Corning drops 18% after softer third-quarter sales outlook despite Q2 beat

Second-quarter revenue and earnings topped estimates on AI-driven optical demand, but Corning’s $4.9 billion to $5.0 billion third-quarter core sales forecast trailed consensus and weighed on the stock.

Summary

Corning shares fell about 18% after the company reported stronger-than-expected second-quarter 2026 results but issued a third-quarter core sales outlook of $4.9 billion to $5.0 billion that was slightly below Wall Street expectations. Second-quarter revenue rose 17% year over year to $4.74 billion, above the $4.61 billion consensus estimate, while adjusted earnings per share increased 30% to $0.78, topping forecasts of $0.76. The company forecast third-quarter adjusted EPS of $0.85 to $0.89, with the midpoint modestly above the $0.85 consensus. Optical Communications revenue climbed 32% to $2.07 billion on demand tied to AI data centers and 5G, while Solar grew 90%; other businesses were weaker, including a 15% decline in Life Sciences and emerging growth businesses. The selloff also pressured other optical and AI infrastructure stocks, including Marvell, Lumentum, AXT and Coherent.

Terms & Concepts
  • Optical Communications: A business segment focused on fiber-optic products and networks used to transmit data for telecom and data center infrastructure.
  • adjusted earnings per share: A profit measure calculated per share that excludes certain items to show underlying operating performance.
  • hyperscalers: Largest cloud computing infrastructure companies