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Investing.com -- Samsung SDS reported an operating profit of ₩232 billion for the third quarter of 2025, missing consensus estimates by 3% due to slower growth in its IT Service segment, which increased just 3% year-over-year.
The company’s cloud business showed significant deceleration, growing only 6% compared to 20% in the previous quarter. Within the cloud segment, Managed Service Provider (MSP) posted flat year-over-year growth while Software as a Service (SaaS) declined 5%.
The logistics segment contributed ₩35 billion to operating profit for the quarter.
Despite the slowdown, management maintained its target of 20% year-over-year growth for the cloud business and expects improved performance in the fourth quarter of 2025. The company attributed the third quarter weakness to a high comparison base from the previous year, which had benefited from numerous cloud migration projects.
Samsung SDS also cited delays in securing capacity for its Dongtan data center as a factor behind the slower growth in Cloud Service Provider (CSP) business, which still managed to grow 18% year-over-year. The company expects these capacity issues to be resolved by December, potentially driving sales in early 2026.
Regarding its Gumi project, Samsung SDS confirmed it has secured land and is currently reviewing construction designs. The company indicated it would take a flexible approach to GPU purchases based on demand.
Morgan Stanley noted that while the weak quarter raises some concerns about growth outlook for existing business, Samsung SDS’s expanding AI initiatives could offset these worries. These initiatives include the National Computing Center Project, where an SDS consortium is under review as the sole applicant, and a possible data center order from OpenAI following a letter of intent signed in early October.
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