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Lenovo’s enterprise industry has posted 65 p.c 365 days on 365 days enhance but quiet posted a loss.
The Chinese language hardware enormous final Friday posted [PDF] its Q2 2025 results and revealed $17.85 billion revenue, $2.8 billion of corrupt profit and a $651 million working profit.
The firm’s Infrastructure Alternatives Community (ISG) – which makes enterprise hardware whereas also serving hyperscalers and supercomputing shops – was as soon as the well-known person of the present, posting $3.3 billion revenue to develop 65 p.c 365 days over 365 days. But the Community quiet made a loss of $35 million, because it has nearly constantly completed since Lenovo bought IBM’s x86 server industry a decade ago.
Professionals mentioned greater days lie forward thanks to an “enchancment understanding” that can simplify the Community’s portfolio, reinforce operations, and diversify cloud clients. But they had been also alive to to point out that Lenovo’s enterprise hardware biz is increasing faster than rivals – and that creating a unfold of hardware for AI workloads has considered R&D prices rise.
Speaking on Lenovo’s earnings name, ISG senior veep Vlad Rozanovich told merchants the firm has constructed the product portfolio that can let it trip the AI cycle – which begins with investment in training infrastructure after which sees merchants shift to inferencing equipment. Rozanovich suggested GPU-geared up edge servers, which Lenovo presents, are about to love their second.
The Clever Gadgets Community – which covers PCs, capsules, smartphones and utterly different deepest hardware – grew 17 p.c to $13.5 billion revenue. Lenovo claimed it gained 24 p.c of the PC market and observed AI PCs legend for over ten p.c of notebook sales. Community president Luca Rossi mentioned PC sales must reinforce as merchants like two factual causes to upgrade: cease of existence for devices offered to trek Home windows 10 that are now ripe for alternative, and a favor to adopt AI PCs and provide customers new experiences.
Those motives, professionals mentioned, can even again to reinforce Lenovo’s efficiency on legend of this quarter’s PC revenue was as soon as largely pushed by low-margin consumer devices.
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Smartphone revenue jumped 43 p.c sparked by what the firm described as “hyper enhance ranging from 20 p.c to triple digit in North The United States, EMEA and the Asia Pacific markets.” Lenovo’s smartphones principally promote below the Motorola attach.
Regardless of they’re called, the firm is chuffed that 46 p.c of its revenue now comes from sources utterly different than PCs – and that its smartphone biz has been profitable for four years.
The first question asked for the length of the earnings name’s interactive share got right here from Jun Wen of Maybank Asset Administration, who asked “What enact you attach a matter to the impact of most modern Trump administration to Lenovo? What are you able to enact to take care of this doable tariff concerns?”
CEO and chair Yuanqing Yang opened by announcing “it’s quiet too early to speculate or commentary on the brand new administration” and well-known that tariffs will impact Lenovo and its competitors.
He then declared “Lenovo has globalization advantages” its competitors enact now not.
“We like got a actually balanced revenue mix across geographies. We like got very diverse sourcing and manufacturing strategy. So we like very odd global resilient and flexible provide chain,” he mentioned. One example of that diversity is Lenovo’s “30-plus manufacturing facility … in nine utterly different markets – India, Japan, Hungary, Germany, Brazil, Argentina, Mexico, U.S.” The firm is building but every other in Saudi Arabia, where industry has snappy grown to $1.5 billion, to further enhance “resilience and flexibility”.
“This truly global and multinational situation will again us to navigate the scenario effectively, and we are in a position to again our aggressive advantage evidently,” the CEO concluded. ®
