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Corning (GLW)
NYSE:GLW
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Corning
(NYSE:GLW)
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Rating:70Outperform
Price Target:
$176.00
▲(17.10% Upside)
Action:ReiteratedDate:02/23/26
The score is driven primarily by improving fundamentals and a positive earnings outlook (strong guidance, upgraded multi-year growth targets, and Optical Communications momentum). Technicals are also supportive with a strong uptrend, though momentum is overheated. The main constraint is valuation: the high P/E and modest yield reduce margin of safety despite the improved outlook.
Positive Factors
Major customer agreements and domestic production commitments
Large, multiyear commitments from Meta and Apple materially increase revenue visibility and underpin capacity expansion. Domestic production commitments reduce geopolitical/supply risk and support multi-year demand for high-density optical and cover glass, anchoring a durable growth runway and lower revenue volatility.
Upgraded SpringBoard plan with sustained margin gains
The upgraded SpringBoard targets and ~390 bps margin expansion demonstrate successful execution of structural improvements. Clear multi-year sales and margin targets indicate scalable product/volume economics and management confidence, supporting a lasting improvement in profitability if execution continues.
Material free cash flow improvement and disciplined allocation
Significant FCF improvement strengthens the company's ability to fund organic investment, long‑dated debt maturity, and share buybacks. Sustained higher cash generation provides optionality for capex to support growth initiatives while maintaining returns to shareholders over the medium term.
Negative Factors
Elevated absolute debt and leverage
Although leverage has improved from 2024, sizeable absolute debt (~$8.4B) and a debt-to-equity around 0.71 limit flexibility during downturns. Elevated leverage increases refinancing and cash‑flow servicing risk, constraining the firm's ability to accelerate investment or absorb cyclical demand shocks without tapping capital markets.
Suboptimal cash conversion and choppy free cash flow
A persistent gap between reported earnings and cash conversion—FCF ~52% of net income and operating cash flow under 0.5—signals working-capital timing and conversion issues. Choppy FCF complicates reliable reinvestment, deleveraging, and smoothing shareholder returns across business cycles.
Solar/scale-up ramp costs and timing uncertainty
The Hemlock/solar capacity ramp is a multi-year structural growth initiative but is currently margin dilutive. Achieving the targeted ~$2.5B revenue and company‑average margins by 2028 depends on flawless scale-up and cost control; execution or timing slippage could delay returns and pressure medium‑term profitability.
Corning (GLW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$130.06B
Dividend Yield1.25%
Average Volume (3M)10.58M
Price to Earnings (P/E)82.7
Beta (1Y)1.11
Revenue Growth18.27%
EPS Growth771.78%
CountryUS
Employees56,300
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)N/A
Shares Outstanding857,948,100
10 Day Avg. Volume11,531,374
30 Day Avg. Volume10,583,689
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)6.38
Price to Sales (P/S)4.82
P/FCF Ratio53.29
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue8.81
Enterprise Value/Gross Profit24.54
Enterprise Value/Ebitda36.98
Forecast
1Y Price Target
$136.30Price Target Upside-9.31% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)3.08
Revenue Forecast (FY)$18.64B
Corning Business Overview & Revenue Model
Company DescriptionCorning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide. The company's Display Technologies segment offers glass substrates for liquid crystal displays and organic light-emitting diodes used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, including cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories. This segment also offers its products to businesses, governments, and individuals. Its Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics, crystals, precision metrology instruments, software; as well as ultra-thin and ultra-flat glass wafers, substrates, tinted sunglasses, and radiation shielding products. This segment serves various industries, including mobile consumer electronics, semiconductor equipment optics and consumables; aerospace and defense optics; radiation shielding products, sunglasses, and telecommunications components. The company's Environmental Technologies segment offers ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products comprising consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware and equipment under the Corning, Falcon, Pyrex, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.
How the Company Makes MoneyCorning generates revenue through several key streams, primarily from the sale of its technologies and products across its various business segments. The Display Technologies segment is a significant contributor, providing glass substrates for LCD and OLED displays, catering to consumer electronics and television manufacturers. The Optical Communications segment offers optical fibers, cable, and connectivity solutions, which are essential for telecommunications infrastructure. Environmental Technologies focuses on products like catalytic converters for automotive applications, while the Life Sciences segment provides laboratory glassware and other products for research and medical use. Corning also engages in strategic partnerships with major technology firms, enhancing its market reach and revenue potential. Factors such as innovation, strong customer relationships, and an expanding global market for high-tech glass solutions further bolster its earnings.
Corning Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across Corning’s various business lines, indicating which areas are performing well and where there might be room for growth or risk.
Breaks down sales across Corning’s various business lines, indicating which areas are performing well and where there might be room for growth or risk.
Data provided by:
The Fly
The FlyCorning Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: Corning reported strong Q4 and full‑year results with double‑digit sales growth, outsized EPS and margin expansion, substantial free cash flow improvement, and an upgraded multi‑year SpringBoard growth plan supported by major customer agreements (Meta, Apple). Optical Communications is a clear growth engine and management provided confident near‑term guidance. Key near‑term negatives include the solar ramp‑related EPS drag, some segment seasonality (display), automotive softness, and remaining timing/coverage uncertainty around additional customer agreements and longer‑term scale‑up adoption. Overall, the positives — new large customer commitments, upgraded growth targets, improved margins, and cash generation — materially outweigh the near‑term operational and timing challenges.Q4-2025 Updates
Positive Updates
Strong Quarterly and Annual Financial Performance
Q4 sales grew 14% year‑over‑year to $4.41B and Q4 core EPS rose 26% to $0.72. Full‑year 2025 sales were a record $16.4B (up 13% YoY) and EPS was $2.52 (up 29% YoY). Operating margin expanded to 20.2% in Q4 and full‑year operating margin was 19.3% (expanding ~180 bps YoY). ROIC improved to 14.2%.
Material Free Cash Flow Improvement
Full‑year free cash flow nearly doubled to ~$1.72B in 2025 from $818M in 2023, supporting reinvestment and shareholder returns.
SpringBoard Plan Outperformance and Upgrade
Two years into the SpringBoard plan Corning expanded operating margin ~390 bps since launch, grew EPS ~85% from the launch point and upgraded the plan: internal target now adds $11B incremental annualized sales by 2028 (up from $8B), internal adds $6.5B by 2026 (up from $6B) and high‑confidence adds $5.75B by 2026 (up from $4B).
Major Customer Agreements (Meta & Apple) Strengthen Visibility
Announced a multiyear agreement with Meta (up to $6B) to supply GenAI high‑density optical fiber, cable and connectivity solutions with US production; referenced Apple’s $2.5B commitment for domestic cover glass production — both increase revenue visibility and underpin capacity expansion plans.
Optical Communications Led Growth
Optical Communications Q4 sales $1.7B (up 24% YoY) and FY sales $6.3B (up 35% YoY). FY net income for Optical rose ~71% YoY to ~$1.0B. Enterprise/data center sales grew ~61% YoY and hyperscale grew faster, driven by adoption of new GenAI products.
Segment Outperformance — Specialty Materials and Hemlock Growth
Specialty Materials Q4 sales $544M (up 6% YoY) and Q4 net income up 22% to $99M; full‑year sales $2.2B (up 10% YoY) and net income up 41% to $367M. Hemlock & Emerging Growth Q4 sales rose 62% YoY to $526M driven by polysilicon and solar modules.
Capital Allocation Discipline and Shareholder Returns
2026 CapEx planned at ~$1.7B (a few hundred million above depreciation) to fund growth while expecting materially higher free cash flow. Corning emphasized returning excess cash mainly via buybacks (historical repurchases ~800M shares, resumed buybacks since 2024).
Near‑term Guidance and Momentum
Q1 2026 guidance calls for ~15% YoY sales growth to $4.2–$4.3B and EPS growth of ~26% to $0.66–$0.70, with management expecting accelerating growth through the year.
Negative Updates
Solar Ramp Dragging Near‑Term Profitability
Hemlock/solar capacity ramp is creating a near‑term profitability headwind: Q4 net income for Hemlock & Emerging was only $1M despite 62% revenue growth, and management estimates a temporary EPS drag of ~$0.03–$0.05 in Q1 2026 as capacity is brought online.
Display Margin/Reporting Inconsistency and Near‑term Seasonality
Display segment Q4 sales were $955M and full‑year net income $993M (above the $900–$950M target), but the call reported a full‑year net income margin of 17% versus a stated target of ~25%, indicating either a metric inconsistency or margin pressure. Management expects glass market volume to be down mid‑single digits sequentially in Q1 due to seasonality.
Automotive End‑Market Weakness
Automotive segment sales were $440M in Q4, slightly down YoY and full‑year sales down ~3%. Weakness in heavy‑duty diesel markets in North America and Europe remains a headwind.
Solar Profitability Timeline and Ramp Costs
Although management targets solar to be a $2.5B revenue stream by 2028 with margins at/above company average, current ramp costs and capacity build are depressing near‑term net income and require successful scale and timing execution to reach targeted profitability.
Uncertainty on Inclusion of Some Customer Agreements
Management indicated several additional large, similar‑sized long‑term customer agreements are in process but have not been fully baked into SpringBoard numbers yet; the financial impact is expected to materialize more in 2027–2028, creating some timing uncertainty for growth ramp modeling.
Currency and Pricing Risks
Display results rely in part on prior price increases to offset a weak yen; management noted hedges are in place for 2026 and beyond but indicated they may need further price actions if currency moves more than modeled, introducing potential pricing risk.
Scale‑up (Photonics Inside Compute) Timing Uncertainty
Management views 'scale‑up' optical integration into servers/switches as likely over time but did not include significant scale‑up revenue in the upgraded SpringBoard estimate, citing uncertainty on timing (could be within or beyond the 2028 horizon).
Company Guidance
Management guided Q1 core sales to grow about 15% year‑over‑year to $4.2–$4.3 billion and core EPS to rise roughly 26% to $0.66–$0.70 (with a temporary solar‑ramp drag of ~$0.03–$0.05 in Q1), reiterated an operating‑margin target at or above 20%, and said 2026 capital expenditures will be about $1.7 billion (vs. depreciation around $1.3 billion) while still expecting materially higher free cash flow year‑over‑year; they upgraded SpringBoard targets to add $6.5 billion incremental annualized sales by 2026 (high‑confidence $5.75B) and $11 billion by 2028 (up from $8B), implying an ~ $24 billion annualized run‑rate by 2028, plan to prioritize organic investment with customer cost‑sharing (prepayments/long‑term commitments), maintain a strong balance sheet (average debt maturity ~21 years) and continue returning excess cash primarily via share buybacks, and noted display net‑income goals of $900–$950 million (target ~25% margin) and a solar plan to reach ~$2.5 billion revenue by 2028 with margins at or above the company average.Corning Financial Statement Overview
Summary
Fundamentals are improving, led by a meaningful 2025 profitability step-up (higher net/operating margins and re-accelerating revenue). Offsetting this, cash conversion is still weak versus earnings and free cash flow has been choppy, while leverage remains meaningful in absolute terms despite being manageable.Income Statement
Profitability improved meaningfully in 2025 versus 2024, with net margin rising to ~10.2% (from ~3.9%) and operating margin expanding to ~14.6% (from ~8.7%), alongside stronger gross margin (~36.0%). Revenue growth also re-accelerated in 2025 (+4.8%) after a weaker 2024. The key weakness is volatility across the period (notably the 2023 revenue decline and prior margin swings), suggesting earnings are still somewhat cyclical and sensitive to demand/price mix.74
Positive
Balance Sheet
Leverage is moderate: 2025 debt-to-equity is ~0.71, improved from 2024 (~0.76) but still higher than the 2021 level (~0.57). Equity is sizable ($11.8B in 2025) and returns improved materially in 2025 (return on equity ~13.5% vs ~4.7% in 2024), supporting balance-sheet quality. The main risk is that debt remains large in absolute terms (~$8.4B) and leverage has not steadily trended down over the full period, which can limit flexibility in weaker cycles.63
Positive
Cash Flow
Cash generation improved in 2025 with free cash flow up ~21.6% to $1.41B, indicating better conversion versus 2024. However, cash conversion remains a watch item: free cash flow is only ~52% of net income in 2025 (similar to 2024), and operating cash flow relative to earnings is below 0.5 in 2025, implying working-capital or other timing effects are dampening reported cash generation. Free cash flow has also been choppy over the cycle (notably declines in 2022 and 2023).60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.63B | 13.12B | 12.59B | 14.19B | 14.08B |
| Gross Profit | 5.51B | 4.28B | 3.93B | 4.51B | 5.06B |
| EBITDA | 3.73B | 2.49B | 2.51B | 3.54B | 4.21B |
| Net Income | 1.60B | 506.00M | 581.00M | 1.32B | 1.91B |
Balance Sheet | |||||
| Total Assets | 30.98B | 27.73B | 28.50B | 29.50B | 30.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.53B | 1.77B | 1.78B | 1.67B | 2.15B |
| Total Debt | 10.22B | 8.09B | 8.48B | 7.82B | 7.83B |
| Total Liabilities | 18.67B | 16.66B | 16.63B | 17.22B | 17.61B |
| Stockholders Equity | 11.81B | 10.69B | 11.55B | 12.01B | 12.33B |
Cash Flow | |||||
| Free Cash Flow | 1.41B | 974.00M | 615.00M | 1.01B | 1.77B |
| Operating Cash Flow | 2.69B | 1.94B | 2.00B | 2.62B | 3.41B |
| Investing Cash Flow | -1.24B | -744.00M | -1.00B | -1.35B | -1.42B |
| Financing Cash Flow | -1.67B | -1.16B | -883.00M | -1.65B | -2.45B |
Corning Technical Analysis
Positive
150.30
Price Trends
105.87
Positive
95.74
Positive
77.89
Positive
Market Momentum
13.53
Negative
70.50
Negative
86.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLW, the sentiment is Positive. The current price of 150.3 is above the 20-day moving average (MA) of 128.55, above the 50-day MA of 105.87, and above the 200-day MA of 77.89, indicating a bullish trend. The MACD of 13.53 indicates Negative momentum. The RSI at 70.50 is Negative, neither overbought nor oversold. The STOCH value of 86.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLW.
Corning Risk Analysis
Corning disclosed 20 risk factors in its most recent earnings report. Corning reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Corning Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $48.41B | 29.26 | 19.78% | 1.70% | 16.56% | 3.19% | |
76 Outperform | $186.23B | 45.32 | 36.80% | 0.54% | 47.37% | 72.30% | |
71 Outperform | $9.59B | 85.66 | 7.61% | 0.89% | 10.23% | 25.53% | |
71 Outperform | $70.85B | 34.82 | 16.27% | 1.21% | 8.94% | -39.90% | |
70 Outperform | $130.06B | 82.73 | 14.19% | 1.25% | 18.27% | 771.78% | |
63 Neutral | $47.78B | 265.14 | 3.63% | ― | 20.80% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GLW
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150.30
100.80
203.65%
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250.14
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235.79
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.