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|
|Gross profit margin||16.7%||16.2%||0.5 pts|
|R&D expenses (included in operating expenses)||(549)||(398)||38%|
|Expenses-to-revenue ratio||12.0%||12.1%||(0.1) pts|
|Other non-operating income/(expenses) - net||(77)||(110)||(30)%|
|Profit for the period||682||431||58%|
|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.