Lenovo India Posts Strong Q2 Growth with 23% Revenue Surge
Lenovo India reported impressive second-quarter results, with revenue climbing 23% year-on-year to reach USD 1.2 billion. The strong performance was driven by increased digitization, premium product demand, and improved consumer sentiment following GST reforms.
Key Takeaways
- Lenovo India revenue hits USD 1.2 billion in Q2, up 23% year-on-year
- Global Lenovo Group reaches record USD 20.5 billion revenue
- AI-related revenue now accounts for 30% of total group revenue
- All business segments show strong growth across retail, MSME, and enterprise customers
Strong Performance Across Business Segments
Shailendra Katyal, Vice President and Managing Director of Lenovo India, attributed the company’s success to India’s growing importance as a digital capability hub. He emphasized that Lenovo is leveraging its extensive install base to capitalize on hybrid AI opportunities.
“Lenovo India recorded a strong quarter across all business groups, with Q2 FY25/26 revenue growing 23% year-on-year to USD 1.2 billion. We have seen a good demand view in India for all our categories with higher digitisation trends, premiumisation and improved consumer sentiment on GST stimulus. Our robust performance was driven by the strong adoption of our end-to-end AI-powered technology solutions among both retail, MSME, and enterprise customers,” Katyal shared with PTI.
Global Performance and AI Growth
At the global level, Lenovo Group achieved an all-time high revenue of USD 20.5 billion, representing 15% year-on-year growth. However, net income saw a 5% decline to USD 340 million.
The company’s AI-focused strategy showed significant results, with AI-related revenue increasing by 13 percentage points year-on-year to account for 30% of total revenue. This growth was powered by strong performance in AI servers, AI PCs, AI smartphones, and AI services.
“Capitalising on the AI democratisation trend, and thanks to our clear strategy, operational excellence and relentless innovation, Lenovo delivered another quarter of record performance, while making important progress in both personal AI and enterprise AI.”We will continue to leverage our unique global/local model to navigate uncertainties and capture the tremendous hybrid AI opportunities, and in doing so not only deliver sustainable long-term returns to our shareholders, but also make AI truly personalised for every individual and every enterprise,” Lenovo Group CEO Yuanqing Yang said.
Business Group Performance
Intelligent Devices Group: Recorded USD 15.1 billion revenue, up nearly 12% year-on-year, with the PC business increasing global market share to 25.6%. AI PCs represented 33% of all Lenovo PC shipments.
Infrastructure Solutions Group: Reported 24% revenue growth to USD 4.1 billion, contributing significantly to Lenovo’s hybrid infrastructure strategy.
Solutions and Services Group: Achieved 18% revenue growth to USD 2.6 billion, supported by double-digit gains in support services.
