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Corning Shares Drop After Q2 Beat as Q3 Guidance Misses Elevated Expectations

The market focused on near-term factory limits and the timing of a roughly $2 billion capacity build that will determine how quickly AI orders convert to sales.

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Overview

  • Corning reported a second-quarter beat on July 28 with adjusted EPS of $0.78 and core revenue of $4.74 billion, driven by a 32% rise in Optical Communications.
  • The company forecast third-quarter core sales of $4.9 billion to $5.0 billion and adjusted EPS of $0.85 to $0.89, a midpoint that landed slightly below Wall Street expectations and prompted the share decline.
  • Management said customer demand for AI data‑center fiber and connectivity already exceeds current production capacity and highlighted new multiyear deals with Amazon and NVIDIA.
  • Corning is targeting about $2 billion of capital spending in 2026 and plans new U.S. plants, making the timing of factory ramps the main near‑term execution and revenue risk.
  • The results expose a mix of strong optical growth and offsetting headwinds from weaker smartphone volumes and a temporary solar maintenance loss, so investors will watch shipment conversion, margins, and the pace of factory ramp‑up next.