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NEW YORK - On Tuesday, Corning Incorporated (NYSE:GLW) reported second-quarter earnings that exceeded analyst expectations, driven by robust demand for its products used in artificial intelligence applications.
The materials science company’s shares rose 2.45% in pre-market trading after the earnings release.
The company reported second-quarter core earnings per share of $0.60, beating the analyst estimate of $0.57, while revenue came in at $4.05 billion, surpassing the consensus estimate of $3.86 billion. Core sales grew 12% YoY, with core operating margin expanding 160 basis points to 19%, and core EPS growing 28% compared to the same period last year.
Particularly strong was Corning’s Optical Communications segment, which saw sales surge 41% YoY to $1.57 billion, with Enterprise sales specifically growing 81% on continued strong demand for new Gen AI products. The company’s adjusted free cash flow grew 28% YoY to $451 million.
"We delivered an outstanding second quarter, with core sales up 12% year over year to $4.05 billion and core EPS growing more than double that rate to $0.60," said Wendell P. Weeks, chairman and chief executive officer. "Overall, key secular trends and our ’More Corning’ content strategy drove demand for our capabilities."
For the third quarter, Corning expects continued strong performance with core sales of $4.2 billion and core EPS in the range of $0.63 to $0.67, representing double-digit growth compared to the previous year. The company noted its guidance factors in about $0.01 to $0.02 for the impact of currently enacted tariffs, along with $0.02 to $0.03 of temporarily higher costs as it ramps production to meet increased demand for new Gen AI and U.S.-made solar products.
Ed Schlesinger, executive vice president and chief financial officer, highlighted the company’s improved profitability: "Year over year, core sales grew 12% while core operating margin expanded 160 basis points to 19%, core EPS grew 28%, and core ROIC grew 210 basis points to 13.1%."
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