Corning (GLW) is now home to another massive fiber deal. On Sept. 8, Verizon (VZ) struck a multibillion-dollar supply agreement with Corning for more than 80 million miles of high-density optical fiber and connectivity solutions through 2032. Fiber not only supports Verizon's broadband initiative but is needed for the construction of the long-haul, low-latency network necessary to link artificial intelligence (AI) data centers.
The timing is particularly fortuitous for Corning. The company already has a multibillion-dollar deal in place with Amazon (AMZN), as well as an initiative tied to Nvidia's (NVDA) AI infrastructure construction. Simply put, Corning is gaining traction in several different layers of the network, both inside and outside AI data centers.
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About Corning Stock
Corning is a materials science corporation with its headquarters in Corning, New York. The company specializes in glass, ceramics, optical physics, and manufacturing. Corning offers its products in optical communications, mobile consumer electronics, displays, automotive, and other areas. Currently, Corning has a market capitalization of approximately $124 billion.
GLW stock currently trades near the $148 level. Although the stock is trading about 45% below its 52-week high of $271.78, shares still have appreciated about 70% year-to-date (YTD). This beats the S&P 500 Index ($SPX) over the same period, which has gained roughly 11% so far in 2026. GLW stock has also almost doubled from its 52-week low of $77.05.
www.barchart.com All this performance leaves Corning with a tough valuation profile. GLW stock trades at about 43.7 times forward earnings and 7.9 times sales. But there are some fundamental reasons behind this valuation premium, because Corning recently won another big customer. Indeed, the new agreement with Verizon comes after a multibillion-dollar contract with Amazon. The company also has a partnership with Nvidia for the expansion of U.S. optical connectivity manufacturing capacity by 10 times and fiber production capacity by more than 50%.
Corning pays a quarterly dividend of $0.28 per share, providing a yield of roughly 0.8% at the latest share price. The next dividend payment will be made on Sept. 29 to shareholders of record on Aug. 31.
Corning Beats on Earnings as AI Fiber Demand Accelerates
Corning reported a strong second quarter. Core sales rose 17% year-over-year (YOY) to $4.74 billion, while core EPS jumped 30% to $0.78. Earnings beat the $0.76 consensus estimate, while revenue came in above the $4.63 billion forecast. On a GAAP basis, sales were $4.51 billion, and GAAP EPS rose 19% to $0.64.
Of course, what matters even more for the AI investment thesis is that Optical Communications sales grew 32% YOY to $2.07 billion in Q2. Within that, Enterprise Networks revenue skyrocketed 65%, “with Gen AI product sales growing significantly faster.” Core operating margin expanded by 190 basis points to 20.9%, while adjusted free cash flow stood at $1.42 billion.
The momentum is expected to last. Corning issued guidance for Q3 core sales of $4.9 billion to $5 billion, marking a 16% YOY increase. Core EPS of $0.85 to $0.89 is also expected in Q3, marking 28% YOY growth. Analysts currently expect EPS of $0.88 in Q3, meaning that management's guidance range is in-line with Wall Street's estimates.
The more important part from the Q2 report, however, was the updated Springboard Plan. Management is targeting a sales run rate of $20 billion by the end of 2026, $30 billion by the end of 2028, and $40 billion by 2030. The Verizon agreement gives more credence to these targets. The deal differs from single data-center orders by covering both broadband and long-haul AI corridors, making Corning a player in the wider network buildout for the AI era.
What Do Analysts Expect for Corning Stock?
Wall Street is still quite bullish on Corning stock despite its premium valuation, assigning a consensus "Moderate Buy" rating overall. Recent analyst activity is mostly mixed around opportunity size and valuation, with several firms reiterating their targets on GLW stock after its rally in 2026.
The mean target for GLW stock is $188.20, while the highest target is $238 and the lowest target is $129 per share. The average price target of $188.20 implies potential upside of about 27% from current levels.
www.barchart.com On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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