business. Revenue from Neptune liquid cooling saw super-fast growth. The Solution Services Business Group maintained strong growth momentum, with revenue growing by 18% year-on-year, marking the 19th consecutive quarter of double-digit revenue growth. Operating profit margin reached 22.5%, nearing historical highs. Benefitting from accelerated growth of TruScale device-as-a-service and infrastructure-as-a-service, as well as significant customer expansion, the share of operations services and projects and solutions in the total revenue of the Solution Services Business Group increased to 59.9%. In the enterprise intelligence sector, the Group has long been a leader in high-performance computing, covering infrastructure, data, and comprehensive services and solutions, enabling sustainable growth throughout the full value chain of the artificial intelligence industry. Thanks to strong revenue growth and strict operational cash management, operating cash flow for the third quarter reached $952 million. Free cash flow increased to $451 million, providing solid support for the growth plans and capital expenditures of all business groups. Adjusted net financial costs decreased year-on-year, reflecting effective working capital and operational cash management, as well as lower market interest rates.