Corning Cashes In On AI Boom With 24% Optical Revenue Surge

Corning Inc. (NYSE:GLW), a key supplier of glass used in Apple Inc.’s (NASDAQ:AAPL) iPhone and Apple Watch, reported fourth-quarter fiscal 2025 results on Wednesday.

The Corning, N.Y.-based company posted adjusted earnings of 72 cents per share, beating analyst estimates of 70 cents.

Core sales rose 14% year over year (Y/Y) to $4.41 billion, exceeding the $4.35 billion consensus.

Core EPS grew 26% Y/Y, while core operating margin expanded 390 basis points Y/Y to 20.2%.

On a GAAP basis, Corning reported $4.22 billion in revenue (+20% Y/Y) and net income of $540 million, compared to $310 million in the same quarter last year.

Operating cash flow for the quarter was $1.05 billion, and adjusted free cash flow stood at $732 million in the quarter.

Segments Performance

Optical Communications revenue rose 24% Y/Y to $1.70 billion, while Display sales fell 2% Y/Y to $955 million.

Specialty Materials revenue climbed 6% Y/Y to $544 million, while Automotive sales declined 1% Y/Y to $440 million in the quarter.

On the other hand, the Life Sciences segment declined 2% Y/Y to $246 million, and Hemlock and Emerging Growth Businesses’ revenue increased 62% Y/Y to $526 million.

Outlook

For the first quarter, Corning expects core sales of $4.200 billion-$4.300 billion, above the Street estimate of $4.234 billion, and adjusted EPS in the range of 66 to 70 cents, ahead of the 66-cent consensus.

Management upgraded its Springboard growth plan, raising long-term revenue targets from the fourth-quarter 2023 baseline.

The internal plan now calls for $11 billion in incremental annualized sales by the end of 2028, up from the original $8 billion target. For 2026, projected incremental annualized sales were lifted to $6.5 billion from $6 billion, while the company's high-confidence plan was increased to $5.75 billion from the prior $4 billion estimate.

CEO Wendell P. Weeks said, “We now have a highly profitable launch point for future growth. Excitingly, we have even stronger long-term growth ahead. Today, we are upgrading our original Springboard plan to now add $11 billion in incremental annualized sales by the end of 2028, up from our original $8-billion plan.”

Corning, Meta Announce Multiyear Data Center Deal

On Tuesday, Corning announced a $6 billion agreement with Meta Platforms (NASDAQ:META) to accelerate U.S. data center infrastructure for AI.

Corning will supply Meta with its latest optical fiber, cable, and connectivity solutions designed to meet the density and scale requirements of advanced AI data centers.

GLW Price Action: Corning shares were down 1.06% at $108.58 at the time of publication on Wednesday. The stock is approaching its 52-week high of $113.99, according to Benzinga Pro data.

Photo by T. Schneider via Shutterstock