Cloud, Logistics Drive Growth... Samsung SDS Posts Q3 Operating Profit of 241 Billion Won

Third-quarter revenue reaches 3.7725 trillion won, up 11.2% year over year
Cloud services rise 15% on AX demand and growth in GPUaaS
Quarterly logistics revenue tops 2 trillion won

Samsung SDS posted improved year-over-year results in the third quarter, driven by strong performance in its cloud and logistics businesses.

Samsung SDS (Samsung SDS Co., Ltd.) disclosed on Oct. 29 that its preliminary third-quarter revenue rose 11.2% from the same period last year to 3.7725 trillion won. Operating profit for the same period increased 3.7% to 241 billion won.

Samsung SDS logo. Samsung SDS

Growth in its external cloud business and air and ocean freight businesses drove overall revenue growth. Revenue from the IT services business rose 5.3% year over year to 1.681 trillion won. Cloud business revenue, in particular, increased 18% year over year to 796.1 billion won, supported by the expansion of its AI transformation (AX) business.

Within the cloud business, the cloud service provider (CSP) business grew 15% year over year, as demand for the Samsung Cloud Platform (SCP) increased and GPU-as-a-service (GPUaaS) offerings expanded in the public and software (SW) sectors. The cloud managed services (MSP) business rose 25% from the same period last year, driven by the expansion of financial-sector AX projects and enterprise resource planning (ERP) projects in the shipbuilding industry.

The logistics business generated revenue of 2.0915 trillion won, as cargo volumes and freight rates for air and ocean freight increased. This was up 16% from the same period last year.

Samsung SDS is making progress in its AX business based on its "multidimensional AI full-stack" strategy. In AI infrastructure, it was selected as the preferred bidder for a large-scale design, build and operation (DBO) project of more than 200 megawatts (MW) being pursued by Pacific Asset Management. The company plans to build a track record in DBO projects and expand its data center business through the project. In August, it began construction of the National AI Computing Center, which is targeted for completion in 2028.

In the AX and AI services area, the company expanded its AX business in the financial sector. After winning an "AI and data platform construction project" in the financial industry, it was also selected as the preferred bidder for AI platform construction projects at an insurance company and a financial holding company.

In the AI platform and solutions area, its AI collaboration solution, Brity Works, was adopted by major government ministries, bringing its cumulative number of users in the public sector to 330,000. The company also launched Brity Works Co-work, an AI agent that can analyze work materials and draft documents.

In security, Samsung SDS became the first South Korean company selected as a pilot partner for OpenAI's "Daybreak Partner Program." It also joined Google's "Fairwind" program and Anthropic's "Security Validation Program."

The company is also working to identify future growth businesses, including physical AI. It is developing its physical AI business through Team REX, a robotics partnership formed with global physical AI companies including Rainbow Robotics and Walden Robotics. In August, it worked with Walden Robotics, Roboforce and other global physical AI companies to validate use cases for robots in industrial settings that it had identified jointly with Samsung affiliates.

Meanwhile, Samsung SDS plans to hold a groundbreaking ceremony in early November for the Gumi AI Data Center, which will be built in Gumi, North Gyeongsang Province, with an initial power capacity of 60 MW.

This content was produced with the assistance of AI translation services.