Corning shares soar after glassmaker scraps forecasts to boost generative AI

Key conclusions

Corning raised its outlook for the current quarter, citing demand for its optical connectivity products for generative AI applications.
The specialty glass maker expects earnings per share to be at or slightly above previous estimates and revenue to increase by $200 million.
The company expects profits and cash flow to increase.
Corning shares rose more than 9% on Monday morning, hitting their highest level since early 2022.

Corning (GLW) shares soared Monday as the specialty glass maker raised its outlook, citing growing demand for its products used in generative artificial intelligence (AI) applications.

The company now expects earnings per share (EPS) for the current quarter to be around $0.42-$0.46, or slightly higher than the previous guidance. It expects revenue to be around $3.6 billion, or $200 million higher than the previous estimate.

Corning shares rose more than 9% on Monday morning, hitting their highest level since early 2022.

Commercial View

Chief Executive Wendell Weeks said the gains were “primarily driven by strong adoption of our new optical connectivity products for Generative AI.” The results added confidence in Corning’s Springboard plan to grow annual sales by more than $3 billion over the next three years “as cyclical factors and secular trends converge,” he said.

Weeks said the company believes the first quarter will be the weakest this year and that it expects strong profit and cash flow growth as it “executes on its growth management strategy.”

The Corning, New York-based company plans to report second-quarter results on July 30, before markets open.