A Member of Pat McKeough’s Inner Circle recently asked for his advice on a leading global innovator that combines deep expertise in glass science, ceramics science, and optical physics to develop category-defining products for high-growth industries.
Pat likes the firm’s key positioning inside the global AI datacentre value chain. The specialized high-density optical fibre, connectors, and cable solutions designed by the company reduce AI installation times and power consumption, making them vital components for hyper-scale players. However, Pat notes the stock is vulnerable to a drop after its significant run-up over the past twelve months.
Corning Inc. (Symbol GLW on NYSE; www.corning.com) is a leader in material sciences and specializes in the production of glass, ceramics, and optical fibre.
The company traces its history back to 1851, with its first stock-market listing in 1945. It is headquartered in Corning, New York.
Corning’s biggest products are display glass for TVs and optical fibre for telecom networks and data centres. It also provides cover glass for smartphones, glass for cars, pharmaceutical glass, and polysilicon for solar panels.
The company earns more than 60% of its revenues outside of the U.S., including 20% from China. It has 67,200 employees worldwide and manufactures its products at 124 plants in 15 countries.
Corning mainly operates through five reportable segments:
Optical Communications (approximately 38% of sales): Provides fibre, cable, and connectivity solutions for telecommunications and AI data centers. This is the largest and fastest-growing segment.
Display Technologies (22% of sales): Manufactures glass substrates for LCD and OLED displays used in televisions and mobile devices.
Specialty Materials (14% of sales): Develops high-performance glass (like Gorilla Glass) and ceramics for consumer electronics and semiconductor manufacturing.
Automotive (11% of sales): Combines environmental technologies (catalytic converter substrates) and automotive glass solutions.
Life Sciences (6% of sales): Produces laboratory products and glass packaging for pharma companies and others.
Other Corning units are grouped as Hemlock and Emerging Growth Businesses (9% of sales). Their products include high-purity polysilicon for the solar power and electronics industries, glass tubing and vials for the pharmaceutical industry, and glass solutions that enhance vehicle exteriors and interiors for the automotive industry.
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Major contracts will power Corning’s growth
On August 7, 2025, Apple announced a $2.5 billion commitment to buy 100% of the cover glass for iPhones and Apple Watches from a new Corning facility in Harrodsburg, Kentucky. This will include glass for Apple’s foldable phone.
The deal, part of Apple’s broader $600 billion U.S. investment plan, includes the construction of the world’s largest smartphone glass production line and a new Apple-Corning Innovation Center in Kentucky.
Similarly, in January 2026, Corning announced a multiyear agreement (up to $6 billion value) with Meta to supply advanced optical fibre, cable, and connectivity solutions to speed up the construction of AI-focused data centres. As part of the deal, Corning will expand its manufacturing capacity in Hickory, North Carolina, with Meta serving as the anchor customer.
What’s more, Amazon has announced a multiyear, multibillion-dollar agreement under which Corning will supply the optical fiber, cable, and connectivity solutions that power Amazon’s expanding data centre infrastructure across the U.S.
As well, Nvidia and Corning have announced a long-term partnership in which Corning will expand its U.S.-based optical connectivity manufacturing capacity by 10 times and expand its U.S. fibre production capacity by more than 50% to meet the accelerating demand driven by AI factory buildouts.
Meanwhile, for the three months ended June 30, 2026, Corning’s revenue was $4.74 billion, up 17.0% from $4.05 billion a year earlier. Revenue rose due to significant gains in the Optical Communications and Solar segments.
Excluding one-time items, earnings were $680.0 million, or $0.78 a share. That’s up 30.0% from $523.0 million, or $0.60. Earnings rose due to enhanced profit margins and a 77% net income surge in the Optical Communications segment.
Corning’s balance sheet is sound, with cash of $2.5 billion. Its long-term debt of $7.8 billion is a low 5.4% of the company’s market cap.
Corning’s outlook is positive, especially given its partnerships with Meta, Apple, Amazon, Nvidia and other tech giants. It’s also well positioned in growth markets. For example, it keeps gaining as artificial intelligence advancements fuel demand for its optical components. The company continues to introduce new products to meet that demand and stay ahead of rivals. This includes a larger, higher density cable system capable of packing more fibre into existing space restrictions.
Still, the company’s stock price is up 155% over the last year, and the shares now trade at a high 51.2 times the $3.27 a share that Corning will likely earn in 2026. That adds risk. Meanwhile, the 0.7% yield doesn’t provide much downside cushion against a correction.
Recommendation in Pat’s Inner Circle: Corning Inc. is okay to hold.
