Lenovo Thinkpad X1 Nano HeroSource: Daniel Rubino / Windows Central

What you need to know

  • Lenovo hit records for profit and revenue in the third quarter of its 2021-22 fiscal year.
  • It was the company's first $20 billion quarter in terms of revenue.
  • Lenovo's net income grew at a rate of over 50% for the sixth quarter in a row.

Lenovo earned record profit and revenue in the Q3 of its 2021-22 fiscal year. The company saw a net income growth rate of over 50% for the sixth straight quarter. Lenovo made a net income of $640,000 in the quarter, which represents 62% growth year-over-year. It was also the first $20 billion quarter for the company for revenue.

"With another record quarter, we delivered the 6th quarter of more than 50% net income year-on-year growth, and the first US$20 billion revenue quarter in our history," said Lenovo Chairman and CEO Yuanqing Yang. "We remain on track to double both our net margin and R&D investment in three years from FY20/21 levels."

The following chart from Lenovo is measured in millions of U.S. dollars except when reporting per share data.

Category Q3 21/22 Q3 20/21 Y/Y Change
Revenue 20,127 17,245 17%
Gross profit 3,355 2,786 20%
Gross profit margin 16.7% 16.2% 0.5 pts
Operating expenses (2,423) (2,085) 16%
R&D expenses (included in operating expenses) (549) (398) 38%
Expenses-to-revenue ratio 12.0% 12.1% (0.1) pts
Operating profit 932 701 33%
Other non-operating income/(expenses) - net (77) (110) (30)%
Pre-tax income 855 591 45%
Taxation (173) (160) 8%
Profit for the period 682 431 58%
Non-controlling interests (42) (36) 16%
Profit attributable to equity holders 640 395 62%
EPS (US cents) basic 5.50 3.31 2.19
EPS (US centrs) diluted 4.92 3.08 1.84

Lenovo's Solutions and Services Group saw revenue growth of 25% year-over-year. Its Infrastructure Solutions Grow recorded its first profitable quarter since 2014 in Q3 21/22. The company's Intelligent Devices Group, which makes some of the best Windows laptops, had revenue growth of 16% year-over-year in the quarter.