Corning's Optical Fiber Business Experiences Rapid Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy GLW?
Source: Fool
- Fiber Product Innovation: Corning's newly launched Multicore Fiber (MCF) increases fiber density to four times that of traditional single-core solutions, providing significant advantages in transmission speed and cost, which is expected to accelerate the industry's shift to fiber optics.
- Significant Revenue Growth: In 2025, Corning achieved core revenue of $16.4 billion, a 13% year-over-year increase, with its optical communications segment contributing $6.2 billion, growing at a robust 35%, indicating strong demand for fiber optics from the AI sector.
- Enhanced Profitability: Corning's adjusted net income grew by 29% year-over-year to $2.2 billion, with the optical communications segment alone contributing $1 billion in profit, as surging demand provided significant pricing power, thereby boosting margins.
- Long-Term Market Potential: Corning plans to add $11 billion in annualized revenue by 2028, with $6.5 billion expected before the end of 2026, as the CEO believes the data center fiber market could triple in the long term due to AI demand, attracting long-term investors' interest.
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Analyst Views on GLW
Wall Street analysts forecast GLW stock price to fall
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 166.080
Low
83.00
Averages
99.00
High
110.00
Current: 166.080
Low
83.00
Averages
99.00
High
110.00
About GLW
Corning Incorporated operates as an innovator in materials science. Its segments include Optical Communications, Display, Specialty Materials, Automotive, and Life Sciences. Its Optical Communications segment manufactures carrier network and enterprise network components for the telecommunications industry. Its Display segment manufactures glass substrates for flat-panel displays, including liquid crystal displays and organic light-emitting diodes. Its Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics and crystals, precision metrology instruments and software for customer needs. Its Automotive segment manufactures ceramic substrates and filter products for emissions control systems in mobile applications as well as technical glass and optic products and solutions for the interior and exterior of vehicles. Its Life Sciences segment develops, manufactures, and supplies laboratory products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Fabrinet Rating Adjustment: Fabrinet's rating was also downgraded to Neutral due to increased volatility in near-term customer demand and limited visibility into upcoming ramps with new clients, which analysts believe will restrict short-term upside in the stock price.
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