Corning Incorporated (NYSE: GLW) reported a 19% increase in third-quarter 2026 core sales, led by rapid growth in its Optical Communications segment as generative AI-related product sales more than doubled. Profitability rose faster than revenue, while the company projected another quarter of approximately 19% sales growth for the fourth quarter.
Core sales reached $5.08 billion, up from $4.27 billion a year earlier. Core net income attributable to Corning rose to $795 million from $585 million, and core earnings per share increased 36% to $0.91 from $0.67.
Core operating income climbed to $1.15 billion from $838 million. The core operating margin expanded 310 basis points to 22.7%, while the core gross margin rose 150 basis points to 40.5%. Corning also reported core return on invested capital of 16.7%, compared with 13.4% in the prior-year quarter.
On a GAAP basis, third-quarter net sales increased to $4.86 billion from $4.10 billion. Net income attributable to Corning was $680 million, or $0.78 per diluted share, compared with $430 million, or $0.50 per diluted share, a year earlier.
Optical Communications leads growth
Optical Communications was the main driver of the quarter. Segment sales advanced 44% to $2.38 billion, and segment net income rose 80% to $532 million, which Corning described as another quarter of record profitability.
Enterprise network sales increased 84% to $1.53 billion, with generative AI product sales growing by more than 100%. Carrier network sales rose 4% to $854 million, supported by growth in data-center interconnect products. Management said long-term customer agreements help underpin the growth opportunity identified in its Springboard plan.
Glass Innovations sales declined 3% to $1.51 billion, while segment net income fell 10% to $328 million. Corning said it outperformed its end markets through its “More Corning” content strategy, although memory prices affected markets for televisions, handheld devices and notebooks. The company said price adjustments for display glass substrates would begin taking effect in the fourth quarter to address the weaker yen and higher costs for items including critical materials and energy.
Automotive sales increased 4% to $470 million, but segment net income slipped 1% to $67 million. Recovery in the North American Class 8 truck market more than offset a 3% decline in the light-duty vehicle market. Within the segment, diesel sales rose 26%, while auto, glass and other sales declined 5%.
Solar sales rose 37% to $436 million, although the segment recorded a $7 million net loss, compared with $30 million of net income a year earlier. Corning is continuing to ramp production at its wafer and module facilities and expects output and profitability to benefit as productivity improves. The company said demand remains strong and that recent U.S. trade action under Section 232 has supported the pricing environment and demand for domestically produced solar products. Management is working toward building the business into a revenue stream of more than $3 billion.
Life Sciences and Emerging Growth Businesses generated sales of $290 million, up 1%, and a net loss of $28 million. Corning said Life Sciences outperformed its end market, while investments in emerging growth programs weighed on segment earnings.
Cash flow supports capacity investment
Adjusted free cash flow totaled $661 million in the quarter, up from $535 million a year earlier, after $545 million of capital expenditures. For the first nine months of 2026, adjusted free cash flow reached $2.27 billion, compared with $985 million in the prior-year period.
Year-to-date core sales increased 18% to $14.16 billion, while core EPS rose to $2.40 from $1.81. The nine-month core operating margin expanded to 21.3% from 18.9%.
Corning expects full-year capital expenditures of approximately $2 billion. The company said organic growth investment remains its capital-allocation priority, with customer agreements using mechanisms including upfront funding to share investment risks and responsibilities. Management also expects free cash flow to grow through the Springboard period even as capacity investments continue.
Fourth-quarter outlook
For the fourth quarter, Corning expects core sales of $5.2 billion to $5.3 billion, representing approximately 19% year-over-year growth. Core EPS is projected at $0.96 to $1.00, or approximately 36% growth. Operating expenses are expected to remain consistent with the third quarter, while other expense is forecast at about $85 million to $95 million and non-controlling interest at approximately $80 million to $90 million.
The company continues to target a doubling of annualized sales from $20 billion to $40 billion by the end of 2030 under its Springboard plan. Management also expects EPS to grow faster than sales, alongside higher return on invested capital and robust free cash flow. Corning reported a third-quarter annualized sales run rate of $20.3 billion; its fourth-quarter sales forecast implies a run rate of about $21 billion at the midpoint.
Corning does not provide GAAP guidance because it does not forecast foreign-currency movements or other items outside ongoing operations. Effective April 1, 2026, the company replaced its prior constant-currency adjustment with an adjustment for hedged exposures. Corning noted that the two non-GAAP methodologies are distinct.
The outlook remains subject to risks including foreign-exchange movements, tariffs and trade tensions, changes in customer demand, supply-chain disruptions, raw-material and energy costs, competitive pricing and the company’s ability to pace capital spending with demand. Corning also identified the construction, ramp and operation of its solar manufacturing facilities—and the achievement of related revenue and profitability targets—as areas of uncertainty.
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