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Corning (GLW) Stock Plunges 7% After Record Quarter – AI Boom vs. Fiber Headwinds
28 October 2025
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Corning (GLW) Stock Plunges 7% After Record Quarter – AI Boom vs. Fiber Headwinds

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  • Stock snapshot: GLW traded around the mid-$80s as of Oct 28 (opened ~$89.61 on Oct 28 [1]), up roughly +80–85% year-to-date on heavy AI/5G optimism [2].
  • Q3 results: Corning reported core sales of $4.27B (+14% YoY) and core EPS of $0.67 (+24%) [3], both beating consensus estimates. CEO Wendell Weeks called it “another excellent quarter” under Corning’s Springboard plan [4].
  • Segment performance: The Optical Communications unit was a star – enterprise (data-center) sales jumped 58%, driving total optical revenue up ~33% to $1.65B [5] [6]. Corning’s solar materials (Hemlock) also boomed, with sales up 46% to $364M on strong U.S. solar wafer demand [7]. By contrast, legacy segments lagged: Display Technologies sales fell ~7% YoY [8], and automotive glass demand is soft (S&P forecasts automotive unit sales down ~3% in 2025 [9]).
  • Outlook: Management guided Q4 core sales around $4.35–4.40B and EPS $0.68–0.72 (above Street forecasts) [10] [11]. The optical boom and solar expansion underpin this optimism. In fact, one analysis projects Corning’s optical segment could grow 39% in 2025 (to $6.5B) on AI/data-center spending [12], and net income might jump to ~$2.0B in 2025 vs $0.5B in 2024 [13].
  • Market reaction: Despite the beat, GLW stock fell ~5–7% after hours on Oct 28 [14] [15]. Analysts describe this as a classic “sell the news” move [16]. The dip was attributed to a slightly weaker optical result (fiber sales of $1.65B missed the ~$1.73B estimate) and lingering China trade woes (a 37.9% anti-dumping tariff on U.S. fiber optics) [17]. After the dust settled, shares were trading back near the previous high–the stock even opened up ~2.5% midday on Oct 28 [18].
  • Strategic tie-ups: Corning continues to expand in high-tech markets. Notably, Apple agreed to invest $2.5B to make all iPhone/Watch cover glass at Corning’s Kentucky plant [19] [20]. Corning is also partnering with QuantumScape on ceramic battery separators for solid-state EV batteries [21], and with GlobalFoundries on co-packaged fiber optics (using Corning’s GlassBridge waveguides) for AI servers [22]. In building glass, Corning’s ultra-thin “Enlighten” glass is being adopted for lighter, high-efficiency windows in collaboration with Erdman Automation [23].
  • Analyst outlook: The consensus among experts is cautiously bullish. A majority of analysts rate GLW a Buy, with an average price target near $73 [24]. Some see upside; Citigroup raised its target to $93 [25], Morgan Stanley to $75, reflecting confidence in the AI-driven growth. Corning’s current valuation (P/E ~95 [26]) is high, justified by expected earnings growth from AI and 5G investments. The company pays a modest dividend ($0.28/quarter, ~1.2% yield [27]) and has strong cash flow (Q3 adjusted free cash flow was $535M [28]).

The Bottom Line: Corning’s latest earnings showcase the power of AI and onshoring trends for a “materials” stock. Optical fiber and solar segments are booming, while older markets like LCD panels and conventional auto glass cool off. Management’s guidance is upbeat, and analysts generally applaud the growth story. However, investors should be aware of near-term volatility: the stock’s sharp rally may have baked in a lot of expectations (and Chinese tariffs remain a risk) [29]. In Google News style, our takeaway is that Corning’s fundamentals look strong, but the market is testing whether this AI glass play can sustain its premium valuation [30] [31].

Sources: Official earnings releases and financial news outlets. Key results and quotes are drawn from Corning’s Q3 release [32] [33] and market analyses [34] [35] [36]. Analyst forecasts and partnership news cited from Reuters, BusinessWire, S&P Global, and company press releases [37] [38] [39]. All figures and quotes are from publicly available reports and filings.

Corning CEO Wendell Weeks on Q2 results: Company growth driven by gen AI
Watch this video on YouTube.

References

1. www.marketbeat.com, 2. www.spglobal.com, 3. www.investing.com, 4. www.businesswire.com, 5. www.investing.com, 6. www.chartmill.com, 7. www.chartmill.com, 8. www.chartmill.com, 9. www.spglobal.com, 10. www.investing.com, 11. www.marketbeat.com, 12. www.spglobal.com, 13. www.spglobal.com, 14. www.investing.com, 15. www.marketscreener.com, 16. www.chartmill.com, 17. www.marketscreener.com, 18. www.marketbeat.com, 19. www.apple.com, 20. www.marketscreener.com, 21. www.quantumscape.com, 22. optics.org, 23. www.glassmagazine.com, 24. www.marketbeat.com, 25. www.marketbeat.com, 26. www.marketbeat.com, 27. www.marketbeat.com, 28. www.businesswire.com, 29. www.marketscreener.com, 30. www.spglobal.com, 31. www.investing.com, 32. www.businesswire.com, 33. www.investing.com, 34. www.investing.com, 35. www.marketscreener.com, 36. www.spglobal.com, 37. www.apple.com, 38. www.quantumscape.com, 39. optics.org

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Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

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