Corning (GLW): Evaluating Valuation After Securing Major U.S. Solar Deal With T1 Energy

Corning (GLW) just inked a strategic deal with T1 Energy Inc. that has investors sitting up and taking notice. The agreement positions Corning as a cornerstone supplier to the U.S. solar supply chain, with its hyper-pure polysilicon and solar wafers headed from Michigan to T1’s new Austin facility starting in 2026. This partnership is more than just another contract; it links Corning directly to the national push for faster, affordable energy solutions at a time when electricity demand is being fueled by both the AI boom and a desire for energy independence.

This new alliance comes during a year of growing momentum for Corning’s stock. The shares have climbed nearly 60% over the past twelve months and are up 41% since the start of the year, showing a sharp rebound in investor sentiment. Outside of today’s solar announcement, Corning has also reported double-digit annual revenue and net income growth, adding more strength to its longer-term performance. The market is clearly dialing up expectations as Corning expands into key sectors like renewables.

With such a strong run and this commercial catalyst on the table, is Corning now trading at a premium, or could this be an entry point before the market fully reflects its solar ambitions?

Most Popular Narrative: 3.6% Undervalued

According to community narrative, Corning is currently seen as modestly undervalued relative to analyst fair value estimates. The consensus sees upside potential, hinging on ambitious operational and financial milestones in the next few years.

“Corning's Springboard plan aims to add more than $4 billion in annualized sales by 2026, driven by strong demand in Optical Communications and Solar sectors due to powerful secular trends. This is expected to positively impact revenue growth. The company sees substantial growth in Optical Communications, particularly from innovations for Gen AI data centers. These advancements are expected to drive incremental revenue and accelerate operating margin improvements toward 20% by the end of 2026.”

Curious about the factors behind Corning's value outlook? A detailed roadmap supports this price target with ambitious growth goals and significant sector investments. Are you interested in the assumptions surrounding future margins and demand for advanced technology at the heart of these projections? Explore how analysts use these variables to inform their valuation models.

Result: Fair Value of $68.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, uncertainties remain, as trade tensions or slowing demand for Gen AI and solar could quickly dampen Corning’s ambitious growth outlook.

Find out about the key risks to this Corning narrative.

Another View: Testing the Story With the SWS DCF Model

While the analyst consensus relies on future profits and market excitement, the SWS DCF model takes a stricter approach and points in the opposite direction. This model currently finds Corning overvalued. Could the market be overestimating its solar potential?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Corning for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Corning Narrative

If you want a different perspective or enjoy conducting your own analysis, you can quickly build your own Corning narrative based on the data. Why not do it your way?

A great starting point for your Corning research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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