Corning Incorporated (NYSE:GLW) saw its shares rise 2.45% in pre-market trading Tuesday after reporting better-than-expected second-quarter results fueled by high demand for products linked to artificial intelligence.
The materials science firm posted core earnings per share of $0.60 for the quarter, surpassing the analyst forecast of $0.57. Revenue reached $4.05 billion, beating estimates of $3.86 billion. Core sales rose 12% year over year, with operating margins expanding 160 basis points to 19%, while core EPS grew 28% compared to the same quarter last year.
Corning’s Optical Communications segment was a standout performer, with sales jumping 41% year over year to $1.57 billion. Within that, Enterprise sales surged 81%, driven by strong demand for new-generation AI products. Adjusted free cash flow also saw a 28% increase year over year, reaching $451 million.
“We delivered an outstanding second quarter, with core sales up 12% year over year to $4.05 billion and core EPS growing more than double that rate to $0.60,” said Wendell P. Weeks, chairman and chief executive officer. “Overall, key secular trends and our ’More Corning’ content strategy drove demand for our capabilities.”
Looking ahead, Corning anticipates sustained momentum in Q3 with core sales projected at $4.2 billion and core EPS between $0.63 and $0.67, representing solid double-digit growth year over year. The guidance incorporates expected impacts of $0.01 to $0.02 from current tariffs, along with $0.02 to $0.03 in temporarily higher costs associated with ramping up production for new AI and U.S.-manufactured solar products.
Executive Vice President and CFO Ed Schlesinger emphasized the improved profitability: “Year over year, core sales grew 12% while core operating margin expanded 160 basis points to 19%, core EPS grew 28%, and core ROIC grew 210 basis points to 13.1%.”
Corning Incorporated stock price
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