Revenues for the year to the end of March rose to $46.3bn, with the firm's mobile phone business contributing some $9.14bn of the total.
Its revenues have been helped by the purchase of Motorola in 2014, which has made it the world's third-largest smartphone maker.
However, net profits grew by just 1% to $829m, missing expectations.
Lenovo bought Motorola and IBM's low-end server unit last year in an attempt to diversify beyond the PC business.
The firm said it had been "another record year for Lenovo with a more diversified business", but put its poor net profit result down to increased operating expenses.
Lenovo said its mobile business, including Motorola, had "delivered record shipments and built a more globally balanced business".
The Beijing-based giant also said its market share in the global personal computer sector had grown to a record high of 20.9%.

The 25-year-old victim had to have blood transfusions after being struck on the head at a pub in Stirchley, Birmingham.
Luke Pinder, 21, of Millfield Close, Hawkinge, Folkestone, Kent, has been jailed for eight years.
He admitted wounding with intent to do grievous bodily harm.
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Pinder, who was sentenced at Birmingham Crown Court, was in the Horseshoe Arms last September when security staff asked everyone to leave at closing time.
He threw a bottle at full force, hitting the other man as he stood up to leave, causing a deep gash on the back of his head, police said.
He was celebrating with his girlfriend after just being told he was in remission from acute myeloid leukaemia.
Pinder's image was circulated and he was identified.
China's Lenovo, the world's biggest personal computer maker, has reported a 20% rise in full-year revenues.
[NEXT_CONCEPT]
A man who threw a bottle that struck a man celebrating being told he was in remission from leukaemia has been jailed.