Corning (GLW) Q1 2026 earnings summary

Executive summary

• Q1 2026 core sales rose 18% year-over-year to $4.35 billion, with core EPS up 30% to $0.70 and operating margin expanding 220 basis points to 20.2%, driven by strong Optical Communications and Solar segment performance.

• Optical sales grew 36% to $1.85 billion and Solar sales surged 80% to $370 million year-over-year, with net income in Optical up 93%.

• Major long-term agreements were signed with Meta and two additional hyperscale customers, supporting robust demand in Optical and AI data center technologies.

• The Springboard Plan is being upgraded and extended through 2030, targeting $11 billion incremental annualized sales by 2028, with further details at the May 6 Investor Event.

• Eighth consecutive quarter of year-over-year growth, reflecting strong execution and innovation-driven demand.

Financial highlights

• Core gross margin expanded 120 basis points to 39.1%; core ROIC increased to 13.5%.

• Core net income was $612 million, up from $467 million in Q1 2025; GAAP net income was $408 million, more than doubling year-over-year.

• Adjusted free cash flow for Q1 was $188 million; operating cash flow was $362 million.

• Compared to Q4 2023, sales grew 33%, EPS rose 79%, and operating margin improved 390 basis points.

• Q2 2026 guidance: core sales expected to grow 14% year-over-year to ~$4.6 billion, core EPS to $0.73–$0.77.

Outlook and guidance

• Q2 forecast includes a $30 million additional expense for Solar wafer plant maintenance shutdown.

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

• Management anticipates continued growth and capacity expansion, aided by customer financial support and risk-sharing mechanisms.

• Upgraded and extended Springboard Plan to be detailed at May 6 Investor Event, with focus on GenAI and Photonics MAP.