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GLW Q4 Earnings Beat Estimates on Strength in Optical Communication

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Key Takeaways

  • GLW posted Q4 earnings and revenue beats, with growth driven by strong demand across several end markets.
  • Optical Communications revenue jumped 24% on Gen-AI demand, boosting segment income 57% year over year.
  • Core sales rose 14% to $4.41B, while gross profit and operating income increased year over year.

Corning Incorporated (GLW - Free Report) reported impressive fourth-quarter 2025 results, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. The advanced glass substrates producer witnessed revenue expansion year over year, driven by healthy sales across multiple end markets. The growing adoption of its advanced products for Gen-AI (generative artificial intelligence) applications is a tailwind. Its U.S.-made solar products are also gaining solid market traction.

Net Income of GLW

On a GAAP basis, the company reported a net income of $540 million or 62 cents per share compared to a net income of $310 million or 36 cents in the year-ago quarter. Solid top-line growth led to higher net income.

Core earnings for the reported quarter were $624 million or 72 cents per share, up from $497 million or 57 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 2 cents.

On a GAAP basis, the company reported a net income of $1.59 billion in 2025 or $1.83 per share compared to $506 or 58 cents per share in 2024. Core net income was $2.19 billion or $2.52 per share compared to $1.69 billion or $1.96 per share in 2024.

Corning Incorporated Price, Consensus and EPS Surprise

Corning Incorporated Price, Consensus and EPS Surprise

Corning Incorporated price-consensus-eps-surprise-chart | Corning Incorporated Quote

GLW’s Revenues

Net sales, on a GAAP basis, were $4.21 billion, up from $3.5 billion reported in the year-ago quarter. Solid traction in mobile consumer electronics, premium smartphone verticals and Optical Communications boosted net sales. Core sales were up 14% to $4.41 billion. The top line beat the consensus estimate of $4.32 billion.

GLW’s Segment Results

Optical Communications generated $1.7 billion in revenues, up 24% year over year, backed by strong demand for Gen AI products in the Enterprise Network Business and growing demand for datacenter interconnect. Net income from this segment improved to $305 million, up 57% year over year.

Display Technologies registered $955 million in revenues, down 2% year over year. The segment’s net income was $257 million, down 2% year over year.

Net sales from Specialty Materials were $544 million, up 6% year over year, as demand for premium glass for mobile devices remained strong. Net income for the segment was $99 million, up from $81 million a year ago.

The Automotive business contributed $440 million in net sales, down 1% year over year owing to weaker heavy-duty diesel market in North America and Europe. The segment is created by separating the Automotive Glass Solutions business from Hemlock and the Emerging Growth Business and converging it with the Environmental Technologies segment. Net income was $63 million, up 3% year over year.

Revenues from the Life Sciences segment were $246 million compared with the year-earlier quarter’s figure of $250 million. Segment net income was $14 million, down 22% year over year.

Hemlock and Emerging Growth Businesses reported 62% growth in net sales year over year to $526 million. The segment reported a net income of $1 million compared with a net income of $10 million in the year-ago quarter.

Other Details of GLW's Q4 Results

Quarterly gross profit increased to $1.49 billion from $1.19 billion, with respective margins of 35.5% and 34.2%. Operating income was $672 million, up from $393 million in the prior-year quarter. Core gross margin was 38.1%, compared to 38.6% in the year-ago quarter.

GLW’s Cash Flow & Liquidity

During the December quarter, Corning generated $1.05 billion of net cash from operations compared with a cash flow of $623 million in the year-earlier quarter. In 2025, it generated a cash flow of $2.69 billion compared to $1.93 billion in 2024. As of Dec 31, 2025, the company had $1.52 billion in cash and cash equivalents with $7.63 billion of long-term debt compared to respective tallies of $1.76 billion and $6.88 billion in 2024.

GLW’s Q1 Outlook

For the first quarter of 2026, core sales are estimated to be in the range of $4.2-$4.3 billion. Core EPS is expected to be in the range of 66-70 cents.

Zacks Rank

GLW currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Arista Networks Inc. (ANET - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.

Akamai Technologies, Inc. (AKAM - Free Report) is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.4% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.

Motorola Solutions, Inc. (MSI - Free Report) is set to release fourth-quarter 2025 earnings on Feb 12. The Zacks Consensus Estimate for earnings is pegged at $4.36 per share, implying growth of 7.92% from the year-ago reported figure.

Motorola has a long-term earnings growth expectation of 9.07%. The company delivered an average earnings surprise of 5.5% in the last four reported quarters.

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