Corning (GLW) investor relations material

Executive summary

• Q1 2026 core sales rose 18% year-over-year to $4.35B, with core EPS up 30% to $0.70 and operating margin expanding 220 bps to 20.2%.

• Robust growth in Optical Communications (sales up 36%) and solar (sales up 80%) drove performance, supported by strong Gen AI demand.

• Secured two new hyperscale customer agreements, including a multiyear, up-to-$6B Meta deal, underpinning future growth.

• Springboard plan upgraded, targeting $11B incremental annualized sales by 2028, with extension through 2030 and new Photonics Market-Access Platform for Gen AI OEMs.

• Segment reporting updated: solar now a standalone segment, display and specialty materials combined as Glass Innovations.

Financial highlights

• Q1 2026 core sales: $4.35B, up 18% year-over-year; core EPS: $0.70, up 30% year-over-year.

• Core operating margin: 20.2% (+220 bps); core gross margin: 39.1% (+120 bps); ROIC: 13.5% (+190 bps).

• Adjusted free cash flow: $188M in Q1.

• Q1 2026 core net income: $612M, up from $467M in Q1 2025.

• Compared to Q4 2023, sales grew 33%, EPS 79%, operating margin +390 bps, ROIC +470 bps.

Outlook and guidance

• Q2 2026 core sales expected to grow 14% year-over-year to ~$4.6B; core EPS guidance: $0.73–$0.77 (+25% year-over-year).

• Full-year 2026 operating expenses projected at ~$3.4B, capital expenditures at ~$1.7B, and tax rate at ~19%.

• Solar wafer plant maintenance in Q2 to add $30M in expenses; sequential improvement expected post-shutdown.

• Springboard plan to be upgraded and extended through 2030 at May 6 investor event.

• Full-year outlook: significantly higher free cash flow, continued investment in growth, aided by customer financial support.