LG CNS Q3 revenue rises 9% to 1.7 trillion won; AI, cloud and finance drive growth

[Financial News] LG CNS drove earnings growth in the third quarter of this year, supported by solid growth in AI and cloud and higher revenue from next-generation financial services businesses.
LG CNS said on the 30th that it posted third-quarter revenue of 1.6643 trillion won and operating profit of 138.2 billion won. Revenue rose 9.3% and operating profit 15.0% year over year.
Third-quarter revenue in the AI and cloud segment reached 961.5 billion won, up 9.3% year over year.
Growth continued, particularly in AI infrastructure. Revenue from colocation at AI data centers operated by LG CNS under contract increased, alongside work to build and operate the Samsong AI Data Center. At a global data center event recently held in Singapore, LG CNS showcased its prefabricated modular data center, “AI HAUS,” and GPU as a Service (GPUaaS) based on NVIDIA’s “Vera Rubin,” highlighting its full-stack AI factory service capabilities and strengthening its business foundation spanning infrastructure, cloud and data.
LG CNS carried out a range of AX projects for external clients, including developing an AI transformation master plan for an airport and building an AI drug discovery platform and an AI agent for health screenings. It also expanded its business with corporate clients using global generative AI tools such as ChatGPT Enterprise and Claude. Cloud revenue also increased as AI use spread across various sectors, including finance, gaming, aviation and manufacturing.
Third-quarter revenue in the digital business services segment reached 408.2 billion won, up 21.3% year over year, as revenue from next-generation financial services projects was recognized at a faster pace. Revenue growth was driven by next-generation system development projects for financial institutions, including NH NongHyup Bank, Mirae Asset Life Insurance and KB Kookmin Bank, which had previously been awarded and entered full-scale development. New contract wins continued, including a project to modernize the core banking system of Saemaul Geumgo. LG CNS is also steadily carrying out systems integration (SI) and systems management (SM) projects for public-sector clients such as KSD and the Ministry of Justice.
Revenue in the smart engineering segment came to 294.5 billion won, a slight year-over-year decline amid a slowdown in manufacturing. Even in this environment, LG CNS expanded its external business and broadened its customer base. Its smart factory business secured customer references across diverse industries, including defense, pharmaceuticals, electronics and batteries, while its smart logistics business expanded logistics automation projects for Korean companies operating overseas.
To keep pace with surging AI demand, LG CNS is strengthening its AI business competitiveness around two pillars: agentic AI services that autonomously handle work across business operations, and AI infrastructure that reliably supports them. It is also increasing investment in AI to drive future growth. LG CNS acquired about 380 billion won worth of tangible assets to secure the GPUs needed to build and operate AI factories. It then moved ahead in earnest with joint investments in enterprise software and AI businesses with leading global investment firm General Atlantic. The company plans to further diversify its AI business portfolio on this basis.
In its robotics transformation (RX) business, LG CNS is conducting proofs of concept (PoCs) based on PhysicalWorks, a robot learning and operations platform, primarily at logistics and manufacturing sites, and converting them into full-scale projects to expand contract wins. It also plans to continue strengthening partnerships with global tech giants such as NVIDIA, MS and AWS, as well as physical AI companies and robot manufacturers.
[email protected] Yeon Ji-an Reporter