Fiber EPS Read-Throughs Highlight GLW’s Capacity Tightness

Research evidence excerpt

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M

Idea

August 11, 2026 11:59 AM GMT

Telecom & Networking Equipment | North America

Morgan Stanley & Co. LLC

Meta A Marshall

Equity Analyst

Fiber EPS Read-Throughs

Highlight GLW’s Capacity

Tightness

Antonio Jaramillo

Research Associate

Telecom & Networking Equipment

North America

Industry View

In-Line

Fiber peer results reinforce our view that GLW’s hyperscaler

commitments are absorbing available capacity, supporting

strong volume visibility but limiting near-term pricing upside

versus peers. Incremental capacity should provide greater

operating leverage as it comes online.

Key Takeaways

Peer earnings reinforce tight fiber supply, with GLW’s hyperscaler commitments

appearing to absorb a meaningful share of available capacity

GLW’s limited pricing commentary looks more reflective of capacity committed

under LTAs than weaker demand, with capex rising to support hyperscaler growth

Fujikura is monetizing available supply more directly through price, with shorter

lead times supporting like-for-like increases of ~25% in some instances

CommScope (APH) retains adequate supply to support growth, while stronger IT

Datacom traction is driving higher revenue and earnings expectations

NVDA-backed long-haul fiber build extends the AI fiber opportunity, with 6 new /

10 overbuild AI routes (15mm fiber miles vs. 58mm for LUMN build-outs)

Fiber peer results strengthen our view that GLW’s current constraint is capacity,

not demand. Large hyperscaler LTAs appear to be absorbing a meaningful share of

available supply and providing the visibility needed to support the company’s higher

capex plan, while peer commentary reinforces that interpretation. Fujikura is

monetizing scarcity more directly through price, with like-for-like increases of ~25%

in some instances as customers pay for shorter lead times, while CommScope has

indicated it still has adequate supply to support growth. GLW’s relative lack of

similar pricing commentary therefore looks less like weaker demand and more like a

function of capacity already committed under large customer agreements, which

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