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31 Jul 2025
Stock jumped ~10% on sharp rise in optical communications sales and strong outlook.
Diverse optics and materials company Corning Inc. has this week (July 29th) announced its second-quarter (Q2) 2025 results, which it described as “outstanding – based on record core sales”, and the firm also provided a positive outlook for the third-quarter of 2025.
The company exceeded its Q2 guidance, achieving strong sales growth. Year on year (YoY) core sales grew 12%, its operating margin expanded 160 basis points, earnings per share (EPS) grew 28%, and adjusted free cash flow grew 28%. Notable were Corning’s Optical Communications’ Enterprise sales, which grew 81% YoY, driven by what the company described as “continued strong demand for new Gen AI products”.
For the next (third) quarter, Corning’s management stated that it expects continued strong performance on its Springboard plan, with double-digit YoY core sales growth to $4.2 billion and profit again growing faster than sales, with core EPS in a range of $0.63 to $0.67/share.
Wendell P. Weeks, chairman and chief executive officer, said, “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. Overall, key secular trends and our ‘More Corning’ content strategy drove demand for our capabilities, and we continued to capture the powerful profitable growth outlined in our recently upgraded Springboard plan.”
Weeks continued, “Looking ahead, we expect our strong Springboard performance to continue. We’re seeing remarkable customer response to both our new Gen AI and U.S.-made solar products. And we’re driving more Corning content into our Mobile Consumer Electronics, Display, Automotive, and Optical Communications platforms.
“We also expect an additional growth driver to emerge in the coming months, as new and existing customers seek to leverage our large U.S. advanced manufacturing footprint. In total, we are positioned to deliver durable growth that will serve us well through 2026 and beyond.”
Ed Schlesinger, executive vice president and chief financial officer, said, “Our excellent second-quarter results exceeded guidance, and we again demonstrated our ability to significantly enhance our return profile as we execute Springboard.
“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%. Additionally, adjusted free cash flow grew 28% year over year to $451 million.”
Schlesinger added, “For the third quarter, we expect continued strong performance on our Springboard plan and double-digit sales and earnings growth year over year, with core sales of $4.2 billion and core EPS in a range of $0.63 to $0.67. Our 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 cost as we ramp to meet increased demand for our new Gen AI and U.S.-made solar products.”Third-quarter 2025 outlook
The company’s financial report stated: “In the third quarter, management expects continued strong performance on its Springboard plan and double-digit sales and earnings growth year over year, with core sales of $4.2 billion and profit again growing faster than sales, with core EPS in a range of $0.63 to $0.67.
Third-quarter 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 cost as production ramps to meet increased demand for new Gen AI and U.S.-made solar products.”
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