Chinese company "Lenovo", the largest manufacturer of personal computers in the world, announced a sharp decline in its profits during the fourth quarter of its fiscal year ending March 31, 2025, by 64%. Despite this decline, the company's revenues exceeded market expectations, while "Lenovo" is strongly looking towards a future powered by artificial intelligence.
The company revealed today, Thursday, May 22, that its profits for the three-month period ending in March amounted to $90 million, which was much lower than analysts' expectations of $225.8 million.
In contrast to profits, "Lenovo's" revenues exceeded market expectations according to the London Stock Exchange, reaching $16.98 billion, compared to analysts' expectations of $15.6 billion.
As part of its digital transformation strategy, "Lenovo" launched its first AI-powered computers in China in May 2024, expanding globally in September of the same year.
The CEO, Yang Yuanqing, expects these devices to account for 25% of the company's shipments by 2025, potentially reaching 80% by 2027, highlighting the future focus on artificial intelligence as a growth driver.
Lenovo has integrated artificial intelligence technologies from the Chinese startup "Deep Seek" into its devices, including computers and tablets.
On the business front, Lenovo's Infrastructure Solutions Group, which includes servers, recorded strong revenue growth of 64% year-on-year during the last quarter. Additionally, the Solutions and Services group, which provides cloud software to corporate clients, saw revenues rise by 22% to reach $2.2 billion.
Following the announcement of the results, shares of "Lenovo" listed on the Hong Kong Stock Exchange fell by 2.08%, bringing their losses since the beginning of the year to 1.69%. The company clarified that this decline is primarily due to a non-cash decrease in the value of guarantees, indicating that the market may have focused on the decline in net profits despite strong revenues and future plans in the field of artificial intelligence.
