0000024741-26-000205
SEC filingCorning delivered a strong Q1 2026 with 20% revenue growth to $4.14B, driven by Optical Communications and Solar, achieving GAAP EPS of $0.43.
Corning reported a strong first quarter for 2026. Consolidated net sales rose 20% year-over-year to $4,144 million from $3,452 million. Gross profit improved 26% to $1,528 million, with gross margin expanding to 37% from 35% in the prior year. Operating income increased to $639 million from $445 million, though the percentage change is not explicitly stated. Net income attributable to Corning grew to $371 million ($0.43 per share diluted) from $157 million ($0.18 per share). The company also reported core net sales of $4,345 million (up 18% YoY) and core net income of $612 million ($0.70 per share), which exclude certain items.
The revenue growth was led by Optical Communications (+36%) and Solar (+80%), while Glass Innovations grew modestly (+1%), Automotive declined slightly (-1%), and Life Sciences was flat. Segment profitability (segment net income) showed Optical Communications net income doubling to $387 million, Glass Innovations up 2% to $324 million, Automotive up 3% to $70 million, and Solar down 74% to $7 million due to temporarily higher ramp costs.
As of March 31, 2026, Corning had cash and cash equivalents of $1,755 million, up from $1,526 million at December 31, 2025. Total debt increased to $8,973 million from $8,434 million, primarily due to $427 million in new Chinese yuan-denominated short-term borrowings. The total debt-to-capital ratio was 42%, up from 41% at year-end 2025. Working capital improved to $3,610 million from $3,308 million. The company maintained its $1.5 billion revolving credit facility, which had no outstanding borrowings.
Net cash provided by operating activities was $362 million, more than double the $151 million in Q1 2025, driven by higher net income. Capital expenditures increased to $332 million from $208 million, reflecting investments in capacity expansion, particularly in Solar. The company received $8 million in CHIPS Act incentives. Financing activities provided $59 million versus a use of $403 million in the prior year, aided by $427 million in debt proceeds. Dividends paid were $244 million (consistent with the $0.28 per share quarterly rate). No shares were repurchased during the quarter.
Management highlighted demand for Generative AI products and fiber-to-home in Optical Communications, and growth in polysilicon and solar modules. The Springboard plan, which originally targeted $3 billion in incremental core sales by 2026, was achieved ahead of schedule and upgraded to $5.75 billion. For the second quarter of 2026, Corning expects core net sales of approximately $4.6 billion. Key risks include ongoing IRS tax audits for 2015-2020, unfavorable tax rulings in South Korea and Luxembourg, foreign exchange volatility, and trade tensions.
Corning revised its segment structure in Q1 2026, combining Display and Specialty Materials into Glass Innovations, and combining Hemlock Semiconductor, solar wafer, and solar module businesses into Solar. Life Sciences is no longer a reportable segment. The company uses constant-currency reporting for its largest segments. Share-based compensation expense increased to $115 million from $54 million due to a higher stock price. Restructuring, impairment, and other charges were $44 million in the current quarter, compared to a credit of $7 million in the prior year. An unfavorable tax ruling in South Korea resulted in a $92 million non-cash charge. The translated earnings contract loss was $16 million, significantly lower than the $101 million loss in Q1 2025. The company maintains a robust hedging program to manage foreign exchange exposure.