GLW: Data Center Buildouts And Fiber Demand Will Support Robust Upside Potential

Analysts have raised their price target for Corning from $92.75 to $93.31. They cite continued improvements in revenue growth, profit margin, and robust demand in the Optical and Specialty Materials segments as key drivers for the upward revision.

Analyst Commentary

Recent Street research reflects a mix of optimism and lingering caution following Corning's latest financial and operational performance. Below, key bullish and bearish takeaways summarize the perspectives shaping analysts' price target revisions and stock recommendations.

• Bullish analysts continue to raise price targets, citing stronger than expected revenue in the Display and Specialty Materials segments as key contributors to growth momentum.
• There is broad confidence that the Optical and Solar businesses will benefit from increased demand, particularly as supply chain constraints are resolved. This is expected to support an extended growth trajectory through at least 2027.
• Margin expansion is expected to persist, especially amid elevated spending by hyperscalers and robust demand for connectivity solutions related to artificial intelligence applications.
• Expectations for continued data center buildouts and the ongoing transition from copper to fiber reinforce a favorable outlook for Corning's long-term growth and market share in networking solutions.

• Bearish analysts highlight that recent earnings beats are primarily driven by select segments, while growth in Optical has been more modest. This tempers enthusiasm around overall execution.
• Some caution that portions of Corning's valuation reflect best case scenarios in margin expansion and demand, leaving less room for error should market conditions change.
• Concerns remain regarding external risks such as fluctuations in petrochemical profits and input costs, which could affect performance in chemical-focused business lines.
• While demand growth is notable, a neutral tone from certain analysts suggests that risk and reward may be balanced amid sector-specific headwinds and lingering supply chain challenges.

What's in the News

• Corning has entered a joint development and investment agreement with Ensurge Micropower to commercialize ultra-high performance solid-state microbatteries. The agreement includes up to USD 15 million in total potential investment and engineering support, which may be converted into shares and warrants. (Key Developments)
• The company completed the repurchase of 48.54 million shares, representing 6.12% of outstanding shares, under its ongoing buyback program. A recent tranche cost $25.05 million. (Key Developments)
• Corning is collaborating with All Weather Group to bring thin quadruple-pane window units with Corning® Enlighten™ Glass to the Canadian market. This initiative aims to advance efficiency and sustainability standards for window systems. (Key Developments)
• Corning provided fourth quarter 2025 guidance, projecting core sales of approximately $4.35 billion and core EPS in the range of $0.68 to $0.72. (Key Developments)
• Multiple new strategic alliances were announced, including partnerships with QuantumScape on ceramic separators for solid-state batteries and with GlobalFoundries to develop detachable fiber connector solutions for silicon photonics platforms. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen slightly, increasing from $92.75 to $93.31.
• Discount Rate increased marginally from 8.73% to 8.75%, which reflects a modest adjustment in perceived risk.
• Revenue Growth forecast has risen, moving from 13.91% to 14.12% year over year.
• Net Profit Margin has edged higher and is now at 14.80%, compared to the previous 14.76%.
• Future P/E multiple has declined fractionally and is now at 31.41x compared to the previous 31.51x.