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FinanceCorning Q2 beats on earnings and sales, but shares fall 14% premarket on weak Q3 guidance
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Corning reported Q2 2026 core earnings of $0.78 per share (up 30% YoY) and core sales of $4.74 billion (up 17% YoY), beating analyst expectations of $0.76 EPS and $4.63 billion in sales. Despite the beat, shares fell 14% in premarket trading due to weaker-than-expected Q3 guidance: core EPS of $0.85-$0.89 and sales of $4.9-$5.0 billion, with the midpoint of sales guidance below the $4.99 billion consensus. Optical Communications led growth with $2.07 billion in sales (up 32%), while Solar segment sales surged 90% to $438 million but posted a net loss of $7 million. Corning announced major partnerships with Amazon (multiyear, multibillion-dollar fiber deal) and NVIDIA (expanding U.S. optical connectivity manufacturing tenfold). CEO Wendell Weeks cited a 'new phase of accelerating growth' with a Springboard Plan targeting $20 billion annualized sales by end of 2026, $30 billion by 2028, and $40 billion by 2030. Other optical networking stocks also fell, including Ciena (-5.9%), Coherent (-5.7%), and Lumentum (-4.7%).
Source report
Author: Cris Tolomia Source: Quartz
Earnings Overview
Corning (GLW) reported second-quarter core earnings of $0.78 per share, up 30% year over year, and core sales of $4.74 billion, up 17%, on Tuesday. Despite the beat, shares slid 14% in premarket trading following the release.
Wall Street had expected adjusted earnings of $0.76 per share and sales of $4.63 billion, according to Barron's.
Guidance Disappoints
The disappointment centered on Corning's third-quarter outlook:
- Core EPS: $0.85 to $0.89
- Core Sales: $4.9 billion to $5.0 billion
Analysts had expected third-quarter sales of $4.99 billion and earnings of $0.85 per share, per Barron's.
Segment Performance
Optical Communications
- Net sales: $2.07 billion, up 32% year over year
- Enterprise Networks within the segment grew 65%
Solar
- Sales: $438 million, up 90% year over year
- Segment recorded a net loss of $7 million
- Corning expects Solar profitability to improve in Q3 following completion of an extended maintenance shutdown and equipment upgrade at its solar wafer facility
GAAP Results
- Net sales: $4.51 billion
- Diluted EPS: $0.64
CEO Commentary and Growth Plan
Chairman and CEO Wendell P. Weeks stated that the company is "entering a new phase of accelerating growth" and expects a sales compound annual growth rate of 19% from Q4 2026 to Q4 2030.
Corning's Springboard Plan targets:
- $20 billion annualized sales run rate by end of 2026
- $30 billion by end of 2028
- $40 billion by end of 2030
Key Partnerships
During the quarter, Corning announced agreements with:
- Amazon: A multiyear, multibillion-dollar agreement to supply optical fiber, cable, and connectivity solutions for U.S. data centers
- NVIDIA: A long-term partnership to expand U.S. optical connectivity manufacturing capacity tenfold and increase domestic fiber production capacity by more than 50%
Previous Quarter Context
Corning reported Q1 2026 core sales of $4.35 billion and core EPS of $0.70, driven by demand for fiber-optic products tied to AI data center construction. The company also announced two hyperscaler deals comparable in scale to an earlier multiyear agreement with Meta and outlined plans to extend its Springboard growth plan through 2030.
Market Impact
Other optical networking stocks fell Tuesday alongside Corning:
- Ciena: -5.9%
- Coherent: -5.7%
- Lumentum: -4.7%
Source
Yahoo FinanceWestern
Part of this Story
Corning Q2 2026 Earnings Beat Estimates but Stock Falls on Disappointing Guidance