Lenovo Reports Record Annual Financial Results Driven by Artificial Intelligence Infrastructure Growth and Strong Performance Across All Business Divisions
Lenovo reported record breaking quarterly and annual financial results and unparalleled growth across its main operational divisions. Consolidated revenue increased to a record $21,600,000,000 for the last quarter. That is a 27 percent gain over the comparable fiscal year period and the highest annual percentage growth rate the firm has reported in 5 years. Quarter adjusted non recurring income grew to $559,000,000, double over the previous quarter, boosted by enterprise interest in machine learning infrastructure and services.
The demand for in house machine learning and data processing became the main reason for the strong financial performance. Artificial intelligence linked revenues grew by 84 percent year on year during the three month period and accounted for 38 percent of total corporate revenue. Over the full fiscal year, consolidated revenue hit a record high of $83,100,000,000 and total adjusted non recurring income grew by 42 percent, reaching $2,000,000,000. A final dividend of 33.70 HK cents was proposed by the board for shareholders.
Lenovo has completed its best ever year with an outstanding fourth quarter, we delivered on our promise and have achieved hyper growth by taking advantage of the exploding AI infrastructure market. By implementing our Hybrid AI strategy, we have put ourselves in the leading position to be the leader in the next wave of AI inference and democratization. Our momentum across all businesses reinforces our ambition to become a $100,000,000,000 company within two years, while maintaining strong returns for shareholders.
The Intelligent Devices Group, which is responsible for personal computers, tablets, and smart devices, achieved a 24% revenue growth that reached $14,600,000,000. The revenue for personal computer and connected devices grew by 26% year on year with an operating profit margin of 6.9%. The global market share of the business grew to 24.4%, representing the largest difference in market share between the first and second place players in 15 years. Half of the total shipment of personal computers and connected devices for the quarter came from premium products, and this shift to higher margin commercial goods has proven successful. In addition, sales of the Motorola brand smartphones achieved record volume in the quarter, with growth of double digits.
The Infrastructure Solutions Group completed a major operational turn around and generated record quarterly revenues of $5,600,000,000. This is a 37% gain year on year and a $202,000,000 in operating profit fueled by a $21,000,000,000 AI server pipeline and over 5,800 active customer deployments within enterprises. To keep up with demand, the company also shipped out the first GB300 NVL72 server rack and the Rubin processor platform are on track to release later in the year. The company's annual server rack manufacturing capacity exceeds 70,000 servers with 11,000 specially designed direct liquid cooling units that can support high end processing needs. These capabilities are further augmented by the recently concluded acquisition of Infinidat, a premium storage company for enterprises.
The Solutions and Services Group continued its trajectory of long term growth, growing revenues by 19% to $2,600,000,000. This is the fifth consecutive year of double digit growth within this consulting and support division that is maintaining a healthy profit margin above 20%. This revenue includes a 62% component of Recurring Managed Services and custom project agreements, which signifies a strategic move toward a more asset light operating model. Its proprietary Hybrid AI Advantage platform has now expanded to cover all of the manufacturing, retail and sports industry clients, and has an array of over 60 pre packaged use cases designed to reduce initial data token time.
To support the accelerated advancement in technology, investments in core science and product engineering were increased. R&D spend was up by 16% during the quarter and now makes up 3.5% of revenue, ending the fiscal year at 3% of total revenue. These investments have enabled the increased implementation of TruScale, a consumption based computing resource that allows cloud providers and enterprises to scale their machine learning operations with predicted operational cost and guaranteed component availability.
