The company posted adjusted earnings of 60 cents per share, beating analyst estimates of 57 cents. Core sales rose 12% year-over-year to $4.04 billion, exceeding the $3.86 billion consensus.
Core EPS grew 28%, while adjusted free cash flow increased 28% to $451 million. The core operating margin expanded by 160 basis points to 19%.
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On a GAAP basis, Corning reported $3.86 billion in revenue, up from $3.25 billion a year ago, and net income of $469 million, compared with $104 million in the same quarter last year. The company said the difference between GAAP and core EPS primarily reflected mark-to-market adjustments on currency-related contracts and constant currency changes.
Optical Communications revenue rose 41% to $1.57 billion, driven by an 81% year-over-year increase in enterprise sales. Display sales declined 11% year over year to $898 million.
“Year over year, core sales grew 12% while core operating margin expanded 160 basis points to 19%, core EPS grew 28%, and core ROIC improved 210 basis points to 13.1%,” said Ed Schlesinger, executive vice president and chief financial officer. “Additionally, adjusted free cash flow grew 28% year-over-year to $451 million.”
Specialty Materials revenue climbed 9% to $545 million, while Automotive sales declined 4% to $460 million. Life Sciences held steady at $250 million. Hemlock and Emerging Growth Businesses’ revenue increased 31% to $326 million.
Operating cash flow for the quarter was $708 million, with adjusted free cash flow at $451 million, both up from the prior year.
Outlook
For the third quarter, Corning expects core sales of $4.2 billion, above the Street estimate of $4.01 billion, and adjusted EPS in the range of 63 to 67 cents, ahead of the 61-cent consensus.
Management anticipates continued strong performance under its Springboard plan, with double-digit year-over-year growth in both sales and earnings.
Guidance includes a $0.01 to $0.02 impact from tariffs and a $0.02 to $0.03 temporary cost increase associated with scaling production to meet demand for Gen AI and solar offerings.
Price Action: GLW shares are trading higher by 13.3% to $62.77 at last check Tuesday.
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