BEIJING -China’s Lenovo, the world’s largest personal computer manufacturer, on Thursday reported a worse-than-expected 64% fall in fourth-quarter profit, which it said was mostly due to a non-cash decline in the value of warrants.
Lenovo reported revenue of $16.98 billion for the quarter ended March 31, which exceeded analysts’ expectations of $15.6 billion, LSEG data showed.
Net profit to the company’s owners came in at $90 million, well short of the average analyst estimate of $225.8 million, according to LSEG data.
Lenovo launched its first AI-powered PCs in China last May and followed that with a global rollout in September. CEO Yang Yuanqing has projected that AI PCs will account for a quarter of Lenovo’s shipments by 2025, potentially reaching 80% by 2027.
The company has integrated technology from Chinese startup DeepSeek – which has upended the AI sector with its low-cost model – into its devices, including PCs and tablets.
Lenovo’s infrastructure solutions group, which includes servers, posted a 64% revenue increase in the March quarter compared with the previous year.
The solutions and services group, which offers cloud-based software for enterprise clients, reported $2.2 billion in revenue, up 22% from a year earlier.
Lenovo’s Hong Kong-listed shares dropped 2.08% after the earnings release. They have dipped 1.69% for the year to date.
Please like, comment, and share this article if you found it helpful and
informative.
For more news check out Big Town Bulletin News
For more from Big Town Bulletin check out Big Town Bulletin
