LG CNS said its first-quarter results improved across all business segments as it expanded AI and cloud-focused operations, citing stronger external demand and growing interest in AI transformation, or AX.
The company said Thursday it posted 2026 first-quarter revenue of 1.315 trillion won and operating profit of 94.2 billion won. Revenue rose 8.6% from a year earlier and operating profit increased 19.4%.
Revenue from its AI and cloud business, a key growth driver, rose 6.7% to 765.4 billion won, accounting for about 58% of total sales. LG CNS said it expanded its AX portfolio across industries including public and defense, finance, manufacturing, pharmaceuticals and biotech, shipbuilding and defense manufacturing. It said it has broadened external business by providing agentic AI-based multi-agent services and secured what it described as one of the largest sets of AX implementation cases in South Korea.
LG CNS said it is also strengthening global partnerships, expanding cooperation beyond the three major global cloud providers to include OpenAI and Palantir as it targets the enterprise AX market. It began supplying ChatGPT Enterprise in February and has secured about 10 corporate customers, it said. With Palantir, it said dedicated teams are working together to identify high value-added AX projects.
In cloud infrastructure, LG CNS said it is boosting competitiveness through its data center DBO business, covering design, build and operations. It said it won orders worth about 1 trillion won for the Samsong data center, reaffirming its position as a domestic DBO provider. The company also introduced a modular AI data center that it said can be built within six months as it expands its infrastructure business.
Revenue from the smart engineering segment rose 10.4% to 227.8 billion won. The company said its smart logistics business grew on projects to build automated centers for beauty, food, fashion and defense-related clients, and that it secured global references through its AI-based logistics optimization solution, “Mobile Shuttle.”
LG CNS said its smart factory business also maintained growth as projects won in defense, shipbuilding, semiconductors and pharmaceuticals translated into revenue. It said its lightweight smart factory solution is spreading to new industries including food, medical, electronics and consumer goods, and that its agentic AI-based battery testing equipment has received positive market feedback.
Revenue from digital business services increased 11.9% to 321.9 billion won, driven by next-generation system projects for major financial firms including NH NongHyup Bank, Mirae Asset Life Insurance and Shinhan Investment Corp., the company said.
Looking ahead, LG CNS said it plans to expand into physical AI, promoting robot commercialization through a “full-stack RX (Robot Transformation)” service that combines an industry-specific robot foundation model, hardware and a platform. It said it has also secured a broader robot lineup, including humanoids, through steps such as investing in U.S. robotics company Dexmate.
The company said it is expanding overseas business as well. It said an AI data center project in Indonesia is scheduled for completion within the year, and that it is stepping up efforts in Japan and the United States centered on enterprise solutions such as “PerfecTwin.” It added that its financial digital transformation business is also expanding across the Asia-Pacific, or APJ, region.
* This article has been translated by AI.
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