Corning Plunges 20% as Q3 Guidance Misses on Slowing Optical Growth
GLW has more than doubled off its 52-week low of $54.92.
Summary
Corning shares are down over 20% after the company forecast Q3 core sales of $4.9B-$5B and adjusted EPS of $0.85-$0.89, both below consensus. The miss is driven by slowing growth in its Optical Communications segment—up 32% this quarter versus 36% last quarter and 81% a year ago—and persistent headwinds in handheld glass from memory pricing and mid-teen volume declines. Additionally, capacity limits and a smartphone slump are weighing on the Q3 outlook. This follows a strong Q2 beat reported earlier today, but the guidance shortfall against lofty AI-driven expectations is wiping out $23.2B in market value. The optical fiber business remains the growth engine, but the deceleration raises questions about whether the AI infrastructure ramp is plateauing. Watch for management commentary on the earnings call regarding the trajectory of data-center demand and any updates to the long-term $30B sales target.
At the time of this announcement, GLW was trading at $114.82 on NYSE in the Technology sector, with a market capitalization of approximately $98.8B. The 52-week trading range was $54.92 to $271.78. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.