- Recognized a one-time retirement benefit expense of KRW 112 billion due to a change in the retirement allowance calculation criteria
- Performance recovery is expected in the second quarter, driven by the expansion of the cloud business, including increased adoption of GPUaaS in the public sector and the expansion of government-wide intelligent AI services
- Planning a KRW 10 trillion investment by 2031 for the transition to an AI full-stack-centered business and for new businesses and M&As
Samsung SDS unveiled its preliminary financial results for the first quarter of 2026, posting a revenue of KRW 3.3529 trillion and an operating profit of KRW 78.3 billion. Compared to the same period last year, the company’s revenue fell by 3.9%. Its operating profit dropped 70.8% due to a one-time recognition of KRW 112 billion in retirement benefit provisions following a change in the retirement allowance calculation criteria.
Revenue from the IT service sector was KRW 1.6105 trillion, slightly higher than the same period last year.
Revenue from the cloud business grew 5.8% YOY to KRW 690.9 billion, surpassing ITO revenue to account for the largest revenue share in the IT service sector.
Among the cloud businesses, the Samsung Cloud Platform (SCP)-based Cloud Service Provider (CSP) business posted a 12% YOY rise in revenue. This was driven by the increased adoption of GPU as a Service (GPUaaS) following rising demand for AI Transformation (AX) in the public sector, and the expansion of cloud network services. The Managed Service Provider (MSP) business recorded a 4% growth in revenue YOY, supported by increased revenue from the financial and public industries, as well as expanded collaborations with global partners.
In the logistics business, while revenue from Cello Square grew by more than 30%, total revenue declined 7.8% YOY to KRW 1.7424 trillion, due to decreased cargo volumes and falling freight rates.
Performance is projected to improve in the second quarter, driven by the expansion of the cloud business, including increased GPUaaS adoption in the public sector, growing revenue from the financial sector, and the spread of government-wide intelligent AI services.
By 2031, Samsung SDS plans to invest KRW 10 trillion, including KRW 1.2 trillion that was newly secured through collaboration with KKR (a leading global investment firm) and KRW 6.6 trillion in cash and cash equivalents. The aim is to drive an AI full-stack strategy -- covering AI infrastructure, AX and AI services, and AI platforms and solutions -- as well as strategic M&As.
Additionally, KRW 5 trillion will be invested in AI infrastructure, including the AI data center in Gumi, the National AI Computing Center, and new AI data centers to be built in response to market demand.
Samsung SDS will invest KRW 1 trillion to bolster its business competitiveness in AX and AI services, as well as in AI platforms and solutions. Furthermore, an additional KRW 4 trillion will be allocated to secure new growth engines, and aggressively pursue strategic M&As to expand global hubs.
Meanwhile, for the Design-Build-Operate (DBO) business -- unveiled as a new initiative during the 2025 financial results announcement in January -- the company is currently carrying out the conceptual design for a data center project by a major domestic asset manager, after winning the contract.
※ Definition of Terms
- Cloud Service Providers (CSPs) provide virtualized physical resources, such as software, storage, and servers, over a network.
- Managed Service Providers (MSPs) offer services – from consulting to network and infrastructure management, security, and monitoring – to support corporate clients in cloud adoption and operations.
- Design-Build-Operate (DBO) is a business model where a specialized firm is in charge of the design, construction, and operation of a data center.
| 2026 1Q | 2025 4Q | QoQ | 2025 1Q | YoY | |
|---|---|---|---|---|---|
| Revenue | 3352.9 | 3536.8 | -5.2% | 3489.8 | -3.9% |
| Operating Profit | 78.3 | 226.1 | -65.4% | 268.5 | -70.8% |
(Unit: KRW in billion)
