Corning Incorporated (GLW.N): Reaffirms Sales Growth Acceleration and Improving Returns: Maintain Buy

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Corning Incorporated (GLW.N): Reaffirms Sales Growth Acceleration and Improving Returns: Maintain Buy

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28 Jul 2026 15:28:38 ET │ 14 pages

Corning Incorporated (GLW.N)

Reaffirms Sales Growth Acceleration and Improving Returns:

Maintain Buy

CITI'S TAKE

Results upsided expectations on better optical and solar performance with Buy

better than expected margins. Revenue guide is a smidge below consensus

at the midpoint while EPS is above with $20bln run rate likely to be achieved Price (28 Jul 26 13:04) US$120.49

a quarter earlier than expected. Management reaffirmed their expectations Target price US$220.00↓

for revenue growth acceleration ahead (19% CAGR) as per their Springboard

from US$240.00updates in May, with EPS to grow faster and improving ROIC and FCF

margins. We continue to rate Corning shares Buy and believe it remains Expected share price 82.6%well-positioned for secular demand tailwinds, coupled with margin return

expansion potential driving a ~40+% EPS growth CAGR (through 2028E). Expected dividend yield 0.9%Our estimates undergo minor revisions. Our $220 Target Price reflects lower

peer /market multiples on 32x CY28 estimates (prior 35x) discounted back Expected total return 83.5%

to reflect stronger-for-longer demand coupled with margin improvement Market Cap US$103,698M

potential.

Fundamentals — Revenues of $4.74B (+17%yy, +9%qq) were above guidance of

$4.6B and above Street (FactSet) expectations of $4.63B. Gross margins were Price Performance

39.6% vs Street 38.7%. Adjusted operating margins were 20.9% vs Street 20.6%. (RIC: GLW.N, BB: GLW US)

Non-GAAP EPS of $0.78 (+30% y/y) compared to guidance of $0.73–$0.77 and

Street $0.76. Adjusted FCF was $1.42B.

Guidance — F3Q26 sales outlook of $4.9-5B (+16%yy) vs Street $5.00B. EPS