Corning Incorporated GLW reported a 20.2% core operating margin in the first quarter of 2026, up 220 basis points from the year-ago quarter. Since the launch of the Springboard plan in the fourth quarter of 2023, Corning has expanded its core operating margin by 390 basis points. Core gross margin expanded 120 basis points to 39.1%, while core EPS was up 30% year over year. This outpaced 18% year over year revenue growth, indicating strong operating leverage.
There are several factors driving this strong and consistent improvement in profitability. Optical Communications remains Corning’s biggest growth engine. Strong hyperscale data-center investments and growing demand for GenAI networking infrastructure led to a 36% year over year growth in revenue in this segment. Along with strong demand, productivity improvement across operations led to 93% growth in net income in this segment.
Its solar business is also scaling rapidly. Despite declining net income in recent quarters due to wafer-ramp inefficiencies and startup costs, the profitability in solar business is projected to improve in upcoming quarters. The company is steadily optimizing its portfolio and gradually shifting its focus towards higher-growth, higher-value products to enhance overall profitability.
How Are Competitors Faring?
Corning faces competition from Amphenol Corporation APH and Ciena Corporation CIEN. Despite acquisition-related costs, Amphenol generated an adjusted operating margin of 27.3% in the first quarter, expanding 380 basis points year over year. Communications Solutions remained the largest contributor. Amphenol generated net sales of $4.53 billion in the first quarter from this segment. The segment also produced an operating margin of 30.6%, pointing to strong mix and execution as demand accelerated in high-technology connectivity applications.
Ciena’s profitability improved sharply during the quarter. Adjusted gross margin expanded 390 basis points year over year to 44.9%, supported by a favorable product mix and operating execution. Adjusted operating margin increased to 19.5% from 8.2% in the prior-year period. Adjusted operating expenses were $397.8 million, up 7.7% year over year. Despite higher spending, Ciena generated substantial operating leverage as revenue growth significantly outpaced expense growth.
Corning's Price Performance, Valuation & Estimates
GLW’s shares have gained 305.1% compared to the communications components industry’s growth of 325.6%.
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From a valuation standpoint, the company’s shares currently trade at 57.3X forward 12-month earnings, higher than the industry.
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Earnings estimates for Corning for 2026 and 2027 have increased over the past 60 days.
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Corning currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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