Overview
- Revenue rose 18% to $22.2 billion in the December quarter, but reported net profit fell 21% to $546 million after a $285 million restructuring charge, with adjusted net profit up 36% to $589 million.
- CEO Yang Yuanqing said PC unit sales will face pressure from a worsening memory-chip crunch and confirmed Lenovo has increased prices to offset cost spikes while aiming to grow revenue and maintain profitability.
- The restructuring targets a sharper focus on AI inference and seeks up to $200 million in cost savings over three years.
- Lenovo’s digital infrastructure group grew 31% yet posted an $11 million operating loss as it invested to scale AI capabilities, with AI server revenue seeing high‑double‑digit growth driven by rack‑scale deployments based on Nvidia’s GB200 NVL72 design.
- Yang warned of a prolonged impact from soaring memory prices, noting DRAM costs doubled this quarter after a 40%–50% jump last quarter, while AI-related businesses grew 72% to nearly one‑third of quarterly revenue and Lenovo added new AMD-based inference servers in January.