Lenovo Delivers Record Results, Fueled by Strong Q2 Growth Across All Business Groups
3.11.2020 07:34:00 EET | Business Wire | Press release
Lenovo Group (HKSE: 992) (PINK SHEETS: LNVGY) today announced record Group revenue in the second quarter of US$14.5 billion, up 7% year-on-year and with all businesses showing strong growth. Profit showed even stronger growth, with record pre-tax income of US$470 million, up 52% compared to the same quarter a year earlier, while net income also increased by 53% year-on-year to a record US$310 million. In addition to record quarterly results, Lenovo’s financial strength and sustainability has been further validated recently with strong inaugural investment grade ratings from Moody’s, Standard & Poor’s and Fitch, and a successful global notes offering.
Basic earnings per share for the second quarter were 2.59 US cents or 20.08 HK cents. Lenovo’s Board of Directors declared an interim dividend of 6.6 HK cents per share.
“Our record results this quarter reflect our ongoing commitment to meeting the needs of the rapidly growing work-, learn-and play-from-home economy. All of our core businesses delivered year-on-year growth, while our Software and Services revenue grew to a new record,” said Yuanqing Yang, Lenovo Chairman and CEO. “As the world continues to adjust to the ‘new normal’, we are confident in the long-term growth potential of both devices and cloud infrastructure. We will continue to leverage our core competences of operational excellence and global/local footprint, while accelerating our service-led transformation to better grasp opportunities and drive sustainable growth.”
Business Outlook
2020 continues to be a year with multiple industry factors impacting supply and manufacturing, including the ongoing geo-political uncertainties, the global COVID-19 pandemic, and industry-wide component supply shortages driven by strong demand. However, Lenovo sees a positive outlook for the second half of the year, with the new global norm of work, learn and play from home driving long-term growth trends in device demand and cloud/infrastructure requirements. In particular, the Group expects the total PC market to grow well beyond current analyst forecasts to closer to 300 million units in calendar year 2020, around 25 million more than the total available market last year.
Business Group Overview
Lenovo’s Intelligent Devices Group (IDG) continues to lead the Group’s growth with all-time record revenue for the PC and Smart Devices Group (PCSD) of US$11.5 billion, up 8% year-on-year. It reported record PTI of US$723 million, showing growth of 18% year-on-year, and maintained an industry-leading profit margin of 6.3%. Lenovo’s operational capability, timely response to the work and learn from home trend and focus on high-growth and premium segments drove the record quarterly performance. Lenovo leads the global PC market with #1 market share of 23.6%.
IDG’s second business unit, the Mobile Business Group (MBG), had revenue growth of 39% quarter-to-quarter and returned to year-on-year growth, continuing the strong recovery from the impact of COVID-19. Growth in the company’s stronghold markets of Latin America and North America was further solidified, while growth in Europe and Asia Pacific was accelerated. The quarter also saw key innovation milestones with the launch of the razr 5G foldable smartphone and the company’s first dedicated gaming phone under the Lenovo Legion brand. The business will continue to leverage its strong product portfolio and 5G innovation to drive future profitable growth.
The Data Center Group (DCG) saw continued growth. Revenue grew 11% year-on-year to $1.48 billion, with improved profitability. The Cloud Service Provider segment continued to grow, with revenue increasing 34% year-on-year, with strong growth across all geographies. Underpinning this result is Lenovo’s sustained investment in in-house design and manufacturing, which delivered a major motherboard and system design win. Revenue in the Enterprise and SMB was close to flat year-on-year but outperformed the market forecast by 3 points. It saw double-digit growth across the business in Software Defined Infrastructure (22%), Storage (15%), Software (47%) and Services (11%). An additional growth area for the segment is Lenovo’s recently announced partnership with SAP. Lenovo’s TruScale Infrastructure-as-a-Service combined with SAP HANA Enterprise Cloud enables customers to keep their sensitive data on-premises and secure, with the flexibility of pay-as-you-go consumption model.
Lenovo’s Intelligent Transformation saw strong momentum in Q2, with double-digit growth in all its segments. The results demonstrate its significance as a long-term growth catalyst for the Group. Smart Internet of Things saw strong growth of over 36% year-on-year, while Smart Infrastructure (21%) and Smart Verticals (72%) both delivered strong double-digit revenue* growth. Software and Services grew 39% year-on-year to a new record of US$1.2 billion*, now representing more than 8.5% of Group revenue, even as total Group revenue increases. Lenovo’s Attached Service and Software, Managed Service and Solutions also saw fast growth and E-commerce revenue grew by over 40% year-on-year.
* invoiced revenue
About Lenovo
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$50 billion Fortune Global 500 company, with 63,000 employees and operating in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. By designing, engineering and building the world’s most complete portfolio of smart devices and infrastructure, we are also leading an Intelligent Transformation – to create better experiences and opportunities for millions of customers around the world. To find out more visit https://www.lenovo.com, follow us on LinkedIn , Facebook, Twitter, YouTube, Instagram, Weibo and read about the latest news via our StoryHub.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201102006093/en/
Contact information
Press Contacts
Hong Kong – Angela Lee,
angelalee@lenovo.com, +852 2516 4810
London – Charlotte West, cwest@lenovo.com, +44 7825 605720
Zeno Group - LenovoWWcorp@zenogroup.com
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
58% of Consumers Say They Don't Care Whether a Product is a National Brand or Private Label. They Just Buy What They Need21.8.2026 13:00:00 EEST | Press release
As fast-moving consumer goods (FMCG) prices rose 26% globally between 2021 and 2025, consumers have become more deliberate about where they save and where they spend. NielsenIQ (NYSE: NIQ) has released new findings showing that private label is no longer viewed simply as a lower-cost substitute, but as a credible competitor across value, mainstream, and premium segments. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260819950224/en/ Private label is no longer just a value play. The findings, published in NIQ’s latest report, A Tale of Two Consumers: The Polarized Mindsets Reshaping Global Consumption, created in collaboration with World Data Lab, show how consumer polarization is redefining value and reshaping competition on the shelf. The report also draws on insights from NIQ's 2025reportFinding Harmony on the Shelfwhich documented changing perceptions of private label products. Key findings from these reports include: 58
Tanium Reappoints Co-Founder Orion Hindawi as CEO to Drive Next Chapter of Growth20.8.2026 22:10:00 EEST | Press release
Tanium, a leader in Autonomous IT, today announced that Co-Founder and Executive Chairman Orion Hindawi has been appointed Chief Executive Officer, effective immediately. Dan Streetman is stepping down as CEO and as a member of the Board after leading Tanium for the last three years, during which time Tanium scaled its go-to-market operations and secured strong industry analyst recognition for innovation within the Tanium platform. Streetman will continue to advise Tanium as part of the transition and co-founder David Hindawi will return to the role of Chairman of the Board. With this foundation in place, this transition positions Tanium to deepen its Autonomous IT capabilities and further expand AI offerings across its portfolio and strengthen customer and partner engagement. The Hindawis co-founded Tanium in 2007 to build the central nervous system of enterprise security, giving organizations unified visibility and control over their endpoints. During his prior tenure as CEO from 201
PCI Energy Solutions to Join Mitsubishi Electric, Reinforcing Long-Term Commitment to Customers, Employees, and the Energy Industry20.8.2026 20:46:00 EEST | Press release
PCI Energy Solutions ("PCI"), a leading U.S.-based provider of enterprise software for energy management and optimization, announced today that it has entered into a definitive agreement to be acquired by Mitsubishi Electric Corporation. The agreement was executed on August 20, 2026 (Japan Standard Time). The Transaction represents a strong endorsement of PCI's business, technology, employees, customer relationships and position in the energy industry. Mitsubishi Electric intends to retain PCI's core management team following completion of the Transaction, enabling PCI to preserve leadership continuity, industry expertise and its customer-focused operating model while benefiting from Mitsubishi Electric's global scale, complementary capabilities and long-term investment capacity. The agreement has been signed, but the Transaction has not yet closed. PCI and Mitsubishi Electric will continue to operate as separate companies until closing, which is subject to applicable regulatory approv
Perma-Pipe Secures More Than $67 Million in New Orders in the Second Quarter of 202620.8.2026 20:02:00 EEST | Press release
Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH), a global leader in engineered piping and corrosion protection solutions, today announced that the Company secured more than $67 million in new orders during the second quarter of fiscal 2026, representing strong demand across its strategically important end-markets and geographies. The orders further strengthen Perma-Pipe's backlog and provide increased visibility into future revenue growth. The Company's backlog remains well diversified across geographies, customers and end-markets. The Company continued to see strong demand across its core Oil & Gas and infrastructure markets, while also securing important new business in emerging applications, including advanced leak detection and monitoring solutions. During the quarter, Perma-Pipe secured sizable Oil & Gas awards in both MENA and Canada, reinforcing the Company's position as a trusted supplier to customers undertaking significant energy infrastructure investments. The Company
Impartner Launches the First CPQ Built for Partners20.8.2026 16:00:00 EEST | Press release
Impartner, the leading partner revenue orchestration platform, today announced the launch ofImpartner CPQ, giving partners a direct path to create and advance quotes within the Impartner PRM platform. The new capability enables faster movement from opportunity to submission while giving vendors control over the rules, products, pricing, and approvals that govern each transaction. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260820479441/en/ Give partners a faster path from opportunity to quote with Impartner's CPQ. For many partnership programs, quoting remains a largely manual process. Partners often depend on vendor sales teams to prepare quotes because traditional CPQ systems are designed primarily for direct sellers or require additional licensing for external users. The result is a slower path from opportunity to revenue, increased administrative work for channel teams, and a partner experience that can limit the impa
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom