Samsung SDS Reports 8.1% Dip in Q3 Operating Profit
Samsung SDS Reports 8.1% Dip in Q3 Operating Profit
Samsung SDS has announced its preliminary Q3 2025 results, reporting a decrease in both revenue and operating profit. According to the data released on October 30, 2025, Samsung SDS recorded ₩3.3913 trillion in revenue and ₩232.3 billion in operating profit for the third quarter. This represents a 5% decrease in revenue and an 8.1% decrease in operating profit compared to the same period last year. The decline is primarily attributed to decreased revenue in both the IT services and logistics sectors. Specifically, the IT services sector experienced a revenue decline due to increased competition and delays in some projects. While the cloud business maintained growth, it wasn't enough to offset the overall performance decline.
Looking at the performance by sector, Samsung SDS's IT services sector recorded ₩1.5957 trillion in revenue, a 2.1% decrease compared to the same period last year. This is interpreted as a slowdown in revenue growth due to intensified market competition and delays in some projects, despite the increasing demand for digital transformation (DX). To overcome this situation, Samsung SDS plans to reorganize its business around high value-added IT services such as artificial intelligence (AI), cloud, and security, and secure growth momentum by expanding its external business. However, it remains to be seen how Samsung SDS will overcome the sluggish performance of its IT services sector amidst intensifying market competition. It is also of interest how Samsung SDS's IT service strategy will synergize with the economic policy direction of South Korean President Jae-myung Lee.
The cloud business showed relatively solid growth. Samsung SDS's cloud business revenue was ₩674.6 billion, a 5.9% increase compared to the same period last year. In particular, revenue from the cloud service provider (CSP) business increased by 18%, driving the growth of the cloud business. This is attributed to the steady increase in demand for cloud transformation from companies, as well as the recognition of Samsung SDS's cloud technology and service capabilities in the market. Samsung SDS plans to further strengthen its competitiveness in the cloud market by strengthening its cloud MSP (Managed Service Provider) business and expanding its PaaS (Platform as a Service) business area. Some analysts also suggest that changes in IT policy under the US President Donald Trump administration could have a direct or indirect impact on Samsung SDS's cloud business.
The logistics sector saw a significant decrease in revenue. Samsung SDS's logistics sector revenue was ₩1.7956 trillion, a 7.4% decrease compared to the same period last year. This is attributed to the global economic slowdown, along with a decline in ocean freight rates and a decrease in cargo volume. However, the digital logistics platform 'Cello Square' continues to grow steadily. Cello Square's registered customers increased by 31% year-over-year to 23,451 companies, expanding its presence in the digital logistics market. Samsung SDS aims to increase customer satisfaction and strengthen its competitiveness in the global logistics market by providing effects such as logistics process automation, visibility, and cost reduction through Cello Square. However, given the still uncertain global economic situation, it is also projected that it may take considerable time for the logistics sector to recover its performance.
Overall, Samsung SDS recorded sluggish performance in Q3 2025, with both revenue and operating profit decreasing. The growth of the cloud business partially offset the underperformance of the IT services and logistics sectors, but it was not enough to prevent the overall decline in performance. Samsung SDS plans to reorganize its business around high value-added IT services such as AI, cloud, and security, and improve its performance by expanding its external business and strengthening its digital logistics platform. However, with internal and external challenges such as the global economic slowdown and intensified market competition, it remains to be seen how Samsung SDS will overcome these obstacles. In particular, it is necessary to carefully analyze how the economic policy direction of the South Korean President Jae-myung Lee's government and the IT policy changes of the US President Donald Trump's government will affect Samsung SDS's business strategy.
