Lenovo posts 20% revenue growth as PC market recovers
Lenovo beats expectations with $18.8 billion revenue in Q3
Lenovo reported a 20% year-on-year increase in revenue for the third quarter, signaling a potential rebound in the global personal computer (PC) market.
The Chinese technology giant, best known for its PC business, posted revenue of $18.8 billion for the quarter ending December 31, surpassing analysts’ expectations of $17.82 billion, according to LSEG data, reports Reuters.
The company’s net profit also exceeded forecasts, reaching $693 million—almost double the estimated $367.7 million. This strong performance comes amid lingering uncertainty in the PC industry, which faced a significant downturn following the pandemic-driven surge in demand.
Signs of Recovery in the PC Market
Despite ongoing challenges, the global PC market showed early signs of stabilization, with shipments growing by 1.8% in the fourth quarter of 2024, according to research firm IDC. Lenovo retained its position as the world’s leading PC vendor, capturing a 24.5% market share. The company’s shipments rose by 4.8%, outpacing overall market growth.
Industry experts have suggested that the recent increase in PC demand could be attributed to businesses upgrading their devices, as well as growing interest in AI-powered computers. However, uncertainty remains regarding whether this growth will be sustained in the long term.
Lenovo’s AI and Software Expansion
In response to changing market dynamics, Lenovo has been expanding beyond its traditional hardware business. The company has invested heavily in software, services, and AI-driven technologies to diversify its revenue streams.
With artificial intelligence becoming a major focus for tech companies worldwide, Lenovo has positioned itself as a key player in AI-powered computing by ramping up its AI server and software businesses.
Looking ahead, Lenovo aims to further capitalize on the AI boom and strengthen its position in the enterprise market. Analysts suggest that the company’s strategy of expanding into high-growth sectors beyond PCs could help sustain its momentum despite market fluctuations.
Additionally, Trump Media & Technology Group Corp. (TMTG), the parent company of Truth Social, reported a $401 million loss in 2024, a more than six-fold increase compared to the previous year.
