AnalystConsensusTarget updated the narrative for GLW

Analysts have raised Corning’s price target to $69.83 on strong Q3 guidance driven by robust AI infrastructure demand, expanding margins, and increased U.S. solar project exposure, despite elevated sector valuations.

Analyst Commentary

• Bullish analysts cite Corning's strong Q3 guidance, highlighting projected revenue growth of 13% year-over-year and EPS growth of 21% year-over-year, signaling robust operational momentum.
• Confidence in the company's ability to continue outperforming estimates is driven by ongoing AI infrastructure buildouts, specifically with GenAI clusters, and increased capital expenditure from carriers expanding fiber and connectivity infrastructure.
• Corning is seen as benefiting from increasing demand for domestic manufacturing, especially in capturing greater share in U.S. solar projects by offering cost-effective, high-content solutions to support energy transition efforts.
• Operating margin expansion, particularly with incremental margins exceeding 30%, and a favorable outlook from reduced tariff headwinds contribute to the positive sentiment.
• Some caution is expressed due to optical sector valuations trading at significant premiums to historical averages, amid a highly competitive landscape for AI and data center-related opportunities.

What's in the News

• Corning and Apple announced a major expansion of their partnership, with Apple committing $2.5 billion to ensure all iPhone and Apple Watch cover glass is produced at Corning’s Kentucky facility, creating the world’s largest smartphone glass production line and a new innovation center (Key Developments).
• Corning entered into a strategic commercial agreement with T1 Energy Inc., supplying hyper-pure polysilicon and solar wafers to strengthen the U.S. solar supply chain, with production and deliveries starting in the second half of 2026 (Key Developments).
• The White House signaled expanded price support for U.S. rare earths and critical minerals, holding a July 24 meeting with Corning, Apple, Microsoft, and rare earth companies to reduce reliance on Chinese sources (Reuters via periodicals).
• Corning provided strong earnings guidance, expecting high-end full-year net income of $900–$950 million and at least 25% margin; Q3 2025 guidance calls for double-digit growth with core sales of $4.2 billion and EPS in the $0.63–$0.67 range (Key Developments).
• Corning was removed from the Russell 1000 Defensive and Value-Defensive indices as of June 28, 2025 (Key Developments).

Valuation Changes

Summary of Valuation Changes for Corning

• The Consensus Analyst Price Target has risen slightly from $68.25 to $69.83.
• The Consensus Revenue Growth forecasts for Corning has risen slightly from 12.8% per annum to 13.4% per annum.
• The Net Profit Margin for Corning remained effectively unchanged, moving only marginally from 12.52% to 12.62%.