Lenovo[1] has recorded strong Q2 2020 financial results, bolstered by strong PC demand prompted by the work from home movement due to COVID-19.
On Tuesday, the Hong Kong-based PC maker published its second-quarter[2] earnings, including revenue of $14.5 billion -- up 7% year-on-year -- and basic earnings per share (EPS) of $2.59 (20.08 HK cents).
Lenovo's board of directors declared an interim dividend of 6.6 HK cents.
Pre-tax income of $470 million was reported, up 52% in comparison to Q2 2019, which Lenovo says is a "record" result. Net income in Q2 2020 was reported as $310 million, an increase of 53% year-on-year.
Analysts estimated[3] net income of $224 million during the quarter.
See also: Lenovo launches flagship Yoga 9i line, Legion Slim 7i, and slew of other devices[4]
Lenovo's Intelligent Devices Group (IDG), including PCs and smart devices, reported strong revenue over the quarter. The PC and Smart Devices Group (PCSD) reported revenues of $11.5 billion, up 8% year-on-year, a payment-to-income (PTI) ratio of $723 million, and overall growth of 18%.
Lenovo says that the company now claims the lion's share of the global PC market with an overall share of 23.6%.
IDG's second business unit, the Mobile Business Group (MBG), has returned to year-on-year growth with a 39% boost in comparison to a sluggish first quarter.
Lenovo's Data Center Group (DCG) recorded revenue growth of 11% year-on-year, reaching $1.48 billion. The cloud service provider unit also saw a revenue increase of 34% in comparison to Q2 2019. Enterprise and SMB revenue was recorded as close to flat, however, growth was recorded across Software Defined Infrastructure (22%), Storage (15%), Software (47%) and Services (11%).
The Intelligent Transformation group, including Internet of