Corning (GLW) AI Stock Analysis

• Market Cap: $44.01B
• Dividend Yield: 2.17%
• Average Volume (3M): 4.81M
• Price to Earnings (P/E): 98.3
• Beta (1Y): 1.15
• Revenue Growth: 9.77%
• EPS Growth: -26.50%
• Country: US
• Employees: 56,300
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.54
• Shares Outstanding: 856,471,440
• 10 Day Avg. Volume: 3,973,864
• 30 Day Avg. Volume: 4,808,477
• PEG Ratio: -7.87
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.25
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 11.15
• Enterprise Value/Ebitda: 5.22
• 1Y Price Target: $51.29
• Price Target Upside: -1.02% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: $54.00 ▲(4.21%Upside)

Corning's strong earnings guidance and positive sentiment from the earnings call are significant positives, supporting future growth potential. However, technical indicators suggest caution due to overbought conditions, and the high P/E ratio raises concerns about overvaluation. Financial performance is stable, but areas like net profit margin and ROE need improvement.

Positive Factors

Customer Commitments

Corning has already secured customer commitments for 80% of its planned capacity over the next five years, indicating strong demand and business potential.

Earnings Potential

Manufacturing credits are expected to boost Corning's solar wafer operating margins, enhancing the company's earnings potential.

Solar Market Disruption

Corning is poised to disrupt the U.S. solar market and capture a significant share by leveraging its expertise in polysilicon manufacturing.

Negative Factors

Customer Commitment Risks

Corning still needs to secure further customer commitments and navigate risks to solar programs to achieve its goals in the solar wafer market.

Fab Utilization Decline

Fab utilization in May and June is expected to decrease below 80% from its peak level in 1Q25 in response to weaker demand.

TV Demand Uncertainty

TV demand outlook remains uncertain, and consumers are spending cautiously amid inflation concerns, which is leading to reduced panel purchases in 2Q25.

Corning Business Overview & Revenue Model

Company Description

Corning Incorporated is a leading innovator in materials science, with a distinguished history of delivering life-changing innovations. The company operates in five primary business sectors: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. Corning is renowned for its expertise in glass science, ceramics science, and optical physics, which it applies to develop products that enhance and enable a wide range of industries.

How the Company Makes Money

Corning makes money through a diversified revenue model centered around its five business segments. The Display Technologies segment primarily generates revenue from the sale of glass substrates used in LCDs for televisions, computers, and other devices. The Optical Communications segment earns income by providing optical fiber, cable, and hardware solutions for telecommunications networks. Environmental Technologies contributes to revenue by supplying ceramic substrates and filters to control emissions in automotive and industrial applications. Specialty Materials generates sales through advanced materials like Gorilla Glass, used in consumer electronics. Finally, the Life Sciences segment earns revenue by providing laboratory products and services to pharmaceutical and biotech companies. Significant partnerships with major manufacturers and continuous investment in R&D further bolster Corning's revenue streams.

Corning Financial Statement Overview

Summary

Corning shows stable financial health with moderate revenue and cash flow growth. The gross profit margin is healthy, but declining net profit margin and low ROE indicate areas for improvement. The balance sheet is sound with manageable leverage and strong cash generation.

Income Statement

Corning's revenue growth is moderate with a 3.64% increase in TTM compared to the previous year. The gross profit margin stands at a healthy 32.97% for TTM, indicating efficient production cost management. However, the net profit margin has decreased to 3.34%, reflecting potential cost pressures or inefficiencies. The EBIT margin is at 10.98%, showing reasonable operating efficiency, while EBITDA margin of 15.75% indicates a solid cash-generating ability.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.68, which is manageable and indicates moderate leverage. Return on Equity (ROE) is relatively low at 4.24% for TTM, suggesting limited profitability relative to shareholder equity. An equity ratio of 39.12% reflects a solid equity base relative to total assets, providing a cushion against liabilities.

Cash Flow

Free cash flow has grown by 10.20% in TTM, signifying improved cash generation. The operating cash flow to net income ratio of 4.39 indicates strong cash conversion from net income. The free cash flow to net income ratio stands at 2.36, reflecting effective cash management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.60B	13.12B	12.59B	14.19B	14.08B	11.30B
Gross Profit	4.48B	4.28B	3.93B	4.51B	5.06B	3.53B
EBITDA	2.34B	2.49B	2.51B	3.36B	3.77B	2.87B
Net Income	454.00M	506.00M	581.00M	1.32B	1.91B	512.00M
Balance Sheet
Total Assets	27.39B	27.73B	28.50B	29.50B	30.14B	30.77B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.77B	1.78B	1.67B	2.15B	2.67B
Total Debt	8.15B	8.09B	8.48B	7.82B	7.04B	8.00B
Total Liabilities	16.27B	16.66B	16.63B	17.22B	17.60B	17.33B
Stockholders Equity	10.72B	10.69B	11.55B	12.01B	12.33B	13.26B
Cash Flow
Free Cash Flow	1.07B	974.00M	615.00M	1.01B	1.77B	803.00M
Operating Cash Flow	1.99B	1.94B	2.00B	2.62B	3.41B	2.18B
Investing Cash Flow	-725.00M	-744.00M	-1.00B	-1.35B	-1.42B	-1.31B
Financing Cash Flow	-1.26B	-1.16B	-883.00M	-1.65B	-2.45B	-729.00M

Corning Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 51.82 is above the 20-day moving average (MA) of 50.77, above the 50-day MA of 47.61, and above the 200-day MA of 47.04, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 75.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLW.

Corning Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMN	81 Outperform	$40.12B	27.45	19.04%	1.75%	18.08%	7.28%
TEL	78 Outperform	$49.78B	36.79	11.33%	1.68%	1.23%	-58.22%
KEYS	78 Outperform	$28.25B	38.74	14.30%	―	-1.16%	-7.04%
TDY	76 Outperform	$23.88B	29.14	8.61%	―	2.98%	-5.64%
FTV	75 Outperform	$23.82B	30.77	7.70%	0.45%	0.85%	-10.01%
GLW	64 Neutral	$44.01B	98.34	4.14%	2.17%	9.77%	-26.50%
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.25%	-4.78%	-43.21%

Corning Corporate Events

Corning CEO to Present at J.P. Morgan Conference

On May 14, 2025, Wendell P. Weeks, Chairman and CEO of Corning Incorporated, will speak at the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference. He will discuss the company’s recent Springboard plan upgrade and provide updates on its Optical Communications and Solar business segments.

The most recent analyst rating on (GLW) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Corning stock, see the GLW Stock Forecast page.

Corning Announces Executive Leadership Changes April 2025

On April 30, 2025, Corning announced several executive changes, including the retirement of Eric S. Musser, the President and Chief Operating Officer, in mid-2025 after 39 years of service. Avery H. Nelson III was appointed as Executive Vice President and will become Chief Operating Officer upon Musser’s retirement. Lewis A. Steverson was appointed Vice Chairman while maintaining his roles as Executive Vice President and Chief Legal and Administrative Officer. John Z. Zhang was named Executive Vice President and Chief Corporate Development Officer, and Wendell P. Weeks will reassume the role of President, in addition to his current roles, upon Musser’s retirement. These changes are aimed at strengthening the company’s leadership and aligning with its strategic objectives.

Corning Reports Strong Q1 2025 Financial Results

Corning announced its first-quarter 2025 financial results, highlighting a 13% year-over-year increase in core sales to $3.7 billion and a 42% rise in core EPS to $0.54. The company reported strong demand for its new Gen AI products and U.S.-made solar products, contributing to a 106% growth in enterprise sales within the Optical Communications segment. Corning is accelerating its U.S. manufacturing to meet this demand and expects continued growth in the second quarter, with projected core sales of approximately $3.85 billion and core EPS growth outpacing sales.