What Corning (GLW) Said on Its Q3 Earnings Call

Key Points

• Corning exceeded third-quarter guidance: Sales rose 19% year over year to $5.1 billion, core EPS increased 36% to $0.91, and margins expanded. The company forecasts roughly 19% sales growth in Q4, with revenue of $5.2 billion to $5.3 billion.
• Optical Communications drove growth: Segment sales jumped 44% to $2.4 billion, fueled by AI data-center demand, generative-AI products and enterprise networking. Corning said its data-center interconnect opportunity could exceed its previous $1 billion target and noted tight supply for high-density optical products.
• Springboard expansion remains ahead of schedule: The projected Q4 sales run rate of about $21 billion would surpass the company’s $20 billion 2026 target. Corning expects approximately $2 billion in 2026 capital spending, primarily for Optical Communications capacity, while weaker display and solar profitability remain challenges.

Corning NYSE: GLW reported third-quarter 2026 results that exceeded its guidance, led by continued growth in Optical Communications and demand tied to artificial intelligence data centers. The company also projected another quarter of roughly 19% year-over-year sales growth in the fourth quarter as it advances its long-term “Springboard” expansion plan.

Chairman, Chief Executive Officer and President Wendell Weeks said third-quarter sales rose 19% from a year earlier to $5.1 billion, while core earnings per share increased 36% to $0.91. The company said gross margin expanded 150 basis points to 40.5%, operating margin increased 310 basis points to 22.7%, and return on invested capital rose 330 basis points to 16.7%.

Corning generated $661 million in free cash flow during the quarter after investing more than $500 million in capacity additions, Weeks said. The company noted that its core results are non-GAAP measures and that differences from GAAP earnings principally reflected adjustments related to hedged exposures and discrete tax items.

Fourth-Quarter Outlook and Springboard Targets

For the fourth quarter, Corning forecast sales of $5.2 billion to $5.3 billion, representing approximately 19% year-over-year growth. It expects earnings per share of $0.96 to $1.00, also approximately 36% above the prior-year period.

Weeks said the midpoint of the fourth-quarter revenue outlook would represent an annualized sales run rate of about $21 billion. That would put the company ahead of its target to reach a $20 billion annualized run rate by the end of 2026 under its Springboard plan.

In May, Corning updated the plan to target annualized revenue run rates of $20 billion by the end of 2026, $30 billion by the end of 2028 and $40 billion by the end of 2030. Weeks said the company expects its compound annual sales growth rate to accelerate to 19% from 2027 through 2030, following roughly 15% growth during the first three years of the plan.

“In the first three years of Springboard, from our starting point through quarter four 2026, we will grow sales 60% and grow EPS much faster at over 150%,” Weeks said.

The company said its customer agreements increasingly include mechanisms under which customers provide upfront cash to support capacity construction. Corning returns those deposits as customers purchase committed volumes. Chief Financial Officer Ed Schlesinger said customer deposits, net of amounts returned under prior arrangements, totaled $639 million over the first nine months of 2026.

Corning generated $2.3 billion in free cash flow in the first nine months while investing $1.3 billion in capital expenditures, Schlesinger said. The company expects about $2 billion in 2026 capital spending, primarily supporting Optical Communications growth.

Optical Communications Drives Results

Optical Communications was the company’s largest growth contributor. Segment sales increased 44% year over year to $2.4 billion, while net income rose 80% to $532 million, producing record segment profitability.

Enterprise sales climbed 84%, and sales of generative-AI products more than doubled from a year earlier, outpacing GPU unit growth, Schlesinger said. Corning’s Enterprise business has expanded from a $1.4 billion sales run rate at the launch of Springboard to a $6 billion run rate, according to the company.

Weeks said demand continues to be driven largely by “scale-out” data-center networking, but he expects optical connections to begin gaining momentum in “scale-up” network architectures in 2028. He said current scale-out architectures use about 16 fibers per GPU, while a fully optical scale-up architecture could use 160 fibers per GPU.

Carrier sales grew 4%, supported by data-center interconnect demand. During the quarter, Corning announced long-term agreements with Zayo, Verizon and AT&T for fiber and connectivity products supporting broadband and data-center interconnect network expansions.

Schlesinger said Corning now expects its data-center interconnect opportunity to exceed its prior target of a $1 billion business by the end of the decade, both in timing and magnitude, though he did not provide a revised forecast.

Weeks acknowledged tight availability for some of Corning’s newest high-density optical products as both enterprise AI customers and traditional carrier customers seek more capacity. He said allocation decisions emphasize long-standing customer relationships and agreements in which customers help fund capacity expansion.

Glass, Solar and Other Businesses

Glass Innovations sales declined 3% year over year to $1.5 billion, as weaker end markets affected by memory prices offset the company’s “More Corning” content strategy. Third-quarter television unit volumes declined 4%, while notebook and handheld unit volumes were down about 20%, according to Schlesinger. Segment net income fell 10% to $328 million.

Corning said it recently announced display-glass substrate price adjustments that will begin taking effect in the fourth quarter, addressing a weaker yen and higher costs for critical materials and energy. Schlesinger said the adjustments are principally intended to affect 2027 and beyond rather than materially impact fourth-quarter results.

The company also said that by the end of 2026, all cover glass for iPhones, including iPhone Duo, and Apple Watch devices sold worldwide will be produced at its Harrodsburg, Kentucky, facility.

Automotive sales rose 4%, aided by a recovery in the North American Class 8 truck market, while segment net income declined 1% to $67 million. Life Sciences and Emerging Growth sales increased 1%, although net income declined by $13 million due to investments in emerging-growth programs.

Solar sales increased 37% to $436 million, though the segment reported a $7 million net loss. Schlesinger said Corning is ramping wafer and module production more slowly than expected, but expects profitability to improve as productivity rises. He said recent U.S. Section 232 trade action improved pricing conditions and demand for U.S.-made solar products.

Looking ahead, Schlesinger said Corning intends to prioritize organic investment, maintain a strong balance sheet and return excess cash primarily through share repurchases. He said the company has no current plans to use the $2 billion at-the-market equity program it filed previously, describing it as a balance-sheet tool available if needed.

About Corning (NYSE:GLW)

Corning Incorporated NYSE: GLW is a technology company that develops and manufactures specialty glass, ceramics and optical-fiber products. Its materials and engineering expertise support communications networks, consumer electronics, automotive systems, life sciences and other industrial applications.

The company's products include optical fiber, cable and connectivity solutions used in telecommunications infrastructure; glass substrates for televisions, computer monitors and other displays; durable cover glass for mobile devices; emissions-control components for vehicles; laboratory glassware and consumables; and specialized glass and ceramic materials for scientific, industrial and semiconductor applications.

Founded in 1851 and headquartered in Corning, New York, the company serves customers through operations and facilities across North America, Europe, Asia and other international markets.

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