Corning (GLW) Q2 2026 earnings summary

Executive summary

• Q2 2026 core sales rose 17% year-over-year to $4.74 billion, with core EPS up 30% to $0.78, both above guidance, led by Optical Communications and Solar segments.

• Gross margin expanded 120 bps to 39.6%, operating margin up 190 bps to 20.9%, and ROIC up 180 bps to 14.9%.

• Free cash flow reached $1.42 billion, with Optical Communications and enterprise sales up 65% year-over-year; Solar segment sales up 90%.

• Major multi-year agreements and partnerships with Apple, Meta, NVIDIA, and Amazon underpin long-term growth and expanded U.S. manufacturing.

• Upgraded Springboard Plan targets annualized sales run rate of $20B by end of 2026, $30B by 2028, and $40B by 2030, with a projected 19% sales CAGR from Q4 2026 to Q4 2030.

Financial highlights

• Q2 2026 core net sales: $4.74B (+17% YoY); core EPS: $0.78 (+30% YoY); gross margin: 39.6% (+120 bps); operating margin: 20.9% (+190 bps); ROIC: 14.9% (+180 bps).

• Free cash flow: $1.42B; Optical Communications sales: $2.07B (+32% YoY), net income: $438M (+77% YoY).

• Enterprise sales: $1.27B (+65% YoY); solar sales: $438M (+90% YoY); Glass Innovations sales: $1.46B (+1% YoY).

• Automotive sales: $471M (+2% YoY), net income: $82M (+4% YoY); Life Sciences and Emerging Growth: $294M, net loss $21M.

• GAAP net income: $559M (+19% YoY); GAAP EPS: $0.64 (+19% YoY).

Outlook and guidance

• Q3 2026 core sales expected at $4.9B–$5.0B (+16% YoY); core EPS $0.85–$0.89 (+28% YoY).

• Sales CAGR of 19% projected from Q4 2026 to Q4 2030, with earnings growing faster than sales.

• CapEx to increase in H2 2026, with ~$2B investment for the year; tax rate ~18.5%.

• Solar segment ramp to contribute more significantly to earnings, targeting over $3B in revenue.

• Free cash flow expected to grow significantly year-over-year.