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T vs. GLW: Which Telecom Infrastructure Stock Is the Better Buy?
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Key Takeaways
T and GLW are expanding their telecom infrastructure presence amid rising fiber and AI connectivity demand.
Corning's Optical Communications sales surged 44% in Q3, while AT&T's Advanced Connectivity revenue grew 6.1%.
GLW shares gained 45.3% over the past year, while T fell 17.6%, highlighting contrasting stock performances.
AT&T, Inc. (T - Free Report) and Corning Incorporated (GLW - Free Report) are both prominent players in the U.S. telecommunications space. The companies operate in different segments of the telecom sector and are accelerating 5G and broadband infrastructure deployment across the country. The company is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. It provides wireless, local exchange, long-distance, broadband, Internet, video, managed networking, wholesale and cloud-based services. Corning is the leading supplier of optical fiber and connectivity solutions that support high-speed communications.
Per a report from Grand View Research, the U.S. Fiber to the Home market is projected to witness a 12.7% compound annual growth rate from 2025 to 2030. Let us delve deeper into the companies’ competitive dynamics to see which is better positioned in this broader sector.
The Case for GLW
Corning is positioned to benefit from rising demand for optical connectivity as telecom operators and data center customers expand their networks. Its Optical Communications segment delivered a strong performance in the third quarter of 2026, with sales increasing 44% year over year to $2.38 billion and segment net income climbing 80% to $532 million.
Enterprise Networks was a key contributor, with sales advancing 84% to $1.53 billion as demand for AI-related connectivity products accelerated. Generative AI product sales more than doubled during the quarter. Carrier Networks also recorded growth, although at a more moderate 4%, supported by demand for data center interconnect solutions.
Customer commitments provide another source of support for the growth outlook. Corning secured four long-term, multibillion-dollar agreements during the quarter, including agreements with AT&T and Verizon Communications (VZ - Free Report) .
However, investors should consider the risks alongside this growth opportunity. The more modest expansion in Carrier Networks sales shows that demand is not increasing uniformly across the communications business. Moreover, Corning must invest in capacity to meet customer requirements. Growing competition, supply-chain uncertainty and fluctuations in global economic conditions remain major concerns. However, beyond telecom, Corning boasts a comprehensive portfolio consisting of display solutions, consumer electronics, automotive and solar markets. Such a diverse portfolio reduces its vulnerability to any one sector.
Based on our proprietary calculation, trailing 12-month return on invested capital reached 10.8%, above Corning's 10-year median of 7.8%, its five-year median of 8.7% and three-year median of 8.6%, but slightly below the industry median of 11.2%. Higher optical volumes and operating leverage are helping returns recover as the company expands its AI connectivity platform.
The Case for T
T offers a different way to participate in telecom infrastructure growth. Rather than supplying optical communications equipment, the company operates fiber and wireless networks. It monetizes them through connectivity services for consumers and businesses. In the third quarter of 2026, AT&T's consolidated revenues increased 5.3% year over year to $32.3 billion, while Advanced Connectivity service revenues grew 6.1% to $23.9 billion. Customer additions remained strong: the company recorded 769,000 Internet net additions, including 442,000 fiber connections, and added 379,000 postpaid phone subscribers. Its strategy of combining home internet and wireless services is also gaining traction, with 42.8% of advanced home internet customers maintaining a postpaid wireless account.
Fiber expansion is emerging as another avenue for growth. AT&T had reached more than 39 million fiber locations by the end of the third quarter and is targeting more than 60 million locations by the end of 2030. The company's network is also close to a substantial share of mapped U.S. data centers, creating opportunities to serve rising demand for high-capacity connectivity associated with AI workloads and enterprise networking.
However, AT&T faces challenges in translating customer growth into stronger per-customer economics and sustainable cash generation. Fiber ARPU declined 4% year over year in the third quarter as introductory offers, bundle discounts and the mix of acquired customers weighed on revenue per connection. The company faces stiff competition from other major players in the industry such as Verizon (VZ - Free Report) and T-Mobile.
The financial burden of network deployment is another consideration. AT&T reported $5.6 billion in capital investment during the third quarter, while its net debt-to-adjusted-EBITDA ratio increased to 3.13 times following its spectrum acquisition. High capex is putting pressure on free cash flow.
How Do Zacks Estimates Compare for GLW & T?
The Zacks Consensus Estimate for GLW’s 2026 sales and EPS implies year-over-year growth of 18.2% and 29.1%, respectively. The EPS estimate for 2026 has moved northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AT&T’s 2026 sales and EPS implies year-over-year growth of 2.6% and 1.9%, respectively. The EPS estimate for 2026 has moved northward over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of T & GLW
Over the past year, GLW shares have gained 45.3% against T’s decline of 17.6%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, T’s shares currently trade at 8.19 forward earnings, significantly lower than 31.49 for GLW.
Both GLW and T are taking several initiatives to capitalize on the emerging opportunities in the telecom sector. However, AT&T’s high debt obligation and greater exposure to stiff competition in the highly saturated U.S. telecom space are concerning. With strong momentum in the optical connectivity segment backed by AI-related demand and a better Zacks Rank, Corning is a better investment choice at present.
View the Zacks #1 Rank List
Image: Bigstock
T vs. GLW: Which Telecom Infrastructure Stock Is the Better Buy?
Key Takeaways
AT&T, Inc. (T - Free Report) and Corning Incorporated (GLW - Free Report) are both prominent players in the U.S. telecommunications space. The companies operate in different segments of the telecom sector and are accelerating 5G and broadband infrastructure deployment across the country. The company is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. It provides wireless, local exchange, long-distance, broadband, Internet, video, managed networking, wholesale and cloud-based services. Corning is the leading supplier of optical fiber and connectivity solutions that support high-speed communications.
Per a report from Grand View Research, the U.S. Fiber to the Home market is projected to witness a 12.7% compound annual growth rate from 2025 to 2030. Let us delve deeper into the companies’ competitive dynamics to see which is better positioned in this broader sector.
The Case for GLW
Corning is positioned to benefit from rising demand for optical connectivity as telecom operators and data center customers expand their networks. Its Optical Communications segment delivered a strong performance in the third quarter of 2026, with sales increasing 44% year over year to $2.38 billion and segment net income climbing 80% to $532 million.
Enterprise Networks was a key contributor, with sales advancing 84% to $1.53 billion as demand for AI-related connectivity products accelerated. Generative AI product sales more than doubled during the quarter. Carrier Networks also recorded growth, although at a more moderate 4%, supported by demand for data center interconnect solutions.
Customer commitments provide another source of support for the growth outlook. Corning secured four long-term, multibillion-dollar agreements during the quarter, including agreements with AT&T and Verizon Communications (VZ - Free Report) .
However, investors should consider the risks alongside this growth opportunity. The more modest expansion in Carrier Networks sales shows that demand is not increasing uniformly across the communications business. Moreover, Corning must invest in capacity to meet customer requirements. Growing competition, supply-chain uncertainty and fluctuations in global economic conditions remain major concerns. However, beyond telecom, Corning boasts a comprehensive portfolio consisting of display solutions, consumer electronics, automotive and solar markets. Such a diverse portfolio reduces its vulnerability to any one sector.
Based on our proprietary calculation, trailing 12-month return on invested capital reached 10.8%, above Corning's 10-year median of 7.8%, its five-year median of 8.7% and three-year median of 8.6%, but slightly below the industry median of 11.2%. Higher optical volumes and operating leverage are helping returns recover as the company expands its AI connectivity platform.
The Case for T
T offers a different way to participate in telecom infrastructure growth. Rather than supplying optical communications equipment, the company operates fiber and wireless networks. It monetizes them through connectivity services for consumers and businesses.
In the third quarter of 2026, AT&T's consolidated revenues increased 5.3% year over year to $32.3 billion, while Advanced Connectivity service revenues grew 6.1% to $23.9 billion. Customer additions remained strong: the company recorded 769,000 Internet net additions, including 442,000 fiber connections, and added 379,000 postpaid phone subscribers. Its strategy of combining home internet and wireless services is also gaining traction, with 42.8% of advanced home internet customers maintaining a postpaid wireless account.
Fiber expansion is emerging as another avenue for growth. AT&T had reached more than 39 million fiber locations by the end of the third quarter and is targeting more than 60 million locations by the end of 2030. The company's network is also close to a substantial share of mapped U.S. data centers, creating opportunities to serve rising demand for high-capacity connectivity associated with AI workloads and enterprise networking.
However, AT&T faces challenges in translating customer growth into stronger per-customer economics and sustainable cash generation. Fiber ARPU declined 4% year over year in the third quarter as introductory offers, bundle discounts and the mix of acquired customers weighed on revenue per connection. The company faces stiff competition from other major players in the industry such as Verizon (VZ - Free Report) and T-Mobile.
The financial burden of network deployment is another consideration. AT&T reported $5.6 billion in capital investment during the third quarter, while its net debt-to-adjusted-EBITDA ratio increased to 3.13 times following its spectrum acquisition. High capex is putting pressure on free cash flow.
How Do Zacks Estimates Compare for GLW & T?
The Zacks Consensus Estimate for GLW’s 2026 sales and EPS implies year-over-year growth of 18.2% and 29.1%, respectively. The EPS estimate for 2026 has moved northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AT&T’s 2026 sales and EPS implies year-over-year growth of 2.6% and 1.9%, respectively. The EPS estimate for 2026 has moved northward over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of T & GLW
Over the past year, GLW shares have gained 45.3% against T’s decline of 17.6%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, T’s shares currently trade at 8.19 forward earnings, significantly lower than 31.49 for GLW.
Image Source: Zacks Investment Research
AT&T or Corning: Which is a Better Pick?
AT&T carries a Zacks Rank #3 (Hold), while Corning sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both GLW and T are taking several initiatives to capitalize on the emerging opportunities in the telecom sector. However, AT&T’s high debt obligation and greater exposure to stiff competition in the highly saturated U.S. telecom space are concerning. With strong momentum in the optical connectivity segment backed by AI-related demand and a better Zacks Rank, Corning is a better investment choice at present.