Corning Announces Strong First-Quarter 2025 Financial Results(1) and Reiterates Confidence in Springboard Plan

Q1 results exceeded guidance, with core sales up 13% year over year to $3.7 billion and core EPS up 42% year over year to $0.54; core operating margin expanded 250 basis points year over year to 18%

Enterprise sales grew 106% on continued strong demand for new products for Gen AI, showing strong progress on 2023-2027 30% sales CAGR

Company is accelerating ramp of its U.S. advanced manufacturing assets to meet strong demand for U.S.-made solar products

For the second quarter, management expects continued strong year-over-year growth, with core sales of approximately $3.85 billion, and core EPS again growing significantly faster than sales to a range of $0.55 to $0.59

(1) First-quarter GAAP results: Sales were $3.45 billion, EPS was $0.18, and operating margin was 12.9%. First-quarter core results: Sales were $3.7 billion, EPS was $0.54, and operating margin was 18%.

Corning Incorporated (NYSE: GLW) today announced its first-quarter 2025 results and provided its outlook for second-quarter 2025.

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Wendell P. Weeks, chairman and chief executive officer, said, “Today, we announced strong first-quarter results that exceeded guidance. Core sales grew 13% year over year and core EPS grew three times faster. In Optical Communications, sales in our Enterprise business were up 106% year over year on continued strong demand for our new products for Gen AI.”

Weeks continued, “We remain confident in our ability to deliver our Springboard plan. We’re well positioned to maintain momentum despite a dynamic external environment because our growth is underpinned by powerful secular trends that are underway today. For example, we’re seeing remarkable customer response to both our innovations for Gen AI data centers and our U.S.-made solar products, and we are accelerating our production ramps for both.”

Ed Schlesinger, executive vice president and chief financial officer, said, “In the first quarter, we continued to improve our return profile. Year over year, core sales grew 13%, core EPS was up 42%, and we expanded operating margin 250 basis points and core ROIC 300 basis points. Our momentum is strong. In the second quarter, we expect to grow core sales to approximately $3.85 billion and to again grow core EPS significantly faster than sales to a range of $0.55 to $0.59. Our guidance factors in about $0.01 to $0.02 for the impact of currently enacted tariffs, along with $0.03 of temporarily higher cost as we ramp to meet increased demand for our Gen AI and solar products.”

First-Quarter 2025 Financial Highlights:

• GAAP sales were $3.45 billion. Core sales were $3.68 billion.
• GAAP EPS was $0.18. Core EPS was $0.54. The difference between GAAP and core EPS primarily reflected mainly non-cash, mark-to-market adjustments associated with the company’s translated earnings contracts and Japanese-yen-denominated debt and also reflected constant currency adjustments.
• GAAP gross margin was 35.2%. Core gross margin was 37.9%, reflecting 180-basis-point and 110-basis-point year-over-year improvements, respectively.

Second-Quarter 2025 Outlook:

• In the second quarter, management expects core sales of approximately $3.85 billion and core EPS to again grow significantly faster than sales to a range of $0.55 to $0.59; the guidance factors $0.01 to $0.02 for currently enacted tariffs, along with $0.03 of temporarily higher costs associated with production ramps to meet increased demand for Gen AI and solar products.

First-Quarter 2025 Results and Comparisons

(In millions, except per-share amounts)

First-Quarter 2025 Segment Results

(In millions)

The first-quarter results below are prepared on a basis consistent with Corning’s segment reporting as presented in the company’s consolidated financial statements.

In Optical Communications, first-quarter sales were $1.36 billion, up 46% year over year, primarily driven by continued strong adoption of Corning’s new Gen AI products in the Enterprise portion of the business, which was up 106%. First-quarter net income was $201 million, up 101% year over year, driven by strong incremental profit on the higher volume.

In Display, first-quarter sales were $905 million, up 4% year over year, driven by volume and price increases. Net income was $243 million. Beginning in the first quarter, the company changed the Japanese yen constant-currency rate to 120 yen from 107 yen, to align with its new hedging instrument rates. Prior-year results are not recast and remain at 107 yen.

In Specialty Materials, first-quarter sales were $501 million, up 10% year over year, driven by continued strong demand for premium glass for mobile devices. Net income was $74 million, up 68% year over year.

In Automotive, first-quarter sales were $440 million, and net income was $68 million, both consistent with the previous quarter, primarily reflecting continued softness in European and North American light- and heavy-duty markets. As of Jan. 1, 2025, the company moved its Automotive Glass Solutions business out of Hemlock and Emerging Growth Businesses to be managed along with Environmental Technologies in a newly formed Automotive segment. Prior-period results have been recast for comparison purposes.

In Life Sciences, first-quarter sales were $234 million, down 1% year over year. Net income was $13 million.

In Hemlock and Emerging Growth Businesses, first-quarter sales were $244 million, reflecting normal seasonality. As of Jan. 1, 2025, the company moved its Automotive Glass Solutions business out of Hemlock and Emerging Growth Businesses to be managed along with Environmental Technologies in a newly formed Automotive segment. Prior-period results have been recast for comparison purposes.

Upcoming Investor Events

Corning will attend the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference on May 14. Additionally, Corning will be scheduling management visits to investor offices in select cities. Visit the company’s Investor Relations website for up-to-date information.

First-Quarter Conference Call Information

The company will host its first-quarter conference call on Tuesday, April 29, at 8:30 a.m. EDT. To participate, individuals may preregister here prior to the start of the call. Once the required fields are completed, click “Register.” A telephone number and PIN will be auto generated and will pop up on screen. Participants will have the choice to “Dial In” or have the system “Call Me.” A confirmation email will also be sent with specific dial-in information. To listen to a live audio webcast of the call, go to the company’s Investor Relations events page and follow the instructions.

Presentation of Information in this News Release

This news release includes non-GAAP financial measures. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP. Corning’s non-GAAP financial measures exclude the impact of items that are driven by general economic conditions and events that do not reflect the underlying fundamentals and trends in the company’s operations. The company believes presenting non-GAAP financial measures assists in analyzing financial performance without the impact of items that may obscure trends in the company’s underlying performance. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found on the company’s website by going to the Investor Relations page and clicking “Quarterly Results” under the “Financials and Filings” tab. These reconciliations also accompany this news release.

With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control. As a result, management is unable to provide outlook information on a GAAP basis.

Caution Concerning Forward-Looking Statements

The statements contained in this release and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” “target,” “estimate,” “forecast” or similar expressions are forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include estimates and assumptions related to economic, competitive and legislative developments. Such statements relate to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements relate to, among other things, the Company’s Springboard plan, the company’s future operating performance, the company’s share of new and existing markets, the company’s revenue and earnings growth rates, the company’s ability to innovate and commercialize new products, the company’s expected capital expenditure and the company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company’s manufacturing capacity.

Although the company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, current estimates and forecasts, general economic conditions, its knowledge of its business and key performance indicators that impact the company, there can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws.

Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to: global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries, and related impacts on our businesses’ global supply chains and strategies; changes in macroeconomic and market conditions and market volatility, including developments and volatility arising from health crisis events, inflation, interest rates, the value of securities and other financial assets, precious metals, oil, natural gas, raw materials and other commodity prices and exchange rates (particularly between the U.S. dollar and the Japanese yen, New Taiwan dollar, euro, Chinese yuan, South Korean won and Mexican peso), decreases or sudden increases of consumer demand, and the impact of such changes and volatility on our financial position and businesses; the availability of or adverse changes relating to government grants, tax credits or other government incentives; the duration and severity of health crisis events, such as an epidemic or pandemic, and its impact across our businesses on demand, personnel, operations, our global supply chains and stock price; possible disruption in commercial activities or our supply chain due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, international trade disputes or major health concerns; loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; ability to enforce patents and protect intellectual property and trade secrets; disruption to Corning’s, our suppliers’ and manufacturers’ supply chain, equipment, facilities, IT systems or operations; product demand and industry capacity; competitive products and pricing; availability and costs of critical components, materials, equipment, natural resources and utilities; new product development and commercialization; order activity and demand from major customers; the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; the amount and timing of any future dividends; the effects of acquisitions, dispositions and other similar transactions; the effect of regulatory and legal developments; ability to pace capital spending to anticipated levels of customer demand; our ability to increase margins through implementation of operational changes, pricing actions and cost reduction measures; rate of technology change; adverse litigation; product and component performance issues; retention of key personnel; customer ability to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; loss of significant customers; changes in tax laws, regulations and international tax standards; the impacts of audits by taxing authorities; the potential impact of legislation, government regulations, and other government action and investigations; and other risks detailed in Corning’s SEC filings.

For a complete listing of risks and other factors, please reference the risk factors and forward-looking statements described in our annual reports on Form 10-K and quarterly reports on Form 10-Q.

Web Disclosure

In accordance with guidance provided by the SEC regarding the use of company websites and social media channels to disclose material information, Corning Incorporated (“Corning”) wishes to notify investors, media, and other interested parties that it uses its website (https://www.corning.com/worldwide/en/about-us/news-events.html) to publish important information about the company, including information that may be deemed material to investors, or supplemental to information contained in this or other press releases. The list of websites and social media channels that the company uses may be updated on Corning’s media and website from time to time. Corning encourages investors, media, and other interested parties to review the information Corning may publish through its website and social media channels as described above, in addition to the company’s SEC filings, press releases, conference calls, and webcasts.

About Corning Incorporated

Corning (www.corning.com) is one of the world’s leading innovators in materials science, with a 170-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning’s capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping its customers capture new opportunities in dynamic industries. Today, Corning’s markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences.

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