Corning (NYSE:GLW) reported fourth-quarter and full-year 2025 results that management said reflected accelerating demand for its innovations—particularly in Optical Communications—and the impact of its “Springboard” plan to improve profitability and cash generation.
Fourth-quarter and full-year results
Chairman and CEO Wendell Weeks said fourth-quarter 2025 sales rose 14% year over year to $4.41 billion, while core EPS grew 26% to $0.72. Corning expanded operating margin by 170 basis points to 20.2% and increased return on invested capital (ROIC) by 150 basis points to 14.2%, achieving its Springboard operating margin target of 20% a full year ahead of plan. Weeks also noted that full-year 2025 delivered double-digit sales growth, with EPS growing “twice as fast as sales” and free cash flow growing “three times faster than sales.”
Springboard milestones and upgraded sales targets
Weeks and Schlesinger both emphasized progress under the Springboard plan, which launched in late 2023. Weeks said that since the plan’s Q4 2023 launch point, Corning expanded operating margin by 390 basis points to 20.2%, grew EPS 85% to $0.72, and expanded ROIC by 540 basis points to about 14%. He added that full-year free cash flow nearly doubled to $1.72 billion in 2025 from $880 million in 2023.
Alongside the earnings release, Corning upgraded its long-term sales ambitions. Weeks said the company is raising its internal Springboard target to add $11 billion in incremental annualized sales by the end of 2028, up from the original $8 billion. For 2026, Corning raised its internal plan to add $6.5 billion in incremental annualized sales by year-end (from $6 billion), and raised its “high confidence” plan to $5.75 billion (from $4 billion). Schlesinger said Corning has “significantly closed the difference” between the high-confidence and internal plans due to increased visibility, product success, and customer commitments.
Management said it is not changing the company’s operating margin target, with Schlesinger reiterating a goal of staying at “20% or above” operating margin and handling profitability expectations through normal quarterly guidance.
Meta agreement and capacity strategy in Optical Communications
A key focus of the call was Corning’s newly announced multi-year agreement with Meta. Weeks said Corning and Meta entered an “up to $6 billion” partnership to support Meta’s apps, technologies, and AI ambitions using Corning’s latest innovations in optical fiber, cable, and connectivity solutions. He described Meta as an anchor customer for expanding and upgrading Corning’s manufacturing and technology capabilities in North Carolina, and said the company is concluding “similar long-term agreements with other major customers” to dedicate capacity as well.
Weeks said Corning is structuring these agreements to share cost and risk with customers, citing components such as customer prepayments and long-term customer commitments to provide revenue assurance. He compared the approach to Corning’s Gen 10.5 display agreements and Apple’s $2.5 billion commitment tied to producing cover glass in Kentucky.
In Q&A, Weeks said the additional agreements being negotiated are “similar size and scale” to the Meta deal, but Corning has not included “everything that those could mean” in its plan until the agreements are concluded. He added that the financial impact is expected to be more visible in 2027 and build through 2028 because the company is dedicating capacity now under construction.
Addressing the optical fiber market, Weeks said Corning believes “there is enough fiber in the world to meet demand,” but demand for the company’s “new high-density products in fiber, in cable, and in connectivity” is robust. He said if Corning “could make more of these new products, we could sell more,” and indicated that over time the mix shift to higher-value innovations should support profitability.
Segment performance highlights
- Optical Communications: Q4 sales were $1.7 billion, up 24% year over year, with net income of $305 million (up 57%) and an 18% net income margin. Full-year sales were $6.3 billion (up 35%), with net income of $1.0 billion (up 71%). Schlesinger said the majority of growth was driven by adoption of new GenAI products. He said the enterprise business (inside the data center) grew 61% for the full year, and the hyperscale portion grew significantly faster, while carrier networks grew 15%—primarily driven by data center interconnect.
- Display: Q4 sales were $955 million with net income of $257 million. For the full year, Schlesinger said Corning exceeded its targets, delivering $993 million in net income and a 27% net income margin versus a stated goal of $900 million–$950 million and 25% margin. Looking to Q1, he expects the glass market and Corning’s volume to be down mid-single digits sequentially due to seasonality. He also said Corning implemented double-digit price increases in the second half of 2024 to maintain stable U.S. dollar net income in a weaker yen environment and has hedges in place for 2026 and beyond through 2030, while continuing to expect $900 million–$950 million annual net income at roughly 25% margin.
- Specialty Materials: Q4 sales rose 6% to $544 million and net income increased 22% to $99 million. Full-year sales grew 10% to $2.2 billion and net income rose 41% to $367 million. Schlesinger attributed results to demand for premium products and growth in Gorilla Glass Solutions, and he highlighted a Samsung flagship device example featuring Corning materials.
- Automotive: Q4 sales of $440 million were down slightly year over year; full-year sales were down 3%. Full-year net income was $63 million, up 3%, with Schlesinger citing weak heavy-duty diesel markets and strong manufacturing performance.
- Life Sciences: Full-year sales were $972 million, consistent with the prior year, and net income was $61 million.
- Hemlock and Emerging Growth Businesses: Q4 sales were $526 million, up 62% on polysilicon and solar module growth, while net income was $1 million, down year over year. Schlesinger said the primary drag on profitability is the cost of ramping additional solar capacity and reiterated a plan to build solar into a $2.5 billion revenue stream by 2028 with profitability at or above the Corning average.
Outlook, capital spending, and capital returns
For the first quarter, Corning guided to core sales of approximately $4.2 billion to $4.3 billion, up about 15% year over year, and core EPS of $0.66 to $0.70, up about 26%. Schlesinger said Q1 guidance includes a temporary impact from the solar ramp of about $0.03 to $0.05, similar to Q4, and he expects sales to increase and profitability to improve through 2026.
For 2026, Corning expects capital expenditures of about $1.7 billion, up from “a little under” $1.3 billion in 2025. Schlesinger said Optical Communications is a major destination for investment, and in response to questions about Meta-related spending, he said some planned 2026 capex is tied to the Meta deal, though Corning does not disclose individual agreement details. He reiterated that customer support can appear in different forms—sometimes as upfront payments that offset capital and other times through contract mechanisms that may affect cash flow differently.
On capital allocation, Schlesinger said Corning prioritizes investing in organic growth opportunities that drive significant returns, while maintaining a strong and efficient balance sheet. He noted Corning has “one of the longest debt tenors in the S&P 500,” with an average debt maturity of about 21 years and no significant maturities concentrated in any given year. He also said share buybacks are expected to be the primary vehicle for returning excess cash to shareholders, noting Corning restarted repurchases in the second quarter of 2024 and has continued buying back shares each quarter since.
Late in the call, Weeks announced that Vice President of Investor Relations Ann Nicholson will retire after 40 years with the company.
About Corning (NYSE:GLW)
Corning Incorporated is a global manufacturer specializing in specialty glass, ceramics and related materials and technologies. Headquartered in Corning, New York, the company supplies engineered materials and components used across multiple industries, including consumer electronics, telecommunications, automotive emissions control, pharmaceutical and life sciences, and industrial and scientific applications. Corning emphasizes materials science and precision manufacturing to develop durable, high-performance glass and ceramic products.
Key product lines include specialty display glass used by television and mobile-device manufacturers, cover glass marketed under well-known trade names for smartphones and tablets, and optical fiber and cable and related hardware for telecommunications networks.
