- Lenovo‘s first-quarter revenue exceeded expectations, reaching $18.83 billion compared to the estimated $17.56 billion.
- The company’s net income also beat predictions, totaling $505.3 million against an estimate of $352.8 million.
- Research and development expenses were lower than expected, amounting to $524.2 million, while the estimate was $566.3 million.
- Lenovo‘s gross margin was slightly below the forecast, standing at 14.7% instead of the anticipated 16.3%.
- The company achieved an operating profit of $784.8 million.
- Analyst ratings display strong confidence in Lenovo, with 31 buy recommendations, 4 holds, and no sells.
Lenovo on Smartkarma
Analyst coverage of Lenovo on Smartkarma showcases varied perspectives on the tech giant. Nicolas Baratte‘s bullish outlook in the article “PC 2Q25: 6-7% Unit Growth YoY Is Pretty Good. 2025 Looks like a 5-6% Growth Year” highlights strong enterprise demand for PCs, particularly benefiting players like Lenovo with a 16% YoY growth. Meanwhile, Trung Nguyen‘s bullish sentiment in the report “Lenovo – ESG Report – Lucror Analytics” emphasizes Lenovo‘s global dominance as the largest PC manufacturer and key player in the mobile-phone and server markets.
Despite positive views, analyst Nicolas Baratte‘s bearish lean in “PC 1Q25: 5% YoY Growth but Shipments Inflated Ahead of US Tariffs. Dream of a Refresh Cycle Continue” raises concerns about potential over-building in the PC market, particularly related to the Windows 10 upgrade cycle and AI PC trends. This contrasts with Trung Nguyen‘s upbeat assessment in the piece “Lenovo – Earnings Flash – FY 2024-25 Results – Lucror Analytics,” acknowledging Lenovo‘s solid revenue growth and profitability, despite a weaker Q4 performance.
A look at Lenovo Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Lenovo Group Limited, a company known for selling personal computers and handheld devices, is positioned with a moderate to positive long-term outlook according to Smartkarma Smart Scores. With balanced scores across key factors including Value, Dividend, Growth, Resilience, and Momentum, Lenovo is seen on a steady path with room for potential growth. The company’s focus on innovation and adaptability in the tech sector contributes to its resilience and growth prospects.
Analysts foresee Lenovo maintaining a steady course in the market, backed by decent scores in various aspects. While not leading in any particular category, Lenovo‘s overall outlook appears favorable. The company’s diversification into internet services and IT services, alongside its core PC and device manufacturing business, provides a multifaceted approach to the market. Investors may find Lenovo an intriguing prospect for potential long-term growth and stability.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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