Lenovo delivers ninth straight quarter of improved revenue

Chinese tech titan Lenovo Group Ltd delivered its ninth straight quarter of improved revenue and profitability as diversified new growth drives sustained strong performance.

The results came despite the fact that the world's biggest PC maker saw sales of the devices decline after a pandemic-fueled boom. The results showcase its progress in developing non-PC businesses such as smartphones, servers and information technology services.

Lenovo said its net income in the June quarter grew 11 percent year-on-year to $516 million and its revenue grew to $17 billion, up 5 percent year-on-year in constant currency.

According to the company, its revenue from non-PC businesses reached 37 percent, demonstrating that its services-led transformation strategy and persistent investments in diversifying the business have paid off and is driving future growth opportunities.

These new growth initiatives of solutions and services, infrastructure solutions, and mobile businesses all helped to grow revenue by double digits year-on-year – contributing to both topline growth and Lenovo's wider commitment to double profitability in the midterm.

Yang Yuanqing, Lenovo chairman and CEO, said "Although external challenges may persist in the short-term, the digitalization trend continues to accelerate, and the hybrid work model is here to stay. We have confidence in capturing these opportunities and will continue to invest, innovate, and deliver sustainable growth and profitability improvements."

The company said it is committed to doubling investments in research and development and grew R&D spending 10 percent year-on-year and increased R&D headcount by 29 percent year-on-year.