Key insights
- Corning beat Q3 expectations and provided strong Q4 guidance, driven by its Optical Communications segment and new AI products. Despite this, shares fell, suggesting market focus may be shifting to broader economic concerns or sector-specific headwinds rather than individual company performance. Apple's significant investment in Corning's facilities highlights a long-term growth opportunity, but the stock's reaction indicates immediate market sentiment is cautious.
Investing.com -- Corning Incorporated (NYSE: GLW) reported third-quarter 2025 financial results that exceeded analyst expectations, but shares fell over 5% following the announcement despite the company’s positive outlook.
The specialty glass and ceramics maker posted adjusted earnings per share of $0.67, beating analyst estimates of $0.66, while revenue reached $4.27 billion, surpassing the consensus forecast of $4.24 billion. Revenue grew 14% YoY from $3.73 billion in the same quarter last year.
For the fourth quarter, Corning provided guidance above Wall Street expectations, projecting revenue of approximately $4.35 billion compared to analyst estimates of $4.26 billion. The company expects adjusted EPS of $0.68 to $0.72, above the consensus of $0.67.
"We delivered another excellent quarter. Year over year, core sales grew 14% to $4.27 billion, and core EPS grew 24% to $0.67," said Wendell P. Weeks, chairman and chief executive officer. "Overall, as we approach the second anniversary of Springboard, the plan has been a tremendous success."
The company’s Optical Communications segment showed particularly strong performance, with Enterprise sales growing 58% YoY, driven by strong adoption of Corning’s new Gen AI products. Overall, the segment’s revenue increased 33% YoY to $1.65 billion.
Corning now expects to reach its Springboard operating margin target of 20% in Q4 2025, a full year ahead of plan. The company’s core operating margin expanded 130 basis points YoY to 19.6% in the third quarter.
The company also highlighted Apple’s recent $2.5 billion commitment to produce 100% of iPhone and Apple Watch cover glass at Corning’s Kentucky facility, which it says creates larger, longer-term growth opportunities.
Following the report, Mizuho analyst John Roberts maintained an Outperform rating on the stock, raising the price target to $97 from $90 per share. Roberts stated that "enterprise sales [are] being driven by both connecting data centers and sales within data centers," while carrier sales "are expected to accelerate near end of 2025 from BEAD rural broadband program."
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