Corning Incorporated (NYSE: GLW) announced significant growth in its fourth-quarter and full-year results for 2025, revealing a robust demand for its innovations, particularly in the Optical Communications sector. Chairman and CEO Wendell Weeks highlighted that fourth-quarter sales surged by 14% year over year, reaching $4.41 billion, while core earnings per share (EPS) increased by 26% to $0.72. This performance was bolstered by the successful implementation of Corning’s “Springboard” plan, designed to enhance profitability and cash generation.
Key Financial Highlights and Springboard Achievements
In the fourth quarter, Corning expanded its operating margin by 170 basis points, achieving a margin of 20.2%. The company also reported a return on invested capital (ROIC) increase of 150 basis points to 14.2%, reaching its Springboard operating margin target a year ahead of schedule. For the full year, Corning experienced double-digit sales growth, with EPS growth “twice as fast as sales” and free cash flow increasing to $1.72 billion, nearly doubling from $880 million in 2023.
Weeks and David Schlesinger, Corning’s Chief Financial Officer, emphasized the advancements made under the Springboard initiative, which launched in late 2023. Since its inception, the company has seen a 390 basis point increase in operating margin and an 85% rise in EPS. Given this momentum, Corning has adjusted its long-term sales targets, aiming for an additional $11 billion in annualized sales by the end of 2028, up from an initial target of $8 billion.
New Strategic Partnerships and Market Outlook
A major focus of the earnings call was Corning’s newly established multi-year partnership with Meta, valued at up to $6 billion. This agreement aims to support Meta’s applications and artificial intelligence initiatives through Corning’s cutting-edge optical fiber and connectivity solutions. Weeks described Meta as a key customer that will help enhance Corning’s manufacturing capabilities in North Carolina.
To manage costs and risks, Corning is structuring these partnerships to include customer prepayments and long-term commitments, similar to previous agreements made with companies such as Apple. As Corning seeks to expand its customer base, Weeks indicated that additional negotiations are ongoing, with prospective agreements akin in scale to the Meta partnership.
Looking ahead, Corning projects first-quarter core sales between $4.2 billion and $4.3 billion, reflecting an approximately 15% year-over-year increase. EPS for the first quarter is forecasted to be between $0.66 and $0.70, up about 26%.
In terms of capital expenditures, Corning anticipates spending around $1.7 billion in 2026, a rise from just under $1.3 billion in 2025. Schlesinger noted that investments in Optical Communications would be a significant focus, particularly in light of the Meta agreement.
As the call concluded, Weeks announced the retirement of Ann Nicholson, Vice President of Investor Relations, after 40 years with the company, marking a significant milestone in Corning’s history.
Corning Incorporated, headquartered in Corning, New York, specializes in the manufacture of specialty glass, ceramics, and related technologies. The company plays a critical role across various industries, including telecommunications, consumer electronics, and life sciences, emphasizing innovation and precision in its product offerings.
