Corning Incorporated (GLW) | Investment Case

1. Company Snapshot

1.a. Company Description

Corning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide.The company's Display Technologies segment offers glass substrates for liquid crystal displays and organic light-emitting diodes used in televisions, notebook computers, desktop monitors, tablets, and handheld devices.Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, including cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories.

This segment also offers its products to businesses, governments, and individuals.Its Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics, crystals, precision metrology instruments, software; as well as ultra-thin and ultra-flat glass wafers, substrates, tinted sunglasses, and radiation shielding products.This segment serves various industries, including mobile consumer electronics, semiconductor equipment optics and consumables; aerospace and defense optics; radiation shielding products, sunglasses, and telecommunications components.

The company's Environmental Technologies segment offers ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications.The company's Life Sciences segment offers laboratory products comprising consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware and equipment under the Corning, Falcon, Pyrex, and Axygen brands.The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989.

Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.

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1.b. Last Insights on GLW

Corning Incorporated's recent performance was driven by robust execution of its Springboard plan, strong demand in Optical Communications, and expanding partnerships with major tech companies like Apple, Samsung, and Broadcom. The company's Q3 earnings beat expectations, fueled by a 33% rise in Optical Communications, driven by Gen-AI demand and strong glass sales. Additionally, its Specialty Materials segment showed strength, with premium glass adoption climbing across top smartphone makers. Corning's growth momentum is also fueled by its solid traction in optical communication. UBS Securities upgraded the stock to "buy" from "neutral", citing AI potential.

1.c. Company Highlights

Last Price	85.97
Change Percentage	0.61%
Open	85.49
Previous Close	85.45
Market Cap ( Millions)	73707
Volume	4174471
Year High	92.57
Year Low	37.31
M A 50	84.64
M A 200	61.67

FCF Yield	1.58%
Dividend Yield	1.30%
ROE	12.40%
Debt / Equity	79.62%
Net Debt / EBIDTA	218.21%
Price To Book	6.41
Price Earnings Ratio	54.12
Price To FCF	63.43
Price To sales	4.94
EV / EBITDA	23.52

2. Corning's Strong Q3 2025 Earnings: Growth and Margin Expansion

Corning Inc.'s third-quarter 2025 earnings report was impressive, with sales growing 14% year-over-year to $4.27 billion, and EPS increasing 24% to $0.67, beating analyst estimates of $0.665. The company's operating margin expanded 130 basis points to 19.6%, and ROIC increased 160 basis points to 13.4%, with free cash flow of $535 million. The strong financial performance was driven by the company's diversified portfolio, with significant growth in its Optical Communications segment, where sales grew 33% year-over-year to $1.65 billion.

Publication Date: Oct -29

                                    📋 Highlights
                                    Strong Sales & Profit Growth:
                                                Q3 2025 sales rose 14% to $4.27B, EPS up 24% to $0.67, with operating margin expanding 130 bps to 19.6%.
Springboard Plan Success:
                                                Since 2023, sales grew 31%, margins expanded 330 bps, and EPS surged 72%, adding $4B to annualized sales run rate.
Gen AI-Driven Optical Growth:
                                                Optical Communications sales jumped 33% to $1.65B, with enterprise business up 58% and $1B Gen AI opportunity target by decade’s end.
Solar Expansion:
                                                Plans to triple solar run rate by 2027, adding $1.6B annualized revenue, with a $2.5B solar business goal by 2028.
Free Cash Flow & Capex:
                                                Generated $535M free cash flow, plans $1.3B in 2025 capex, and $50B shareholder value creation via buybacks since 2015.

                                

Segment Performance

The company's enterprise business grew 58% year-over-year, driven by the adoption of Gen AI products. The Automotive segment reported sales of $454 million, up 6% year-over-year, driven by a stronger light-duty vehicle market in China. The Life Sciences segment reported sales consistent with the prior year, while net income grew 7%. The Hemlock and Emerging Growth Businesses segment sales were up 46% year-over-year, primarily driven by additional polysilicon capacity coming online and the ramp of solar module operations.

Growth Opportunities

Corning's growth is driven by opportunities in Gen AI, including the scale-out and scale-up of networks. The company expects its Gen AI opportunity to continue to accelerate, with a potential $1 billion business by the end of the decade in its carrier business. Corning has also strengthened its relationship with Microsoft to produce hollow core fiber, which could become a significant opportunity. In the solar business, Corning has built the largest solar ingot and wafer facility in the United States and expects to triple its solar run rate by 2027, adding $1.6 billion of new annualized revenue.

Valuation and Outlook

Corning's valuation metrics indicate a premium, with a P/E Ratio of 54.41 and P/S Ratio of 4.96. The company's ROIC is 13.4%, and ROE is expected to be around 12.4%. Analysts estimate next year's revenue growth at 9.7%. With a strong track record of delivering growth and expanding margins, Corning is well-positioned to continue its momentum. The company's focus on investing in organic growth opportunities and returning excess cash to shareholders through share buybacks is expected to drive long-term value creation.

Guidance and Future Prospects

Corning expects to deliver sales of approximately $4.35 billion in the fourth quarter, representing year-over-year growth of 12%. The company has hedged its exposure for 2025 and 2026 and has a yen core rate of JPY 120 to the dollar. With a strong outlook and a commitment to innovation, Corning is poised to continue its growth trajectory, driven by its diversified portfolio and emerging opportunities in Gen AI and solar.

3. NewsRoom

Corning Stock Rises 75.9% YTD: How to Play the Stock?

Dec -04

Source: zacks.com

Corning Incorporated (NYSE:GLW) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Dec -03

Source: defenseworld.net

Potentially 12%-15% Consistent Income: Monthly Options Series (December 2025)

Nov -30

Source: seekingalpha.com

JPMorgan Has 15 Ideas for 'Bargain Hunting' Tech Stock Investors

Nov -22

Source: investopedia.com

Bahl & Gaynor Inc. Has $130.15 Million Position in Corning Incorporated $GLW

Nov -22

Source: defenseworld.net

5 Stocks With High ROE to Profit as Markets Perform Erratically

Nov -21

Source: zacks.com

GLW vs. ANET: Which AI Infrastructure Stock Offers More Upside?

Nov -19

Source: zacks.com

Corning Stock Rises 76.7% in a Year: Should You Invest Now?

Nov -17

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.14%)

6. Segments

Optical Communications

Expected Growth: 6.5%

Corning's Optical Communications growth (6.5%) is driven by increasing demand for high-speed internet, 5G network deployments, and data center expansions. The company's innovative fiber optic solutions, such as its flagship product, Gorilla Glass, and its advanced optical fiber designs, position it well to capitalize on these trends, driving growth in this segment.

Display

Expected Growth: 5.8%

Corning Incorporated's 5.8% growth is driven by increasing demand for display glass, strong sales in the LCD segment, and expanding applications in automotive and industrial markets. The company's innovation and capacity expansion have enabled it to meet growing demand, while a stable pricing environment has also contributed to the growth.

Environmental Technologies

Expected Growth: 7.5%

Corning's Environmental Technologies segment growth of 7.5% is driven by increasing demand for emissions control and pollution reduction solutions. Government regulations and consumer awareness fuel the need for ceramic substrates, filters, and other technologies that reduce emissions and waste. Corning's innovative products and strong market position enable the company to capitalize on these trends, driving growth and expansion in this segment.

Specialty Materials

Expected Growth: 6.0%

Corning's Specialty Materials segment growth of 6.0% is driven by increasing demand for Gorilla Glass in smartphones and tablets, as well as growth in optical fiber and cable for 5G and data center expansions. The segment's strong performance is also attributed to the company's innovative products and strategic partnerships.

Hemlock and Emerging Growth Businesses

Expected Growth: 8.0%

Corning's Hemlock and Emerging Growth Businesses growth of 8.0% is driven by increasing demand for emerging technologies, including 5G, cloud computing, and renewable energy. The segment's growth is also fueled by Corning's innovative products, such as glass substrates for semiconductors and advanced materials for clean energy applications, which are experiencing high adoption rates.

Life Sciences

Expected Growth: 6.2%

Corning's Life Sciences segment growth of 6.2% is driven by increasing demand for its advanced glass and ceramic products, particularly in biopharmaceutical and medical device applications. The company's innovative solutions, such as its Valor Glass and Celluforce products, are gaining traction, contributing to revenue growth. Expansion into emerging markets and strategic acquisitions are also supporting the segment's growth.

Unallocated Impairment of Upfront Fees to a Customer

Expected Growth: 0.0%

The 0.0% growth in Unallocated Impairment of Upfront Fees to a Customer from Corning Incorporated suggests stability. Fundamental drivers include consistent revenue streams, absence of significant asset write-downs, and potentially, effective management of upfront fees. This stability implies a predictable financial performance, aligning with Corning's strategic planning and execution.

Unallocated Impact of Constant Currency Reporting

Expected Growth: 0.0%

The unallocated impact of constant currency reporting from Corning Incorporated shows 0.0% growth, indicating that foreign exchange fluctuations had a neutral effect on the company's financials. This suggests that the company's underlying performance was not impacted by currency translation, and that operational growth drivers such as sales volume, pricing, and cost management were the primary influencers.

7. Detailed Products

Gorilla Glass

A thin, lightweight, and damage-resistant glass used as a cover glass for consumer electronics, such as smartphones, tablets, and laptops.

Optical Communications

A range of products and solutions for the telecommunications industry, including optical fibers, cables, and connectivity solutions.

Life Sciences

A portfolio of laboratory equipment, consumables, and bioprocess vessels used in scientific research, drug discovery, and bioproduction.

Display Technologies

Specialized glass and ceramic substrates used in the production of flat panel displays, such as LCD TVs and monitors.

Automotive

Emissions control products, including catalytic converters and filters, used in the automotive industry.

Pharmaceutical Tubing

Specialized tubing and connectors used in the pharmaceutical industry for fluid handling and transfer.

8. Corning Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Corning Incorporated has a diverse product portfolio, which reduces the threat of substitutes. However, the company's focus on innovation and R&D helps to stay ahead of potential substitutes.

Bargaining Power Of Customers

Corning Incorporated has a diverse customer base, which reduces the bargaining power of individual customers. The company's strong brand reputation and high-quality products also contribute to its bargaining power.

Bargaining Power Of Suppliers

Corning Incorporated has a moderate level of dependence on its suppliers, particularly for raw materials. However, the company's strong relationships with suppliers and its diversified supply chain help to mitigate this risk.

Threat Of New Entrants

Corning Incorporated operates in industries with high barriers to entry, such as the production of specialized glass and ceramics. The company's strong brand reputation, patented technologies, and high R&D investments also make it difficult for new entrants to compete.

Intensity Of Rivalry

Corning Incorporated operates in highly competitive industries, such as the display glass market and the automotive market. The company faces intense competition from established players, which drives innovation and pricing pressures.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	42.35%
Debt Cost	3.95%
Equity Weight	57.65%
Equity Cost	9.29%
WACC	7.03%
Leverage	73.45%

11. Quality Control: Corning Incorporated passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Amphenol

A-Score: 5.5/10

Value: 0.7

Growth: 7.4

Quality: 7.2

Yield: 1.0

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

QUALCOMM

A-Score: 5.3/10

Value: 3.4

Growth: 6.2

Quality: 8.1

Yield: 4.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

NetApp

A-Score: 5.2/10

Value: 3.4

Growth: 5.8

Quality: 7.2

Yield: 4.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

Corning

A-Score: 4.9/10

Value: 0.8

Growth: 2.6

Quality: 5.3

Yield: 4.0

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

Fortive

A-Score: 4.4/10

Value: 3.4

Growth: 4.6

Quality: 6.5

Yield: 0.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

Keysight Technologies

A-Score: 4.3/10

Value: 1.2

Growth: 4.0

Quality: 7.3

Yield: 0.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.17%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.03%

Corning Incorporated - US2193501051

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GLW

1.c. Company Highlights

Higher Yield

Less Volatile

Fairly Valued

Earnings Beats

Revenues Miss

Expensive

Strong Momentum

2. Corning's Strong Q3 2025 Earnings: Growth and Margin Expansion

Segment Performance

Growth Opportunities

Valuation and Outlook

Guidance and Future Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.14%)

6. Segments

Optical Communications

Expected Growth: 6.5%

Display

Expected Growth: 5.8%

Environmental Technologies

Expected Growth: 7.5%

Specialty Materials

Expected Growth: 6.0%

Hemlock and Emerging Growth Businesses

Expected Growth: 8.0%

Life Sciences

Expected Growth: 6.2%

Unallocated Impairment of Upfront Fees to a Customer

Expected Growth: 0.0%

Unallocated Impact of Constant Currency Reporting

Expected Growth: 0.0%

7. Detailed Products

Gorilla Glass

Optical Communications

Life Sciences

Display Technologies

Automotive

Pharmaceutical Tubing

8. Corning Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Corning Incorporated passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

85.97$

Current Price

85.97$

Potential

12.e Scoring ^Insights

12.f DCF ^BETA