A month has gone by since the last earnings report for Corning (GLW). Shares have lost about 7.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Corning due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Corning Q3 Earnings Top Estimates on Strength in Optical Communication
Corning Incorporated reported impressive third-quarter 2025 results, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. The advanced glass substrates producer witnessed revenue expansion year over year, driven by healthy sales across multiple end markets. The growing adoption of its advanced products for Gen-AI (generative artificial intelligence) applications is a tailwind. Its U.S.-made solar products are also gaining solid market traction.
Net Income of GLW
On a GAAP basis, the company reported a net income of $430 million or 50 cents per share against a loss of $117 million or 14 cents in the year-ago quarter. Solid top-line growth led to higher net income.
Core earnings for the reported quarter were $585 million or 67 cents per share, up from $465 million or 54 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
GLW’s Revenues
Net sales, on a GAAP basis, were $4.1 billion, up from $3.39 billion reported in the year-ago quarter. Solid traction in mobile consumer electronics, premium smartphone verticals and Optical Communications boosted net sales. Core sales were up 14% to $4.27 billion. The top line beat the consensus estimate of $4.21 billion.
GLW’s Segment Results
Optical Communications generated $1.65 billion in revenues, up 33% year over year, backed by strong demand for Gen AI products in the Enterprise Network Business. The top line beat our estimate of $1.61 billion. Net income from this segment improved to $295 million, up 69% year over year.
Display Technologies registered $939 million in revenues, down 7% year over year. Net sales missed our revenue estimate of $1.01 billion. The segment’s net income was $250 million, down 12% year over year.
Net sales from Specialty Materials were $621 million, up 13% year over year, as demand for premium glass for mobile devices remained strong. The top line beat our estimate of $598 million. Net income for the segment was $113 million, up from $72 million a year ago.
The Automotive business contributed $454 million in net sales, up 6% year over year. The segment is created by separating the Automotive Glass Solutions business from Hemlock and the Emerging Growth Business and converging it with the Environmental Technologies segment. Net income was $68 million, up 33% year over year.
Revenues from the Life Sciences segment were $242 million compared with the year-earlier quarter’s figure of $244 million. Segment net income was $16 million, up 7% year over year.
Hemlock and Emerging Growth Businesses reported 46% growth in net sales year over year to $364 million. The segment reported a net loss of $1 million against a net income of $12 million in the year-ago quarter.
Other Details of GLW's Q3 Results
Quarterly gross profit increased to $1.52 billion from $1.13 billion, with respective margins of 37.1% and 33.5%. Operating income was $589 million, up from $302 million in the prior-year quarter. Core gross margin was 39%, compared to 39.5% in the year-ago quarter.
GLW’s Cash Flow & Liquidity
During the September quarter, Corning generated $784 million of net cash from operations compared with a cash flow of $699 million in the year-earlier quarter. As of Sept. 30, 2025, the company had $1.64 billion in cash and cash equivalents with $7.4 billion of long-term debt.
GLW’s Q4 Outlook
For the fourth quarter of 2025, core sales are estimated at $4.35 billion. Core EPS is expected to be in the range of 68-72 cents.
Core earnings for the reported quarter were $585 million or 67 cents per share, up from $465 million or 54 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 6.51% due to these changes.
VGM Scores
At this time, Corning has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Corning has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Corning Incorporated (GLW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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