Lenovo announces Q4 and full year financial results

Yuanqing Yang,Chairman and CEO - LENOVO

Lenovo announced Q4 and full-year results for fiscal year 2023/24, showing significant growth. In Q4, the Group’s revenue grew nearly 10% year-on-year to US$13.8 billion, with net income doubling to US$248 million. Non-PC revenue reached a record high of 45%. For the full fiscal year, Lenovo reported US$56.9 billion in revenue and US$1 billion in net income. The Group’s strong second-half performance, with a 6% year-on-year revenue growth, highlights its successful navigation of industry challenges and capitalizing on AI growth opportunities.

The Group is leading in an era of unprecedented AI opportunities with its pocket-to-cloud portfolio, strong ecosystem and partnerships, and full-stack AI capabilities. Since announcing its AI strategy in October 2023 at its annual Tech World event, Lenovo has launched its first wave of AI PCs as well as AI capabilities covering other smart devices, smart infrastructure, and smart solutions and services. The Group expects the AI PC – which is defined as equipped with a personal AI agent based on natural interactions, heterogeneous computing, personal knowledge base, connected to an open AI application ecosystem, and with privacy and security protection – to grow from its current premium position to mainstream over the next three years, driving a new refresh cycle for the industry. Hybrid AI is also driving greater demand for AI infrastructure and customers are increasingly asking for customized AI solutions and services, particularly consulting, design, deployment and maintenance of AI.

Lenovo’s continued commitment and investment in innovation, focused on its anchor technologies of AI and computing, is helping it realize its vision of ‘Smarter AI for All’ and further lead in the AI era. In the past fiscal year, the Group achieved a record high percentage for both R&D headcount at 26.2%, as well as a R&D expense to revenue ratio of 3.6%.

Looking ahead, the Group is encouraged by its performance and momentum in the 2nd half of the fiscal year and is optimistic about the outlook for the year ahead where it will continue to lead in AI, invest in innovation, and seize on the unprecedented opportunities presented by hybrid AI as it accelerates growth and sustainable profitability increases across its entire business.

Lenovo’s Board of Directors declared a final dividend of 3.8 US cents or 30.0 HK cents per share for the fiscal year ended March 31, 2024.

Yuanqing Yang, Chairman and CEO, said, “Lenovo’s fourth quarter results clearly demonstrate that we have not only resumed growth across all our businesses but that our business momentum is accelerating, driven by the unprecedented opportunities brought by Hybrid AI. Fueled by our intelligent transformation strategy and years of investment in innovation, we’ve built a full stack of AI capabilities and are at the forefront of pioneering the revolutionary AI PC market. Our vision in the AI era is Smarter AI for All. Supported by our strong execution, persistent innovation, operational excellence, and ecosystem partnerships, we are confident we can deliver sustainable growth and profitability improvement in the coming year.”

Financial Highlights:


Q4 23/24

US$ millions

Q4 22/23

US$ millions

Change FY 23/24

US$ millions

FY 22/23

US$ millions



Group Revenue 13,833 12,635 9% 56,864 61,947 (8%)
Pre-tax income 309 130 137% 1,365 2,136 (36%)
Net Income

(profit attributable to equity holders)

248 114 118% 1,011 1,608 (37%)
Net Income

(profit attributable to equity holders – non-HKFRS) [1]

218 284 (23%) 1,038 1,878 (45%)
Basic earnings per share (US cents) 2.02 0.95 1.07 8.41 13.50 (5.09)

Solutions and Services Group (SSG): Strong growth and profitability, driving AI solutions



For the quarter and year ended March 31, 2024

(in US$ millions, except per share data)


Q4 FY23/24 Q4












13,833 12,635 9% 56,864 61,947 (8)%
Gross profit


2,428 2,143 13% 9,803 10,501 (7)%
Gross profit margin


17.6% 17.0% 0.6 pts 17.2% 17.0% 0.2 pts
Operating expenses


(1,939) (1,852) 5% (7,797) (7,832) (0)%
R&D expenses
(included in operating expenses)
(532) (550) (3)% (2,028) (2,195) (8)%
Expenses-to-revenue ratio


14.0% 14.7% (0.7) pts 13.7% 12.6% 1.1 pts
Operating profit


489 291 68% 2,006 2,669 (25)%
Other non-operating income/(expenses) – net


(180) (161) 12% (641) (533) 20%
Pre-tax income


309 130 137% 1,365 2,136 (36)%


(56) (24) 124% (263) (455) (42)%
Profit for the period/year


253 106 140% 1,102 1,681 (34)%
Non-controlling interests


(5) 8 N/A (91) (73) 26%
Profit attributable to equity holders


248 114 118% 1,011 1,608 (37)%
Profit attributable to equity holders – non-HKFRS[1]


218 284 (23)% 1,038 1,878 (45)%
Earnings per share (US cents)