Corning Inc Sell off overdone; Reiterate Buy Rating

Research evidence excerpt

Corning Inc Sell off overdone; Reiterate Buy Rating

From To % ch Cons.

2Q adj EPS of $0.78 was ~3% above cons and above the high end of the guide

Q1 0.70 0.70 0 0.70

range. Earnings beat consensus expectations in all segments ex Solar, which had

Q2 0.74 0.78 5 0.76

known start-up cost impacts. 2Q sales growth of +17% Y/Y is ~2% above

Q3E 0.90 0.88 -2 0.85

consensus, and includes a slight beat in Optical as well. Optical margins were Q4E 0.91 0.90 -1 0.88

similar Q/Q vs a step down modeled in consensus, which we think is positive and 12/26E 3.25 3.26 1 3.20

shows strong incremental margins even as GLW ramps capacity to meet demand. 12/27E 4.60 4.45 -3 4.26

12/28E 7.60 6.95 -9 5.76

3Q sales outlook reflects ~16% Y/Y growth, though was ~1% below cons. ($5.0B)

and EPS guidance of $0.87 at the midpt is 2% above consensus ($0.85). Joshua Spector, CFA

Analyst

Estimate/Fiber model updates joshua.spector@ubs.com

Our sales estimates for 2026 are reduced -1%, though we assume on stronger +1-212-713 6188

margin performance, EPS increases ~1%. Looking out to 2027/28 we adjust down James Cannon

our sales estimates 4%/12%, which results in EPS 3%/9% lower vs our prior Associate Analyst

model. While the quarter didn't drive our changes, we revamped our fiber model james-p.cannon@ubs.com

to be more conservative on scale up and photonics growth. GLW indicated there is +1-212-713 4057

no change to their visibility or timeline, however, we thought being more Lucas Beaumont

conservative could be prudent. We assume the $/fiber connection is now ~1/2 to Analyst

~1/4 for scale up vs scale out to account for shorter fiber distances offset by higher lucas.beaumont@ubs.com

content attach rate. We model incremental pre-tax margins in optical in the 40- +1-212-713 4809