Corning Targets $40 Billion in Sales by 2030 as Growth Accelerates

Corning Incorporated (NYSE: GLW ) shares are trading lower Tuesday, even after the company reported a strong third-quarter earnings beat and delivered results above analyst expectations. Adjusted EPS came in at 91 cents, beating the consensus estimate of 88 cents. Core sales increased 19% year over year (Y/Y) to $5.08 billion, topping expectations of $5.028 billion. The company reported its strongest sales growth since launching its Springboard Plan.

CEO Wendell P. Weeks said faster adoption of Optical Communications innovations helped double Gen AI sales Y/Y in the third quarter, outpacing GPU unit growth. CFO Ed Schlesinger added that long-term customer agreements are helping fund expansion as Corning works toward its 2030 growth targets. Core gross margin expanded 150 basis points to 40.5%, while core operating margin increased 310 basis points to 22.7%.

Operating cash flow reached $1.06 billion, and adjusted free cash flow totaled $661 million despite capital expenditures exceeding $500 million. Business Performance Optical Communications: Sales climbed 44% Y/Y to $2.38 billion, driven by 84% growth in Enterprise Networks and more than 100% growth in Gen AI product sales. Solar: Revenue grew 37% Y/Y as production ramped up, although the pace was slower than expected. Corning expects productivity gains to improve output and profitability, while U.S.

Section 232 trade measures support pricing and demand for domestic solar products. The company is targeting more than $3 billion in Solar revenue with above-average profitability. Carrier: Sales grew 4%, supported by data center interconnect (DCI) demand. Corning signed long-term fiber and connectivity agreements with Zayo, Verizon and AT&T.

Management estimates the DCI opportunity exceeds $1 billion. Glass Innovations: Sales fell 3% to $1.5 billion, while net income declined 10% to $328 million amid weak markets. TV unit sales dropped 4%, and notebook and handheld sales fell approximately 20%. Corning expects its Harrodsburg, Kentucky, facility to produce all cover glass for iPhones and Apple Watches sold worldwide by the end of 2026.

Automotive: Sales rose 4% as stronger demand for North American Class 8 trucks offset a 3% decline in light-duty vehicles. Net income slipped 1% to $67 million. Corning secured four long-term, multibillion-dollar customer agreements in the third quarter, including deals with Verizon and AT&T. These agreements support the company’s expansion plans and its efforts to capitalize on growing demand for fiber and connectivity solutions.

Fourth-Quarter and Long-Term Outlook For the fourth quarter, Corning expects adjusted EPS of $0.96—$1.00, above the consensus estimate of $0.94. Sales are projected at $5.2 billion—$5.3 billion, compared with the consensus estimate of $5.206 billion. The company expects core sales to increase approximately 19% Y/Y and core EPS to rise approximately 36% in the quarter. Corning expects its sales compound annual growth rate (CAGR) to accelerate to 19% from 2027 through 2030, compared with 15% during the first three years of its Springboard Plan.

Through the fourth quarter of 2026, management expects sales to have grown 60% and EPS to have increased more than 150%, while return on invested capital (ROIC) nearly doubles and full-year free cash flow more than triples. The company plans to grow EPS faster than sales, improve ROIC and increase free cash flow while continuing to invest in expansion. Targets $40 Billion in Sales by 2030 Under its Springboard Plan, Corning targets a $20 billion annualized sales run rate by the end of 2026. Third-quarter sales imply a run rate of approximately $20.3 billion, rising to about $21 billion based on the midpoint of fourth-quarter sales guidance of $5.25 billion.

The company aims to reach $30 billion in annualized sales by the end of 2028 and $40 billion by the end of 2030, doubling its $20 billion target. GLW Stock Price Activity: Corning shares are trading lower by 0.85% at $126.65 at the time of publication on Tuesday, according to Pro data. Read Also: Can Meta’s Fiber Partner Corning Capitalize On Rising AI Fiber Prices? Photo via Shutterstock