LG CNS said Thursday it posted broad first-quarter growth across its businesses, helped by expanding AI and cloud operations. The company said rising demand for AI transformation, along with growth in external projects, lifted both profitability and sales.
LG CNS reported 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, climbed 6.7% to 765.4 billion won, accounting for about 58% of total sales. The company said it expanded its AI transformation portfolio across industries including the public and defense sectors, finance, manufacturing, pharmaceuticals and biotech, shipbuilding and defense manufacturing. It also said it is expanding external business by providing agentic AI-based multi-agent services and has secured what it described as the largest number of AI transformation 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 AI transformation market. It began supplying ChatGPT Enterprise in February and has secured about 10 corporate customers. With Palantir, it said dedicated teams are working together to identify high value-added AI transformation projects.
In cloud, the company said it is boosting competitiveness through its data center design, build and operate (DBO) business. It said it won orders worth about 1 trillion won for the Samsong data center, reaffirming its position as a domestic DBO provider. It also introduced a modular AI data center that can be built within six months as it expands its infrastructure business.
Revenue from its smart engineering business rose 10.4% to 227.8 billion won. The company said its smart logistics business grew on projects to build automated centers in beauty, food, fashion and defense manufacturing, and that it secured global references through its AI-based logistics optimization solution, “Mobile Shuttle.”
Its smart factory business also maintained growth as projects won in defense manufacturing, shipbuilding, semiconductors and pharmaceuticals translated into revenue, the company said. It said its lightweight smart factory solution is spreading into new industries including food, medical, electronics and consumer goods, and that its agentic AI-based battery testing facility has received a positive market response.
Revenue from digital business services increased 11.9% to 321.9 billion won. The company said performance was driven by next-generation system projects for major financial firms including NH NongHyup Bank, Mirae Asset Life Insurance and Shinhan Investment Corp.
Looking ahead, LG CNS said it plans to expand into physical AI. It said it will pursue robot commercialization through a “full-stack RX (Robot Transformation)” service combining an industry-specific robot foundation model, hardware and a platform. It also said it has secured a broader robot lineup, including humanoids, through steps such as investing in U.S. robotics company Dexmate.
The company is also expanding overseas business. It said it won an order in August last year for a hyperscale AI data center project in Jakarta worth about 100 billion won and is pushing to complete it by the end of 2026. The project is being carried out through “LG Sinar Mas,” a joint venture established with Indonesia’s Sinar Mas Group.
LG CNS said it is stepping up efforts in Japan and the United States centered on enterprise solutions such as “PerfecTwin,” and is expanding its financial digital transformation business mainly across the Asia-Pacific region.
* This article has been translated by AI.
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