Company Reports

Corning's second-quarter results beat guidance, with non-GAAP sales rising 17% year over year to $4.7 billion and non-GAAP operating margin rising 190 basis points year over year to 20.9%. Shares sold off nearly 20% intraday July 28 as guidance appears to have disappointed the market.

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 175 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. We point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and artificial intelligence data centers as recent evidence of the pivot toward growth.

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 175 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. We point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and artificial intelligence data centers as recent evidence of the pivot toward growth.

Corning held an investor event where it significantly raised its long-term revenue targets. It now expects $30 billion in annualized revenue exiting 2028, rising to $40 billion in annualized revenue exiting 2030. This implies a 19% compound annual growth rate between 2026 and 2030.

Corning reported good first-quarter results at the top end of its guidance ranges, highlighted by optical fiber growth. Core sales rose 18% year over year to $4.3 billion. Guidance calls for continued growth, with $4.6 billion in core sales implying 14% year-over-year growth (6% sequentially).

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 175 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. We point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and artificial intelligence data centers as recent evidence of the pivot toward growth.

Corning reported positive fourth-quarter results and first-quarter guidance Jan. 28. Management upgraded its "Springboard" plan, now accounting for $11 billion in incremental sales exiting 2028, compared with 2023 levels, versus $8 billion previously.

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 175 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. We point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and artificial intelligence data centers as recent evidence of the pivot toward growth.

Corning and Meta Platforms announced a long-term supply agreement for optical fiber cable, targeting up to $6 billion in sales through 2030. Corning will expand its optical fiber capacity in North Carolina significantly. It will release fourth-quarter results on Jan. 28.

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 175 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. We point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and artificial intelligence data centers as recent evidence of the pivot toward growth.

Corning's third-quarter results were positive and at the high ends of guidance. Non-GAAP sales rose 14% year over year to $4.27 billion, with non-GAAP operating margin up 130 basis points year over year at 19.6%. Fourth-quarter guidance implies similar year-over-year growth and margin expansion.

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 170 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. Most recently, we point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and AI data centers as evidence of the pivot toward growth.

Corning's second-quarter results beat top- and bottom-line guidance. Non-GAAP revenue rose 12% year over year and 10% sequentially to $4.05 billion, with non-GAAP operating margin rising 100 basis points sequentially to 19%. Third-quarter guidance implies sequential growth and margin expansion.

Corning reported first-quarter results slightly ahead of management guidance, highlighted by core sales rising 13% year over year to $3.68 billion. Management guided to 5% sequential growth from these revenue levels and also reiterated its long-term Springboard targets as updated in March.

Narrow-moat Corning unveiled new Springboard targets buoyed by strong data center infrastructure demand and a new solar market platform. The firm raised its risk-adjusted 2026 annualized sales run rate target to $4 billion from $3 billion and its non-risk-adjusted target to $6 billion from $5 billion, marking a 20% increase. Management also raised its first-quarter guidance, expecting core sales to exceed $3.6 billion and non-GAAP earnings per share to comfortably reach the higher end of the previous guidance ($0.48 to $0.52). Management didn’t update its 2028 Springboard targets, suggesting that upside from the strong data center demand is more weighted toward the near to medium term, leading us to maintain our long-term thesis. We view Corning’s updated targets as positive and raise our fair value estimate to $47 per share from $43 after incorporating better revenue growth. We view shares as fairly valued.

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 170 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. Most recently, we point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and AI data centers as evidence of the pivot toward growth.

Corning's fourth-quarter non-GAAP sales rose 18% year over year to $3.87 billion, and non-GAAP operating margin rose 220 basis points year over year to 18.5%. Management is confident in exceeding its risk-adjusted Springboard target for $3 billion in incremental revenue in 2026 versus 2023.

Corning is a materials science behemoth with differentiated glass products for televisions, notebooks, mobile devices, wearables, optical fiber, cars, and pharmaceutical packaging. In its 170 years of operation, the company has constantly innovated (including inventing glass optical fiber and ceramic substrates for catalytic converters) and oriented itself toward evolving demand trends that it can serve through its core competency of materials science. Most recently, we point to Corning’s domination of the smartphone cover glass market and deals for 5G networks and AI data centers as evidence of the pivot toward growth.

Many technology hardware stocks under our coverage plunged in Monday trading after reports of DeepSeek's R1 generative artificial intelligence model out of China offering performance parity to top US models at a much lower training cost. The iShares Semiconductor ETF was down 8% in midday trading.

We maintain our $37 fair value estimate for narrow-moat Corning as we believe our long-term thesis is bearing out. Corning’s financial results are recovering as demand returns in its primary end markets, and we have confidence in management’s Springboard plan for strong growth through 2026 and beyond. We believe revenue and margin will see a positive upward trajectory through 2026. The firm’s current growth is being led by data center and artificial intelligence investment, which generates good demand for Corning’s optical fiber. Even as we expect strong growth for fiber optics to continue, we believe the firm will retain diversified growth exposure. Its strength across disparate markets with centralized investment is a key tenet of our narrow moat rating and exemplary capital allocation rating. We see the stock as overvalued, especially considering its jump after results. We have rosy expectations for Corning’s growth but believe the shares have overshot fundamentals.