Seoul:LG CNS Co., the information technology arm of LG Group, announced a 15 percent increase in its operating profit for the third quarter, primarily fueled by the robust expansion of its artificial intelligence (AI) and cloud services.

According to Yonhap News Agency, the company reported an operating profit of 138.2 billion won (approximately US$103.2 million) for the July-September period, as detailed in its regulatory filing.

The IT firm experienced a 9.3 percent rise in sales from the previous year, totaling 1.66 trillion won. However, the net profit decreased by 21.1 percent year-on-year, amounting to 83 billion won, largely attributed to unfavorable exchange rates. The growth in operating profits was significantly supported by a 9.3 percent increase in sales from its AI and cloud segments. LG CNS aims to bolster its competitive edge by focusing on agentic AI services and AI infrastructure as core business pillars.

In pursuit of these objectives, LG CNS acquired assets worth around 380 billion won to obtain graphic processing units essential for developing AI factories. Additionally, the company has partnered with New York-based venture fund General Atlantic to invest in ventures related to corporate software and AI.

In the physical AI sector, LG CNS is testing its PhysicalWorks robot training and operation platform on-site and plans to enhance collaboration with major global tech firms, including Nvidia, Microsoft, and Amazon Web Services.