Corning Continues to Expand Its Promising Growth Segments

A Member of Pat McKeough’s Inner Circle recently asked for his advice on Corning Inc., a global materials science and advanced manufacturing company specializing in optical communications infrastructure, display glass technologies, automotive emission control substrates, specialty materials for consumer electronics, and solar manufacturing components.

Pat likes the major growth opportunity positioned at the convergence of the AI infrastructure buildout and renewable energy manufacturing renaissance. The firm’s Springboard plan is executing with exceptional precision and the fortress balance sheet is a big plus.

However, Pat notes the company’s stock price has soared, and the stock is now expensive.

CORNING INC. (Symbol GLW on New York) is a leader in materials science, specializing in the production of glass, ceramics, and optical fibre. The company has over 52,000 employees worldwide and manufactures products at 124 plants in 15 countries.

Corning operates in five segments: Optical Communications (39% of sales), Display Technologies (22%), Specialty Materials (13%), Automotive (11%), and Life Sciences (6% of sales). Other businesses that don’t meet the threshold for separate reporting are grouped as Hemlock and Emerging Growth Businesses (9% of sales).

Corning first implemented its “Springboard” plan in the fourth quarter of 2023. The goal was to increase annual sales by $3 billion and achieve an operating margin of 20% or higher by 2026. In March 2025, the company upgraded its goal for increased annual sales to $4 billion. Internally, Corning expects to increase annual sales by $6 billion for 2026.

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On August 7, 2025, Apple (symbol AAPL on Nasdaq) 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 that it plans to launch in 2026.

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.

Corning is well-positioned to keep reporting higher sales and profits

In the three months ended September 30, 2025, Corning’s revenue increased by 20.9%, to $4.10 billion from $3.39 billion a year earlier. The increase was driven by a 41% increase in Optical Communications revenue, to $1.57 billion from $1.11 billion.

Excluding one-time items, Corning earned $585 million, or $0.67 a share, in the latest quarter. That was up 25.8% from $465 million, or $0.54 a share. Profits were higher due to the increased sales as well as lower costs.

Corning’s balance sheet is sound, with cash of $1.65 billion. Its long-term debt of $7.41 billion is a low 9.2% of the company’s market cap.

Corning’s outlook is positive. It’s well positioned in several growth markets, auto production, television sales, cellphone glass, telecom infrastructure, and life science products.

However, the company’s stock price has jumped over 103% since the start of 2025 and the shares now trade at a high 30.8 times the $3.08 a share that Corning will likely earn in 2026. The shares yield 1.2%.

OUR RECOMMENDATION: Corning Inc. is okay to hold.

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