Corning’s fourth quarter results reflected robust demand in its optical communications segment, notably driven by adoption of next-generation data center solutions. Management highlighted that double-digit sales growth was heavily influenced by the rapid uptake of new artificial intelligence-oriented optical products, as well as key customer wins. CEO Wendell Weeks cited “remarkable demand for our innovations in manufacturing capabilities,” pointing to the Meta multi-year agreement as a validation of Corning’s technology leadership in high-density optical fiber. While revenue missed Wall Street expectations, improvements in operating margin and strong execution in premium product lines were credited for the quarter’s performance.
Is now the time to buy GLW? Find out in our full research report (it’s free for active Edge members).
Corning (GLW) Q4 CY2025 Highlights:
- Revenue: $4.41 billion vs analyst estimates of $4.37 billion (13.9% year-on-year growth, 1% beat)
- Adjusted EPS: $0.72 vs analyst estimates of $0.71 (2.1% beat)
- Adjusted EBITDA: $1.22 billion vs analyst estimates of $1.22 billion (27.5% margin, in line)
- Revenue Guidance for Q1 CY2026 is $4.25 billion at the midpoint, below analyst estimates of $4.27 billion
- Adjusted EPS guidance for Q1 CY2026 is $0.68 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 15.2%, up from 10.1% in the same quarter last year
- Market Capitalization: $95.76 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Corning’s Q4 Earnings Call
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Wamsi Mohan (Bank of America) asked about the scale and inclusion of additional long-term customer agreements in the growth plan. CEO Wendell Weeks clarified that not all potential agreements are fully reflected in current forecasts, as financial impact will build over several years.
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Joshua Spector (UBS) inquired whether the Meta deal would shift customer share or expand the market. Weeks responded that similar agreements are being finalized with other major customers, suggesting overall market expansion rather than a share shift.
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Meta Marshall (Morgan Stanley) sought clarification on accounting for Meta deal sales and capital expenditure plans. CFO Edward Schlesinger explained that Meta-related sales are booked under enterprise, not carrier, and outlined plans for $1.7 billion in capital spending, primarily directed at optical capacity.
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George Notter (Wolfe Research) questioned the extent to which customer prepayments offset Corning’s capital investments. Schlesinger confirmed a mix of customer-funded and company-funded investments, with ongoing efforts to de-risk large projects through contractual mechanisms.
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Steven Fox (Fox Advisors) asked about the global mix of manufacturing and potential margin effects from optical. Weeks stated that factory location follows customer demand and Schlesinger suggested that corporate operating margins could rise above 20%, driven by strength in optical.
Catalysts in Upcoming Quarters
In coming quarters, our analysts will be closely monitoring (1) the pace and financial impact of new hyperscale data center contracts and similar agreements beyond Meta, (2) the ramp-up of U.S. manufacturing capacity for advanced optical products and associated capital allocation, and (3) margin performance as the solar business scales and capital investments increase. Execution on these fronts will be central to tracking Corning’s progress toward its upgraded SpringBoard growth targets.
Corning currently trades at $114.79, up from $109.74 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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