Lenovo reported revenue of $17.869 billion (+23 percent) and net income of $512 million (+65 percent) during the second quarter of fiscal 2021-22.
Lenovo has generated revenue of $1.36 billion (+30 percent) from Solutions and Services Group. Solutions and Services Group is delivering 7.3 percent of group revenue and with an operating margin of almost 21 percent.
Support services penetration rates for PC customers and infrastructure customers both improved. Managed Services saw revenue up almost 90 percent year-on-year, and the Group saw repeatable solutions based on Lenovo’s own IP gaining traction, resulting in Project Services and Solutions achieving almost 22 percent year-on-year revenue growth.
Lenovo generated nearly $2 billion (+34 percent) revenue from Infrastructure Solutions Group (ISG) SG delivered record performance. Profitability continued to improve by US$24 million year-on-year, nearing break even.
The ISG business outgrew the market in nearly every segment. Cloud Service Provider reached historic high revenue with over 50 percent growth year-on-year; Enterprise/SMB revenue had strong growth of 20 percent year-on-year.
In the higher margin segments, storage revenue grew over 50 percent year-on-year to a new record, and in High Performance Computing the Group delivered the fastest university high performance computer in China, powered by Lenovo Neptune water-cooling technology.
Lenovo generated revenue of $15.3 billion (+21 percent) from Intelligent Devices Group (IDG), with stronger profitability growth.
Premium PC segments delivered high growth with premium Yoga and workstation revenue each more than doubling year-on-year. Commercial PC revenue grew 29 percent year-on-year and SMB PC grew 48 percent year-on-year.
Lenovo said smartphones had its best quarter ever, with profit reaching a new historic high of US$89 million, while revenue grew 27 percent to the highest in 15 quarters. All geographies delivered high profitable growth. Lenovo’s tablet revenue grew 20 percent year-on-year and accessories business grew 31 percent year-on-year.