Corning Incorporated

What they do

Corning produces glass, ceramic, and optical physics-based products for communications networks, displays, mobile devices, automotive, life sciences, and solar. Its segments are Optical Communications, Display, Specialty Materials, Automotive, and Life Sciences. Products include optical fiber, cable and connectivity, precision glass, cover materials, clean-air technologies, and polysilicon materials.

Revenue drivers

• Optical Communications — Largest segment; sales grew 32% to $2.07 billion in Q2 2026, driven by carrier and enterprise networks, with Enterprise Networks up 65% and AI-related products growing faster.
• Display — Contributed $238 million sales increase in 2025; sells precision glass for advanced displays.
• Specialty Materials — Sales increased $194 million in 2025; includes damage-resistant cover glass for mobile devices.
• Solar and Polysilicon — Solar sales grew 90% in Q2 2026; company expects this to become a revenue stream over $3 billion.

Recent performance

In Q2 2026, GAAP sales rose 17% year over year to $4.51 billion; core sales rose 17% to $4.74 billion. Core EPS grew 30% to $0.78, and core operating margin expanded 190 basis points to 20.9%. For the first half of 2026, GAAP net sales were $8.65 billion, up 18% from the prior year. Full-year 2025 net sales increased 19% to $15.63 billion, with income before taxes at $2.05 billion.

Strategy

Under the Springboard plan, Corning targets annualized core sales of $20 billion by end of 2026, $30 billion by 2028, and $40 billion by 2030. Management expects 19% sales CAGR from Q4 2026 to Q4 2030, with earnings growing faster, higher ROIC, and more free cash flow. The company is investing in capacity expansion, including a 10x increase in U.S. optical connectivity capacity and a 50%+ increase in U.S. fiber capacity, supported by long-term partnerships with Amazon and NVIDIA.

Risks

• Inflation and input costs — Inflationary pressures or shortages of commodities, raw materials, utilities, labor, or logistics could raise production costs and hurt profitability.
• Customer concentration in AI/data centers — A significant portion of growth relies on large customers like Amazon and NVIDIA; a slowdown in AI infrastructure spending could reduce demand.
• Solar segment profitability — Solar sales grew but profitability has been pressured; management expects improvement in Q3, but delays or higher costs could linger.
• Supply chain disruptions — Uncertain availability of materials and logistics instability could disrupt production and delivery capabilities, impacting customer orders.

Outlook

For Q3 2026, management expects core sales of $4.9–$5.0 billion (up ~16% year over year) and core EPS of $0.85–$0.89 (up ~28%). The company expects stronger Solar profitability as the ramp continues, toward a $3 billion revenue stream. Management expects continued growth from AI-related demand and the Springboard plan.