AI and Cloud Lift Samsung SDS and LG CNS; Robotics Emerges as a New Growth Driver

Both Post Strong Third-Quarter Results on AI and Cloud Growth
Expanding AI Infrastructure Investment... Physical AI Platforms Move into Full Swing

Samsung SDS and LG CNS, having confirmed strong demand for artificial intelligence (AI) and cloud services in the third quarter of this year, are stepping up investment and commercialization efforts in AI Transformation (AX) and Robotics Transformation (RX).

LG CNS disclosed on October 30 that its consolidated operating profit for the third quarter of this year was tentatively estimated at KRW 138.2 billion, up 15% from the same period last year. Revenue for the same period rose 9.3% to KRW 1.6643 trillion. Revenue in its core AI and cloud businesses increased 9.3% to KRW 961.5 billion in the third quarter.

Results continued to improve in its AI infrastructure business, including increased revenue from AIDC colocation services at data centers LG CNS operates under contract, such as the Samsong AI Data Center (AIDC). Revenue in the digital business services sector rose 21.3% to KRW 408.2 billion, as revenue recognition began for next-generation system development projects previously secured in the financial sector.

Samsung SDS, which earlier reported third-quarter revenue of KRW 3.7725 trillion and operating profit of KRW 241 billion, also saw strong performance in its cloud and logistics businesses. They grew 11.2% and 3.7%, respectively, compared with the same period last year. Revenue in the IT services division increased 5.3% to KRW 1.681 trillion, with cloud revenue rising 18% to KRW 796.1 billion on the back of expanded AX business.

Both companies said they would accelerate investment and commercialization in AX and RX. Samsung SDS was selected as the preferred bidder for a large-scale design, build and operate (DBO) project of more than 200 megawatts (MW) being pursued by Pacific Asset Management. In August 2026, it also began construction of the National AI Computing Center.

Lee Ho-jun, head of the Cloud Business Division, said on a conference call that the company would be able to meet its cumulative target of 500 MW for data center DBO projects by 2031, adding that the projects would generate more than KRW 1 trillion in annual revenue starting in 2031. In robotics, the company is developing its physical AI business with global physical AI companies, including Rainbow Robotics and Walden Robotics. CEO Lee Jun-hee said, "We plan to launch a 'robot orchestration platform' in 2027 that covers everything from robot training to operations."

LG CNS also acquired tangible assets worth approximately KRW 380 billion to secure graphics processing units (GPUs) for building AI factories. It will also jointly invest in enterprise software (SW) and AI businesses with global investment firm General Atlantic. The company plans to strengthen partnerships with global tech giants such as NVIDIA, physical AI companies and robot manufacturers.

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