Corning Posts Core Sales of $5.081 Billion, Sees 19% Fourth-Quarter Growth
Key Facts
Corning reported third-quarter 2026 results on October 27, saying performance exceeded its previous guidance, with core sales of $5.081 billion and core earnings per share of $0.91. Core sales grew 19% year over year, while core earnings per share rose 36%. On a GAAP basis, the company also posted sales of $4.86 billion, up 18%, and earnings per share of $0.78, up 56%. The announcement followed management's forecast of core sales between $4.9 billion and $5 billion and earnings per share between $0.85 and $0.89 for the quarter. Chief Executive Wendell Weeks said sales of generative AI products doubled year over year during the quarter, outpacing growth in GPU units.
Optical communications stood out as the largest reported growth driver, with sales up 44% to $2.38 billion. Enterprise networks sales rose 84%, while sales of generative AI products grew more than 100% year over year. The company linked the performance of these products to their adoption in optical communications, and Weeks said their sales growth outpaced growth in GPU units. In the second quarter, core sales had risen 17% to $4.74 billion, and core earnings per share had increased 30% to $0.78. The comparison shows an acceleration in core sales and earnings growth in the third quarter from the previous period.
Non-GAAP core margins improved alongside sales growth. Core gross margin widened 150 basis points year over year to 40.5%, while core operating margin rose 310 basis points to 22.7%. The figures place operating margins among the performance indicators the company highlighted alongside revenue and earnings-per-share growth. Adjusted free cash flow totaled $661 million during the quarter. Capital expenditures were $545 million, as the company invested to meet demand.
The company issued fourth-quarter guidance calling for core sales growth of about 19% year over year, to a range of $5.2 billion to $5.3 billion. It also expects core earnings-per-share growth of about 36%, to a range of $0.96 to $1.00. The guidance follows the company exceeding the sales and earnings-per-share ranges management had set for the third quarter. The stock rose 3.2% in premarket trading on October 27, according to Investing.com, after the results and a fourth-quarter earnings forecast above Wall Street estimates. In closing data, the share price rose from $126.30 on October 27 to $131.20 on October 28; that move followed the announcement but does not by itself establish the reason for the price change.
Corning said it signed four multibillion-dollar, long-term agreements with customers during the third quarter, including agreements with Verizon and AT&T. The agreements reflect long-term contracts, while the company linked growth in generative AI products to demand for optical communications and enterprise networks products. On investment, the company spent more than half a billion dollars on capital expenditures during the quarter, and adjusted free cash flow totaled $661 million. Adjusted free cash flow also reached $2.27 billion in the first nine months of 2026. The Springboard plan targets raising the annualized sales rate from $20 billion to $40 billion by the end of 2030.
The solar business recorded year-over-year sales growth of 37% as production continued to increase, but the company said the pace of production ramp-up was slower than expected. According to Investing.com, the segment posted a net loss of $7 million in the third quarter, compared with net income of $30 million a year earlier. The divergence between sales growth and the net result highlights differing performance across the company's businesses during the period. Management's announced near-term guidance focused on the fourth quarter, with specific ranges for core sales and earnings per share. The plan to double the annualized sales rate to $40 billion, meanwhile, extends through the end of 2030.