Lenovo's Shares Hit Nine-Year High as Q4 Revenue Rises 9% to $13.8 Billion, Profit Exceeds Expectations

May 23, 2024, 05:32 AM

Lenovo's shares reached a nine-year high following an upgrade by Morgan Stanley. The company reported a 9% year-over-year increase in fourth-quarter revenue to $13.8 billion, surpassing the $13 billion estimate. This marks the second consecutive quarter of revenue growth. Lenovo's net profit rose by 118% year-over-year to $248 million, exceeding the $162 million estimate. The company has successfully leveraged artificial intelligence to drive increased PC sales, contributing to its better-than-expected performance. Additionally, Lenovo's non-PC revenue grew, with 42% of its annual revenue and 45% of its fourth-quarter revenue coming from non-PC areas. Both the Solutions and Services Group (SSG) and Infrastructure Solutions Group (ISG) saw double-digit revenue growth. Lenovo reported a third successive quarter of better-than-expected profit as the company exited a nadir for PC and server demand.