Corning's Q2 Earnings Surge on AI-Driven Demand for Optical Connectivity Products

Corning forecasts upbeat quarterly core sales on AI-driven demand

July 29 (Reuters) - Specialty glass maker Corning (GLW.N), opens new tab forecast third-quarter core sales above Wall Street estimates on Tuesday, led by artificial intelligence-driven demand for its optical connectivity products. Shares of the company rose about 6% in premarket trading. AI has been a growth driver for Corning's products, such as cables and connectors, which are increasingly used by hyperscale data centers to support the massive computing and data transmission demands. "We also expect an additional growth driver to emerge in the coming months, as new and existing customers seek to leverage our large U.S. advanced manufacturing footprint," CEO Wendell Weeks said. Based in New York, Corning also sells a break-resistant Gorilla Glass for mobile phones, tablets and smart watches, and has produced durable glass with infused color for the back of Apple's (AAPL.O), opens new tab iPhone 15 and iPhone 15 Plus devices. Earlier this month, EU antitrust regulators accepted Corning's offer to waive exclusive deals with mobile phone makers and glass processing companies and scrap purchasing clauses to end an eight-month-long investigation and stave off a possible fine. Corning's largest unit - Optical communications - reported net sales of $1.57 billion in the second quarter, a rise of 41% from a year ago. Its core sales in the quarter rose 12% to $4.05 billion, compared with estimates of $3.86 billion, according to data compiled by LSEG. Corning expects third-quarter core sales to be around $4.2 billion, beating estimates of $4.01 billion. The company expects quarterly core earnings per share between 63 cents and 67 cents, compared with estimates of 61 cents. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab

Corning Stock Pops as Smartphone Glassmaker and AI Boom Beneficiary Tops Expectations

JPMorgan analysts said Corning could benefit from Apple launching a foldable iPhone, which the bank expects next year. Shares of Corning (GLW), a specialized glassmaker for smartphones and AI data centers, popped Tuesday as the company's second-quarter results exceeded expectations. Corning reported sales of $3.86 billion, up 19% year-over-year and above the analyst consensus from Visible Alpha. The surge was driven by optical communications sales, which rocketed 41% to $1.57 billion, comfortably ahead of Street estimates. The company's adjusted earnings of 60 cents per share were a record high and beat expectations, as did its current-quarter sales and profit forecasts. Shares of Corning jumped 13% in recent trading. The stock has increased in price by roughly a third in 2025, as the glassmaker has been a lesser-known beneficiary of the AI boom. In addition to smartphone and television screens, Corning makes fiber optic cabling solutions for data centers, which have seen a surge in demand as investment in AI has grown. In the longer term, JPMorgan analysts say Corning has a unique upside opportunity: a foldable iPhone. The bank expects Apple (AAPL) to launch a foldable device as part of the iPhone 18 lineup in 2026. The increase in total glass area, as well as the complexity of the foldable model, could be a catalyst for Corning, JPMorgan said Tuesday. JPMorgan has an overweight rating for the company. Meanwhile, Citi reiterated a buy rating and $60 price target, which Corning has exceeded with its Tuesday rally. The consensus target of brokers tracked by Visible Alpha is roughly $58.

Why Is Corning Stock Soaring On Tuesday? - Corning (NYSE:GLW)

Corning Inc. GLW reported better-than-expected second-quarter 2025 results Tuesday and announced a third-quarter outlook, citing continued strong demand for its generative AI and U.S.-made solar products. The company posted adjusted earnings of 60 cents per share, beating analyst estimates of 57 cents. Core sales rose 12% year-over-year to $4.04 billion, exceeding the $3.86 billion consensus. Core EPS grew 28%, while adjusted free cash flow increased 28% to $451 million. The core operating margin expanded by 160 basis points to 19%. Also Read: Amphenol Stock Surges After Q2 Beat, Sets Sights On 36% Sales Jump In Q3 On a GAAP basis, Corning reported $3.86 billion in revenue, up from $3.25 billion a year ago, and net income of $469 million, compared with $104 million in the same quarter last year. The company said the difference between GAAP and core EPS primarily reflected mark-to-market adjustments on currency-related contracts and constant currency changes. Optical Communications revenue rose 41% to $1.57 billion, driven by an 81% year-over-year increase in enterprise sales. Display sales declined 11% year over year to $898 million. "Year over year, core sales grew 12% while core operating margin expanded 160 basis points to 19%, core EPS grew 28%, and core ROIC improved 210 basis points to 13.1%," said Ed Schlesinger, executive vice president and chief financial officer. "Additionally, adjusted free cash flow grew 28% year-over-year to $451 million." Specialty Materials revenue climbed 9% to $545 million, while Automotive sales declined 4% to $460 million. Life Sciences held steady at $250 million. Hemlock and Emerging Growth Businesses' revenue increased 31% to $326 million. Operating cash flow for the quarter was $708 million, with adjusted free cash flow at $451 million, both up from the prior year. "We expect our strong Springboard performance to continue," said Wendell P. Weeks, chairman and chief executive officer. "Customer response to our new Gen AI and U.S.-made solar products has been remarkable. We're driving more Corning content into our Mobile Consumer Electronics, Display, Automotive, and Optical Communications platforms. We also anticipate new growth drivers to emerge, as customers increasingly leverage our large U.S. advanced manufacturing footprint." Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedOutlook For the third quarter, Corning expects core sales of $4.2 billion, above the Street estimate of $4.01 billion, and adjusted EPS in the range of 63 to 67 cents, ahead of the 61-cent consensus. Management anticipates continued strong performance under its Springboard plan, with double-digit year-over-year growth in both sales and earnings. Guidance includes a $0.01 to $0.02 impact from tariffs and a $0.02 to $0.03 temporary cost increase associated with scaling production to meet demand for Gen AI and solar offerings. Price Action: GLW shares are trading higher by 13.3% to $62.77 at last check Tuesday. Read Next: SoFi Technologies Stock Surges On 'Exceptional' Q2 Earnings, Raised Guidance Photo via Shutterstock GLWCorning Inc$62.7513.3%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum74.44Growth39.17Quality48.59Value36.04Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Corning forecasts upbeat quarterly core sales on AI-driven demand

(Reuters) -Specialty glass maker Corning forecast third-quarter core sales above Wall Street estimates on Tuesday, led by artificial intelligence-driven demand for its optical connectivity products. Shares of the company rose about 6% in premarket trading. AI has been a growth driver for Corning's products, such as cables and connectors, which are increasingly used by hyperscale data centers to support the massive computing and data transmission demands. "We also expect an additional growth driver to emerge in the coming months, as new and existing customers seek to leverage our large U.S. advanced manufacturing footprint," CEO Wendell Weeks said. Based in New York, Corning also sells a break-resistant Gorilla Glass for mobile phones, tablets and smart watches, and has produced durable glass with infused color for the back of Apple's iPhone 15 and iPhone 15 Plus devices. Earlier this month, EU antitrust regulators accepted Corning's offer to waive exclusive deals with mobile phone makers and glass processing companies and scrap purchasing clauses to end an eight-month-long investigation and stave off a possible fine. Corning's largest unit - Optical communications - reported net sales of $1.57 billion in the second quarter, a rise of 41% from a year ago. Its core sales in the quarter rose 12% to $4.05 billion, compared with estimates of $3.86 billion, according to data compiled by LSEG. Corning expects third-quarter core sales to be around $4.2 billion, beating estimates of $4.01 billion. The company expects quarterly core earnings per share between 63 cents and 67 cents, compared with estimates of 61 cents. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)