Lenovo Group Limited, the global technology powerhouse, has reported its Q3 results for the fiscal year 2023/24, revealing a 3% year-on-year increase in Group revenue to US$15.7 billion.

The company's profitability improved for the second consecutive quarter, with net income reaching US$357 million on a non-Hong Kong Financial Reporting Standards (non-HKFRS) basis.

The company's net income margin also saw a quarter-to-quarter increase of 0.4%, reaching 2.3%. Non-PC businesses accounted for 42% of the Group's revenue, marking a year-on-year increase of 1.3 points.

Lenovo's Solutions and Services Group (SSG) business passed the US$2 billion revenue threshold, achieving a record operating profit with an operating margin of over 20%. The business also saw year-on-year revenue growth from managed services and project and solution services for 11 straight quarters.

The Infrastructure Solutions Group (ISG) business delivered quarter-to-quarter revenue growth and reached a record high of US$1 billion in revenue for its storage, software, and services businesses.

The Intelligent Devices Group (IDG) business resumed revenue growth, outperformed the market, and achieved year-on-year shipment growth for PCs, maintaining its industry-leading profitability.

Lenovo, ranked #217 in the Fortune Global 500, is capitalising on the significant growth opportunities offered by the AI-era, particularly the emerging trend of hybrid AI. The company continues its investment commitments in innovation, with R&D headcount up year-to-year at more than 25% of Group headcount, and R&D expenses-to-revenue ratio for the full fiscal year on track to hit an all-time high.

Yuanqing Yang, Chairman and CEO of Lenovo Group, commented on the results: "Last quarter, we delivered on our promise and resumed year-on-year revenue growth, driven by both the resilience of our core businesses and the effectiveness of the service-led transformation. Looking ahead, our commitment to AI innovation, our pocket-to-cloud computing capabilities, full stack portfolio of smart devices, smart infrastructure, smart solutions and services, combined with our partnerships with other key leaders in AI, will ensure that we are well-positioned to capture the tremendous opportunities in AI."

With revenues of US$62 billion, Lenovo employs 77,000 people globally and serves millions of customers every day in 180 markets. The company's Q3 results highlight its resilience and growth potential in the face of global market challenges and underline its commitment to capitalising on the opportunities presented by the AI era.