Lenovo posted its second-quarter financial results, and they are looking quite good. There is more demand for personal computers as more people work from home. The Hong Kong-based company reported a $14.5 billion profit, which is 7% higher than last year.
The company has a pretax income of $470 million, which is up by 52% from last year. The net income rose by 53% to hit $310 million. Analysts had projected that Lenovo would report a net income of a conservative $224 million.
Lenovo’s CEO, Yuanqing Yang, noted that the results reflect the company’s mission to meet the needs of the growing work, learn and play-from home market that emerged as a direct result of the pandemic.
All departments have grown
The best evidence of this growth comes from its Intelligent Devices Group, which has its two primary business groups; the Mobile Business Group and the prominent PC and Smart Devices Group.
The PCSD had revenue of $11.5 billion, with 8% growth year over year, enough to make Lenovo claim the title of the leading global PC company with a market share of 23.6% of global revenue.
The Mobile Business Group (MBG) saw about 18% revenue growth compared to their numbers from a year ago. Lenovo has a Data Center Group (DCG) that also did well. Their revenue rose 11% from a year ago to hit $1.48 billion on growth.
Lenovo will continue to perform well
Lenovo’s cloud service provider on the DCG also has a 34% growth compared to the same time a year ago. Lenovo has an Intelligent Transformation group covering the ‘internet of things’ devices, services, software, and infrastructure.
The company has said that the business outlook for the rest of 2020 seems to be positive. Executives have said that they expect the strong demand for PCs to continue as the pandemic rages on.