Key facts
- Corning's Q2 revenue was $4.74 billion, surpassing analyst estimates of $4.61 billion.
- The Optical Communications segment saw a 32% sales increase to $2.07 billion.
- The Solar segment's sales nearly doubled to $438 million, but it reported a quarterly loss.
- Corning anticipates Q3 core sales between $4.9 billion and $5.0 billion, with adjusted EPS of 85 to 89 cents.
- Corning announced new partnerships with Amazon and Nvidia to support AI infrastructure.
Corning shares fell more than 16% in premarket trading on Tuesday after the company issued a third-quarter sales forecast that fell slightly short of Wall Street expectations. This outlook was influenced by slower growth in its key fiber optics unit, a crucial component for data center development.
Despite the overall forecast, Corning noted that demand for products used in generative AI infrastructure continued to accelerate, helping to offset more muted growth in other business areas. The company's Optical Communications segment reported a 32% rise in sales to $2.07 billion, though this growth rate was lower than in previous periods and the year-earlier period. The Solar segment saw its sales nearly double to $438 million, but it incurred a quarterly loss due to maintenance and equipment upgrades, with profitability expected to improve in the third quarter.
Corning, a significant supplier to Apple, has faced headwinds from softer global smartphone demand, impacting its specialty glass products, particularly for displays. The company reported second-quarter revenue of $4.74 billion, exceeding analysts' estimates of $4.61 billion. In its efforts to bolster AI infrastructure, Corning expanded its partnerships with Amazon and Nvidia during the quarter. For the third quarter, Corning projected core sales between $4.9 billion and $5.0 billion, with adjusted earnings per share expected to be between 85 and 89 cents, indicating year-over-year growth of approximately 16% and 28%, respectively.