Corning Inc. (NYSE:GLW) reported better-than-expected second-quarter 2025 results Tuesday and announced a third-quarter outlook, citing continued strong demand for its generative AI and U.S.-made solar products.
The company posted adjusted earnings of 60 cents per share, beating analyst estimates of 57 cents. Core sales rose 12% year-over-year to $4.04 billion, exceeding the $3.86 billion consensus.
Core EPS grew 28%, while adjusted free cash flow increased 28% to $451 million. The core operating margin expanded by 160 basis points to 19%.
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On a GAAP basis, Corning reported $3.86 billion in revenue, up from $3.25 billion a year ago, and net income of $469 million, compared with $104 million in the same quarter last year. The company said the difference between GAAP and core EPS primarily reflected mark-to-market adjustments on currency-related contracts and constant currency changes.
Optical Communications revenue rose 41% to $1.57 billion, driven by an 81% year-over-year increase in enterprise sales. Display sales declined 11% year over year to $898 million.
“Year over year, core sales grew 12% while core operating margin expanded 160 basis points to 19%, core EPS grew 28%, and core ROIC improved 210 basis points to 13.1%,” said Ed Schlesinger, executive vice president and chief financial officer. “Additionally, adjusted free cash flow grew 28% year-over-year to $451 million.”
Specialty Materials revenue climbed 9% to $545 million, while Automotive sales declined 4% to $460 million. Life Sciences held steady at $250 million. Hemlock and Emerging Growth Businesses’ revenue increased 31% to $326 million.
Operating cash flow for the quarter was $708 million, with adjusted free cash flow at $451 million, both up from the prior year.
“We expect our strong Springboard performance to continue,” said Wendell P. Weeks, chairman and chief executive officer. “Customer response to our new Gen AI and U.S.-made solar products has been remarkable. We’re driving more Corning content into our Mobile Consumer Electronics, Display, Automotive, and Optical Communications platforms. We also anticipate new growth drivers to emerge, as customers increasingly leverage our large U.S. advanced manufacturing footprint.”
Outlook
For the third quarter, Corning expects core sales of $4.2 billion, above the Street estimate of $4.01 billion, and adjusted EPS in the range of 63 to 67 cents, ahead of the 61-cent consensus.
Management anticipates continued strong performance under its Springboard plan, with double-digit year-over-year growth in both sales and earnings.
Guidance includes a $0.01 to $0.02 impact from tariffs and a $0.02 to $0.03 temporary cost increase associated with scaling production to meet demand for Gen AI and solar offerings.
Price Action: GLW shares are trading higher by 13.3% to $62.77 at last check Tuesday.
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