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GLW Stock Rises 32.5% in a Year: Is There Still Room to Grow?
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Key Takeaways
Corning's shares gain 32.5% in a year, outperforming its industry and key competitors.
Optical Communications sales jumped 44% to $2.38 billion in Q3 2026, fueled by AI infrastructure demand.
Solar sales rose 37% to $436 million as Corning expands domestic manufacturing.
Corning Incorporated (GLW - Free Report) shares have surged 32.5% in a year compared with the communications components industry’s growth of 25.5%. The stock has outperformed the S&P 500 Index during this period.
Image Source: Zacks Investment Research
The stock has outperformed its competitors, Ciena Corporation (CIEN - Free Report) and Amphenol Corporation (APH - Free Report) . Ciena has gained 15.2%, while Amphenol has risen 19.5%.
AI Infrastructure is Driving Growth in Optical Communications
Corning's Optical Communications business continues to benefit from rising investments in AI infrastructure, cloud computing and high-speed data center connectivity. The growing scale of AI workloads is increasing bandwidth requirements and creating demand for advanced optical fiber, cables and connectivity solutions. This trend is reflected in the company's third-quarter 2026 performance, with Optical Communications sales increasing 44% year over year to $2.38 billion. Segment net income also surged 80% to $532 million, reflecting strong revenue growth and improved profitability.
The company’s expanding relationships with major technology and telecommunications customers provide additional visibility into its growth prospects. During the third quarter, the company secured four long-term, multibillion-dollar customer agreements, including with Verizon and AT&T. Its existing partnerships with Meta, Amazon and NVIDIA further strengthen its position in the expanding AI infrastructure market. These agreements are strategically important because they help align manufacturing capacity with customer requirements while enabling Corning to share investment costs and risks with its partners.
Solar Expansion Creates Another Long-Term Growth Opportunity
Corning's expanding solar manufacturing operations represent another potential contributor to its long-term growth strategy. The company is building a vertically integrated domestic solar platform covering polysilicon, wafer production and solar module manufacturing. This presence across multiple stages of the supply chain provides an opportunity to benefit from increasing demand for U.S.-manufactured solar products.
In the third quarter of 2026, Solar segment sales increased 37% year over year to $436 million. Corning continues to ramp up production at its wafer and module facilities, with management expecting better manufacturing productivity to gradually improve output and profitability. Demand conditions are also becoming more favorable for domestic suppliers. Recent U.S. trade action under Section 232 of the Trade Expansion Act of 1962 has improved the pricing environment and strengthened demand for U.S.-made solar products. Against this backdrop, the company is making progress toward establishing a solar revenue stream exceeding $3 billion.
Estimate Revision Trend
Earnings estimates for Corning’s 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of GLW
From a valuation standpoint, GLW is currently trading at a premium compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 26.7 forward 12-month earnings, higher than 21.6 for the industry.
Image Source: Zacks Investment Research
End Note
Corning's growth outlook is increasingly supported by strong demand for optical connectivity solutions, particularly as investments in AI infrastructure and data centers accelerate. Multiyear customer agreements, expanding manufacturing capacity and the company's Springboard initiative provide additional support for its long-term growth ambitions. The Solar business also offers an attractive opportunity as Corning expands its domestic manufacturing operations and seeks to capitalize on demand for U.S.-made products. Owing to these factors and a Zacks Rank #1 (Strong Buy), Corning is a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image: Bigstock
GLW Stock Rises 32.5% in a Year: Is There Still Room to Grow?
Key Takeaways
Corning Incorporated (GLW - Free Report) shares have surged 32.5% in a year compared with the communications components industry’s growth of 25.5%. The stock has outperformed the S&P 500 Index during this period.
Image Source: Zacks Investment Research
The stock has outperformed its competitors, Ciena Corporation (CIEN - Free Report) and Amphenol Corporation (APH - Free Report) . Ciena has gained 15.2%, while Amphenol has risen 19.5%.
AI Infrastructure is Driving Growth in Optical Communications
Corning's Optical Communications business continues to benefit from rising investments in AI infrastructure, cloud computing and high-speed data center connectivity. The growing scale of AI workloads is increasing bandwidth requirements and creating demand for advanced optical fiber, cables and connectivity solutions. This trend is reflected in the company's third-quarter 2026 performance, with Optical Communications sales increasing 44% year over year to $2.38 billion. Segment net income also surged 80% to $532 million, reflecting strong revenue growth and improved profitability.
The company’s expanding relationships with major technology and telecommunications customers provide additional visibility into its growth prospects. During the third quarter, the company secured four long-term, multibillion-dollar customer agreements, including with Verizon and AT&T. Its existing partnerships with Meta, Amazon and NVIDIA further strengthen its position in the expanding AI infrastructure market. These agreements are strategically important because they help align manufacturing capacity with customer requirements while enabling Corning to share investment costs and risks with its partners.
Solar Expansion Creates Another Long-Term Growth Opportunity
Corning's expanding solar manufacturing operations represent another potential contributor to its long-term growth strategy. The company is building a vertically integrated domestic solar platform covering polysilicon, wafer production and solar module manufacturing. This presence across multiple stages of the supply chain provides an opportunity to benefit from increasing demand for U.S.-manufactured solar products.
In the third quarter of 2026, Solar segment sales increased 37% year over year to $436 million. Corning continues to ramp up production at its wafer and module facilities, with management expecting better manufacturing productivity to gradually improve output and profitability. Demand conditions are also becoming more favorable for domestic suppliers. Recent U.S. trade action under Section 232 of the Trade Expansion Act of 1962 has improved the pricing environment and strengthened demand for U.S.-made solar products. Against this backdrop, the company is making progress toward establishing a solar revenue stream exceeding $3 billion.
Estimate Revision Trend
Earnings estimates for Corning’s 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of GLW
From a valuation standpoint, GLW is currently trading at a premium compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 26.7 forward 12-month earnings, higher than 21.6 for the industry.
Image Source: Zacks Investment Research
End Note
Corning's growth outlook is increasingly supported by strong demand for optical connectivity solutions, particularly as investments in AI infrastructure and data centers accelerate. Multiyear customer agreements, expanding manufacturing capacity and the company's Springboard initiative provide additional support for its long-term growth ambitions. The Solar business also offers an attractive opportunity as Corning expands its domestic manufacturing operations and seeks to capitalize on demand for U.S.-made products. Owing to these factors and a Zacks Rank #1 (Strong Buy), Corning is a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here.