GLW changes

Pick any two versions below to diff them.

FromTo

View the full Oct 29, 2026 version

Price: $131.20
Discount category: Below intrinsic value
Next earnings: 2027-01-27
Next earnings is estimate: Yes
Company name: Corning
Sector: Specialty glass & optical fiber
About: Corning makes specialty glass, ceramics and optical fiber. Optical Communications sells fiber, cable and connectivity to telecom carriers and to cloud and AI data centers. Glass Innovations sells glass for displays and for phones and other devices, such as Gorilla Glass. Automotive sells glass and ceramic parts for cars. Solar makes polysilicon and solar wafers in Michigan through Hemlock Semiconductor, a company that Corning owns in majority. In Q3 2026, net sales were $2.38 billion for Optical Communications, $1.51 billion for Glass Innovations, $470 million for Automotive, $436 million for Solar and $290 million for Life Sciences and other new businesses. Core sales were $16.41 billion in 2025.
Thesis: The market doubts that Corning can reach the large growth targets of its Springboard plan, and it sees risk in the cost of the plan. Corning wants to grow its annualized sales run rate to $20 billion by the end of 2026, $30 billion by the end of 2028 and $40 billion by the end of 2030. Optical sales for AI data centers are the main driver: Optical Communications sales grew 44% in Q3 2026. But Corning must build new plants, and capital spending was $1.30 billion in the first nine months of 2026. The Solar business still loses money as production ramps up more slowly than planned. Glass Innovations sales fell 3% because high memory prices hurt sales of TVs, notebooks and phones. Corning also set up a program to sell up to $2 billion of new shares. For the gap to close, three things must be true. Optical sales must keep growing fast under the long-term agreements with Meta, NVIDIA, Amazon, Verizon, AT&T and others. Solar must become profitable. Core EPS must grow faster than sales with little new share issuance. The Q4 2026 report, expected in late January 2027, shows whether the run rate reached $20 billion. If these checks pass, the gap can close slowly through 2028, when the $30 billion target falls due.
Risks: The Springboard plan needs large investments in new plants. Capital spending was $1.30 billion in the first nine months of 2026. If AI data center spending slows, the new capacity can earn less than planned. A few large cloud and AI companies give much of the growth in Optical Communications. If one of them spends less, growth can slow quickly. Solar lost $7 million in Q3 2026, and its production ramp is slower than planned. Its prices depend on U.S. trade measures, such as the Section 232 action in Q3 2026, which can change. Corning can sell up to $2 billion of new shares through its at-the-market program, and NVIDIA holds warrants for up to 18 million shares. New shares lower the value of each existing share. Glass Innovations sales fell 3% in Q3 2026 because high memory prices hurt sales of TVs, notebooks and phones.
Balance sheet: Cash: $2.5B Debt: $8.2B Net debt: $5.7B Interest cover: 8.0× Undrawn credit line: $1.5B Debt due within 12 months: $933M Corning funds itself with long-term notes and debentures. At September 30, 2026, long-term debt was $7.27 billion, and current debt and short-term borrowings were $933 million. Cash and cash equivalents were $2.54 billion. Interest cover is operating income divided by interest expense for the first nine months of 2026. The $1.5 billion revolving credit facility runs to 2030 and had no borrowings. Contract liabilities, mostly customer deposits under long-term supply agreements, were $2.7 billion. Customers use these deposits to secure products and share the cost of new capacity. Adjusted free cash flow was $2.27 billion in the first nine months of 2026, after capital spending of $1.30 billion, and dividends were $757 million. Corning set up a program on September 11, 2026 to sell up to $2 billion of new shares, and it sold none by September 30, 2026. As of 2026-09-30.
Checkpoints: Jan 27, 2027 (estimate): Q4 2026 results: $20 billion run rate. Pending. Watch: Core sales of $5.2 billion to $5.3 billion, core EPS of $0.96 to $1.00 and an annualized sales run rate of $20 billion pass; results below guidance or a missed run rate fail. 2028: Springboard: $30 billion run rate by the end of 2028. Pending. Watch: Growth on the path to a $30 billion annualized sales run rate with a profitable Solar business passes; slower Optical growth or continued Solar losses fail.
Recent events: 2026-10-27: Corning reported Q3 2026 results. Core sales grew 19% to $5.08 billion, and core EPS grew 36% to $0.91. GAAP sales were $4.86 billion and GAAP EPS was $0.78. Optical Communications sales grew 44% to $2.38 billion, and Solar sales grew 37%. Corning signed four long-term customer agreements worth billions of dollars each, including with Verizon and AT&T. For Q4 2026, it guided core sales of $5.2 billion to $5.3 billion and core EPS of $0.96 to $1.00. 2026-09-11: Corning set up an at-the-market program to sell up to $2 billion of new shares from time to time. It sold no shares under the program in Q3 2026. 2026-07-28: Corning reported Q2 2026 results. Core sales grew 17% to $4.74 billion, and core EPS grew 30% to $0.78. Corning said that Amazon agreed to buy optical fiber, cable and connectivity for its U.S. data centers under a multiyear agreement worth billions of dollars. 2026-05-06: Corning and NVIDIA announced a multiyear partnership. Corning will raise its U.S. optical connectivity capacity ten times and build three new plants in North Carolina and Texas. NVIDIA paid $500 million for warrants to buy up to 15 million Corning shares at $180 and 3 million shares at almost no cost. At an investor event the same day, Corning extended its Springboard plan to a $40 billion annualized sales run rate by the end of 2030. 2026-04-28: Corning reported Q1 2026 results. Core sales grew 18% to $4.35 billion, and core EPS grew 30% to $0.70. Two more hyperscale customers signed large long-term agreements with Corning. 2026-01-28: Corning reported Q4 2025 results. Core sales for 2025 grew 13% to $16.41 billion, and core EPS grew 29% to $2.52. 2026-01-26: Corning and Meta announced a multiyear agreement worth up to $6 billion. Corning will supply optical fiber, cable and connectivity for Meta's U.S. data centers, and Meta is the anchor customer of a new cable plant in Hickory, North Carolina.