China’s Lenovo Q3 Profit Falls 21%

China’s Lenovo Group has reported a 21% drop in third-quarter profit but beat analyst expectations as strong revenue growth helped offset margin pressures, Cher Pan and Brenda Goh reported for Reuters.

The world’s largest PC maker has benefited from artificial intelligence-driven demand. (Photo: Lenovo Facebook)

Net profit attributable to shareholders fell to $546 million for the three months ended Dec. 31, above the average analyst estimate of $451.29 million, according to LSEG data.

Revenue rose 18% year on year to $22.2 billion, beating expectations of $20.6 billion, as the world’s largest PC maker benefited from artificial intelligence-driven demand.

Adjusted net profit, which excludes one-off items and non-cash charges, climbed 36% to $589 million.