LG CNS Achieves Record-High Q1 Operating Profit of 78.9 Billion Won Driven by AI Transformation

Q1 2025 Earnings Announcement: Sales Reach 1.2114 Trillion Won
Cloud and AI Businesses Grow 30.1% Year-on-Year

LG CNS announced on April 28 that it achieved record-breaking results for the first quarter of this year. On a consolidated basis, the company posted sales of 1.2114 trillion won and operating profit of 78.9 billion won. Compared to the same period last year, sales increased by 13.2%, while operating profit surged by 144.3%.

LG CNS accelerated its AI transformation business in line with the growing trends of enterprise cloud migration and artificial intelligence (AI) adoption, resulting in its highest-ever quarterly sales and operating profit. Sales from cloud and AI businesses grew by 30.1% year-on-year, reaching 717.4 billion won. The cloud and AI segment accounted for approximately 59% of total sales, solidifying its position as LG CNS's core growth engine.

In the AI sector, growth was particularly notable in the finance and manufacturing industries. LG CNS has been leading AI transformation projects for financial companies such as NH NongHyup Bank, Mirae Asset Life Insurance, Mirae Asset Securities, Shinhan Bank, Shinhan Card, and KB Financial Group. As the adoption of generative AI in next-generation financial systems expands, related business performance is expected to continue to grow. LG CNS is also actively carrying out projects to upgrade factories of various manufacturing companies, including S-OIL, into AI-based intelligent factories.

In the cloud sector, increasing demand for cloud migration from companies in industries such as gaming, logistics, and finance led to continued sales growth. LG CNS has also strengthened its market dominance as a data center construction and operation provider, with domestic and international data center business sales entering a phase of rapid growth. In the AI data center domain, the company is accelerating the establishment of AI data centers in Southeast Asia, leveraging immersion cooling technology that uses special liquids to cool servers, as well as digital twin technology. The enterprise data platform business is also growing, further contributing to overall performance.

Meanwhile, sales from smart engineering businesses?including smart logistics, smart factories, and smart cities?totaled 206.3 billion won. LG CNS is expanding its industrial reach by acquiring new smart factory clients and broadening the application of robots in smart logistics sites. In the smart city sector, the company secured stable sales from domestic and overseas transportation systems. Sales from digital business services, including system integration (SI), amounted to 287.7 billion won, with new large-scale projects secured in the finance and public sectors.

The company is also actively investing for future growth. To secure a leading position in the emerging 'Agentic AI' market, considered a key area for future AI, LG CNS is proactively collaborating with global advanced AI companies such as Cohere and W&B to develop new services. The company plans to expand its global market presence?including in the United States and Asia-Pacific regions?by strengthening AX partnerships with major global tech companies such as AWS, Microsoft, and Google Cloud, going beyond the cloud sector.