Dell, HP stocks rises on Lenovo’s strong quarterly results
On Thursday, Dell Technologies (DELL) shares surged 4% in pre-market trading, while HP Inc. (HPQ) climbed 6.5% and Hewlett Packard Enterprise (HPE) increased 3.5%, driven by strong quarterly results from Lenovo. The tech giant's first-quarter performance, reported at $26.94 billion, exceeded market expectations by a significant margin, growing at a 43% year-over-year rate.
Lenovo's infrastructure solutions revenue expanded 98% YoY to $8.51 billion, surpassing expectations by a wide margin of $6.13 billion. The company's intelligent devices revenue reached $17.11 billion, marking a 27% YoY increase. Solutions and services revenue grew 28% YoY to $2.88 billion, also beating the consensus estimate of $2.71 billion.
Lenovo's AI-related revenues increased by a substantial 60% YoY, accounting for 35% of the company's total revenue. The gross margin improved to 16.5% from 14.7% in the previous year, slightly above the estimated 16%. Furthermore, Lenovo revealed ambitions to achieve $100 billion in revenue by the end of its current fiscal year.
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