Corning Inc. (GLW), the company that makes the glass in your iPhone and Apple Watch, just delivered a quarter that shows what happens when you're selling picks and shovels during a gold rush. Except in this case, the gold rush is artificial intelligence, and the picks are fiber optic cables.
The Corning, N.Y.-based company reported fourth-quarter fiscal 2025 results Wednesday that beat analyst expectations across the board. Adjusted earnings came in at 72 cents per share, topping the 70-cent consensus. Core sales jumped 14% year-over-year to $4.41 billion, ahead of the $4.35 billion Wall Street was expecting.
But here's where it gets interesting: core earnings per share grew 26% year-over-year, outpacing that 14% sales growth. Core operating margin expanded by a hefty 390 basis points to 20.2%. That's the kind of margin expansion that makes investors happy—you're not just selling more stuff, you're making more money on each sale.
On a GAAP basis, revenue hit $4.22 billion, up 20% year-over-year, while net income more than doubled to $540 million from $310 million in the same quarter last year. Operating cash flow reached $1.05 billion, with adjusted free cash flow at $732 million.
The AI Connection Drives Optical Growth
The star performer was Optical Communications, where revenue surged 24% year-over-year to $1.70 billion. That's your AI infrastructure play right there—data centers need massive amounts of fiber optic connectivity to handle AI workloads, and Corning is cashing in.
The rest of the business showed more mixed results. Display sales, which include the glass for your screens, dipped 2% to $955 million. Specialty Materials—that's the premium glass for Apple (AAPL) devices—climbed 6% to $544 million. Automotive sales edged down 1% to $440 million, while Life Sciences slipped 2% to $246 million. The Hemlock and Emerging Growth Businesses segment jumped 62% to $526 million.
Springboard Plan Gets a Serious Upgrade
Management didn't just report good numbers—they completely revamped their growth targets. The company's Springboard plan, which maps out long-term revenue growth from a fourth-quarter 2023 baseline, just got supercharged.
Corning now expects to add $11 billion in incremental annualized sales by the end of 2028, up from the original $8 billion target. For 2026 specifically, projected incremental annualized sales were bumped to $6.5 billion from $6 billion. Perhaps most notably, the company's "high-confidence plan"—presumably the number they're really sure they can hit—jumped to $5.75 billion from the prior $4 billion estimate.
CEO Wendell P. Weeks put it this way: "We now have a highly profitable launch point for future growth. Excitingly, we have even stronger long-term growth ahead. Today, we are upgrading our original Springboard plan to now add $11 billion in incremental annualized sales by the end of 2028, up from our original $8-billion plan."
The Meta Deal That Changes Everything
That confidence boost didn't come from nowhere. On Tuesday, Corning announced a $6 billion agreement with Meta Platforms (META) to accelerate U.S. data center infrastructure for AI. That's billion with a B, and it's the kind of deal that reshapes a company's trajectory.
Under the agreement, Corning will supply Meta with its latest optical fiber, cable, and connectivity solutions specifically designed to meet the density and scale requirements of advanced AI data centers. Translation: as Meta builds out its AI computing infrastructure, Corning is providing the nervous system that connects it all.
Looking Ahead
For the first quarter, Corning expects core sales between $4.20 billion and $4.30 billion, above the Street estimate of $4.23 billion. Adjusted EPS is projected in the range of 66 to 70 cents, ahead of the 66-cent consensus.
Corning shares were down 1.06% at $108.58 Wednesday, though the stock remains near its 52-week high of $113.99. Sometimes good news gets priced in before the actual announcement.
