Corning’s third quarter results were in line with Wall Street’s expectations, but investors responded negatively, reflecting concerns about the company’s ability to deliver on ambitious growth targets. Management pointed to strong demand in its Optical Communications segment, particularly from hyperscale data center customers seeking AI-related products, as a key growth driver. CEO Wendell Weeks emphasized the “powerful, profitable growth” stemming from Corning’s Springboard plan, highlighting that sales and profit have grown significantly since its launch. However, the market remains focused on whether current momentum can be sustained amid execution challenges and supply constraints.
Is now the time to buy GLW? Find out in our full research report (it’s free for active Edge members).
Corning (GLW) Q3 CY2025 Highlights:
- Revenue: $4.27 billion vs analyst estimates of $4.11 billion (14.4% year-on-year growth, 3.9% beat)
- EPS (GAAP): $0.50 vs analyst expectations of $0.56 (12.1% miss)
- Adjusted EBITDA: $1.15 billion vs analyst estimates of $1.15 billion (26.9% margin, in line)
- Revenue Guidance for Q4 CY2025 is $4.35 billion at the midpoint, above analyst estimates of $4.13 billion
- Operating Margin: 13.8%, up from 8.1% in the same quarter last year
- Market Capitalization: $75.02 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 Q3 Earnings Call
- Joshua Spector (UBS) asked if timing effects or supply constraints contributed to optical sales trends. CFO Edward Schlesinger and CEO Wendell Weeks explained that demand remains high and quarter-to-quarter timing depends on customer schedules and available capacity, rather than any underlying demand weakness.
- Asiya Merchant (Citi) inquired about incremental operating margin potential beyond current targets, especially as solar and optical businesses ramp. Schlesinger noted ramp costs would diminish as capacity scales, potentially allowing margins to exceed the 20% target over time.
- John Ezekiel Roberts (Mizuho) questioned if excess solar inventory in the U.S. would impact Corning’s ramp. Weeks stated that, due to strong demand for U.S.-origin products, Corning’s solar business is less sensitive to downstream inventory fluctuations and remains a preferred supplier.
- Joseph Cardoso (JPMorgan, for Samik Chatterjee) asked about margin headroom in optical and solar segments. Management responded that margins should continue to improve as scale increases and as new product innovations are adopted by customers.
- George Notter (Wolfe Research) probed on optical supply constraints and recent capacity expansions. Weeks confirmed that supply is currently tight and that lead times depend on product mix, with ongoing discussions to align future capacity investments with customer needs.
Catalysts in Upcoming Quarters
As we look ahead, the StockStory team will be tracking (1) execution of additional manufacturing capacity in both optical and solar segments, (2) the pace and scale of new customer agreements—especially in AI and data center markets, and (3) margin progression as ramp costs in solar and optical are absorbed. Shifts in U.S. regulatory policy on solar imports and vehicle emissions will also be important to monitor.
Corning currently trades at $87.03, down from $89.38 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 for active Edge members).
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