By Shares of Corning Inc. (NYSE: GLW) surged as much as 13% on Tuesday after the company reported second-quarter 2025 earnings that beat Wall Street estimates across the board.
The glass and materials manufacturer posted record sales and profits, driven primarily by a sharp rise in demand for optical communication products linked to the ongoing artificial intelligence (AI) infrastructure boom.
Record revenue and earnings beat analyst forecasts
Corning posted second-quarter sales of $3.86 billion, marking a 19% year-over-year increase and exceeding consensus estimates compiled by Visible Alpha.
Adjusted or hedged earnings per share (EPS) came in at $0.60, ahead of the Bloomberg consensus of $0.57 and Mizuho’s estimate of $0.58.
In terms of hedged financials, the company’s revenue reached $4.05 billion, surpassing Mizuho’s forecast of $3.9 billion.
The company’s GAAP EBITDA increased 14.6% quarter-over-quarter to $921 million, also ahead of expectations.
According to Corning’s release, the strong performance was driven in large part by a 41% surge in optical communications revenue to $1.57 billion, which significantly outpaced Street projections.
Optical enterprise sales, which account for more than half of Corning’s data center business, rose 9% quarter-over-quarter, highlighting the increasing demand for fiber optic cabling solutions as global investment in AI infrastructure accelerates.
Analysts react: price targets raised amid momentum
The Q2 report and positive outlook triggered a wave of bullish sentiment from Wall Street analysts.
Mizuho Securities raised its price target on Corning stock to $63 from $59, while maintaining an Outperform rating.
Mizuho highlighted the company’s above-consensus third-quarter guidance and robust quarterly growth as justification for the upward revision. For Q3, Corning guided to EPS of $0.65 (midpoint) and sales of $4.20 billion, both above Mizuho’s and Bloomberg’s forecasts.
Meanwhile, Citi reiterated a Buy rating and maintained a $60 price target, which the stock surpassed during Tuesday’s rally.
JPMorgan also maintains an Overweight rating, citing longer-term growth catalysts beyond the near-term AI tailwinds.
As of now, the consensus price target tracked by Visible Alpha sits around $58, though Tuesday’s 13% rally pushed Corning’s share price to $61.66, giving the company a market capitalization of $52.8 billion.
The stock has now returned approximately 33% year-to-date, outperforming the broader S&P 500.
Foldable iPhone could be long-term catalyst
Looking ahead, analysts are increasingly pointing to a potential foldable iPhone launch in 2026 as a key upside driver for Corning.
JPMorgan forecasts that Apple’s iPhone 18 lineup, expected in the fall of 2026, will include a foldable device that could significantly expand the total glass area used per unit.
The complexity and specialized requirements of foldable glass could favor Corning, which already supplies Apple with durable glass components.
If successful, the foldable iPhone could open up a substantial new revenue stream for Corning, particularly given the premium pricing and advanced glass technologies likely to be required for such a device.
While no analyst upgrades were reported immediately following the earnings release, the stock’s strong performance and growing optimism around its AI and consumer electronics exposure suggest Corning is well-positioned for continued gains in the near to medium term.
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