Financial Data and Key Metrics Changes - For Q4 2025, sales increased by 14% year-over-year to $4.41 billion, and EPS grew by 26% to $0.72. Operating margin expanded by 170 basis points to 20.2%, and ROIC increased by 150 basis points to 14.2% [5][20][19] - For the full year 2025, sales grew by 13% to a record $16.4 billion, with EPS growing 29% to $2.52. Operating margin expanded by 180 basis points to 19.3%, and free cash flow reached $1.7 billion [20][19] Business Segment Data and Key Metrics Changes - **Optical Communications**: Q4 sales were $1.7 billion, up 24% year-over-year, with net income increasing by 57% to $305 million. For the full year, sales were $6.3 billion, up 35% year-over-year, driven by strong adoption of new Gen AI products [20][21] - **Display**: Q4 sales were $955 million, with net income of $257 million. For the full year, net income reached $993 million, exceeding the target range [21][22] - **Specialty Materials**: Q4 sales increased by 6% to $544 million, with net income up 22% to $99 million. For the full year, sales grew by 10% to $2.2 billion, and net income increased by 41% to $367 million [23] - **Automotive**: Q4 sales were $440 million, down slightly year-over-year, with a full-year decline of 3%. Net income for the full year was $63 million, up 7% [25] - **Life Sciences**: Full year sales were $972 million, consistent with the prior year, and net income was $61 million [25] - **Hemlock and Emerging Growth Businesses**: Q4 sales were $526 million, up 62% year-over-year, driven by growth in polysilicon and module sales for the solar industry [26] Market Data and Key Metrics Changes - The enterprise business within Optical Communications grew by 61% year-over-year, with hyperscale data center sales growing significantly faster [21] - The heavy-duty diesel market in North America and Europe remained weak, impacting the Automotive segment [25] Company Strategy and Development Direction - The company upgraded its Springboard plan to add $11 billion in incremental annualized sales by the end of 2028, up from the original $8 billion target [7][17] - A multi-year agreement with Meta, valued at up to $6 billion, aims to support Meta's AI ambitions and enhance domestic supply chains [9][10] - The company is focusing on organic growth opportunities and plans to invest significantly in capacity expansions, with a capital expenditure target of $1.7 billion for 2026 [31][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position entering 2026, citing strong demand for innovations and manufacturing capabilities [8][18] - The company expects year-over-year growth to accelerate in Q1 2026, with core sales projected to increase by approximately 15% [8][26] Other Important Information - The company celebrated its 175th anniversary, highlighting its long-standing history and commitment to innovation [18] - Ann Nicholson, the head of Investor Relations, announced her retirement after 40 years of service [34][35] Q&A Session Summary Question: Are similar long-term agreements with other major customers included in the Springboard plan? - Management indicated that these agreements are significant but have not yet been fully included in the Springboard plan as they are still being finalized [39] Question: Is the optical fiber market experiencing supply constraints? - Management believes there is enough fiber to meet demand but noted robust demand for new high-density products, leading to capacity expansions [41] Question: Will Meta disproportionately increase purchases after the agreement? - Management clarified that while Meta's agreement is significant, they are concluding similar agreements with other major customers, which will expand the overall market [48] Question: How will the Meta deal be accounted for? - The deal will be accounted for in the enterprise business, while sales to carriers will be recorded in the carrier business [58] Question: What is the expected CapEx for 2026? - The company plans to spend about $1.7 billion in CapEx, which includes investments related to the Meta project [60][67]

Financial Data and Key Metrics Changes - For Q4 2025, sales increased by 14% year-over-year to $4.41 billion, and EPS grew by 26% to $0.72 [5][20] - Operating margin expanded by 170 basis points to 20.2%, achieving the Springboard target a year early, and ROIC increased by 150 basis points to 14.2% [5][20] - For the full year 2025, sales grew by 13% to a record $16.4 billion, with EPS growing by 29% to $2.52 [20] Business Segment Data and Key Metrics Changes - In Optical Communications, Q4 sales were $1.7 billion, up 24% year-over-year, with net income increasing by 57% to $305 million [20][21] - Display segment sales for Q4 were $955 million, with net income of $257 million, exceeding targets for the year [21][22] - Specialty Materials saw Q4 sales rise by 6% to $544 million, with net income up 22% to $99 million [23] - Automotive segment sales were $440 million, down slightly year-over-year, while net income for the full year was up 3% [25] Market Data and Key Metrics Changes - The enterprise business within Optical Communications grew by 61% year-over-year, with hyperscale data center sales growing significantly faster [21] - The carrier networks business saw a 15% increase in sales for the full year, primarily driven by interconnect data centers [21] Company Strategy and Development Direction - The company upgraded its Springboard plan to add $11 billion in incremental annualized sales by the end of 2028, up from the original $8 billion target [7][17] - A multi-year agreement with Meta worth up to $6 billion was announced to support AI ambitions, reflecting a commitment to U.S. manufacturing and innovation [9][10] - The company aims to enhance profitability and cash generation while pursuing organic growth opportunities [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving accelerated growth in Q1 2026, with core sales expected to rise by approximately 15% [8][26] - The company anticipates significant growth in the Optical Communications segment, supported by recent customer agreements [21][24] - Management noted that the financial profile has transformed significantly over the past two years, establishing a strong base for future growth [28][33] Other Important Information - The company plans to spend about $1.7 billion in capital expenditures for 2026, which is above the depreciation level [60][62] - The head of Investor Relations, Anne Nicholson, announced her retirement after 40 years of service [34][35] Q&A Session Summary Question: Are similar long-term agreements with other major customers included in the Springboard plan? - Management indicated that these agreements are significant but have not yet been fully included in the Springboard plan as they are still being finalized [39][40] Question: Is the optical fiber market experiencing supply constraints? - Management stated that there is enough fiber globally to meet demand, but they are expanding capacity for new high-density products due to robust demand [41][42] Question: Will Meta disproportionately increase purchases after the agreement? - Management clarified that while Meta's agreement is significant, they are concluding similar agreements with other major customers, which will expand the overall market [48][50] Question: How will the Meta deal be accounted for? - The deal will be accounted for in the enterprise business, while sales to carriers will be recorded in the carrier business [58] Question: What is the expected CapEx for 2026? - The company plans to spend about $1.7 billion in CapEx, which includes investments related to the Meta deal [60][67]

Full-Year 2025 Investor Call Corning Reports Fourth-Quarter and Full-Year 2025 Financial Results January 28, 2026 Forward-Looking and Cautionary Statements The statements contained in this presentation and related comments by management that are not historical facts or information and contain words such as "will," "believe," "anticipate," "expect," "intend," "plan," "seek," "see," "would," "target," "estimate," "forecast" or similar expressions are forward-looking statements. These forward-looking statement ...

Financial Data and Key Metrics Changes - For Q3 2025, sales increased by 14% year-over-year to $4.27 billion, while EPS grew by 24% to $0.67, outpacing sales growth [4][20] - Operating margin expanded by 130 basis points to 19.6%, and ROIC increased by 160 basis points to 13.4% [4][20] - Free cash flow reached $535 million, indicating strong cash flow growth [4][20] Business Line Data and Key Metrics Changes - Optical Communications sales grew by 33% year-over-year to $1.65 billion, with enterprise networks business growing by 58% [21][22] - Display sales were $939 million, with net income of $250 million, both slightly up from the previous quarter [24] - Specialty Materials sales increased by 13% year-over-year to $621 million, driven by premium glass innovations [26] - Automotive sales were $454 million, up 6% year-over-year, primarily due to a stronger light-duty vehicle market in China [27] - Solar segment sales increased by 46% year-over-year, driven by additional polysilicon capacity coming online [29] Market Data and Key Metrics Changes - The enterprise business sales for Q3 2025 were $831 million, annualized to $3.3 billion, reflecting a $2 billion increase compared to 2023 [22] - The carrier networks business also saw year-over-year growth, with expectations of reaching a billion-dollar opportunity by the end of the decade [23] Company Strategy and Development Direction - The company is executing its Springboard plan, which aims to significantly increase sales and improve profitability, with a target operating margin of 20% by the end of 2026 [4][7] - The company is focusing on innovations in GenAI and expanding its manufacturing capabilities to meet growing demand [9][10] - The solar business is expected to build a $2.5 billion revenue stream by 2028, with a strong foundation already established [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the Springboard operating margin target a year ahead of schedule, indicating strong sales growth and profitability [30][34] - The company anticipates continued demand for its innovations, particularly in the AI and solar sectors, which are expected to drive future growth [10][18] Other Important Information - The company has committed customers for more than 80% of its solar capacity for the next five years, indicating strong demand [16][18] - The company plans to invest approximately $1.3 billion in CapEx in 2025, focusing on organic growth opportunities [31][32] Q&A Session Summary Question: Inquiry about optical sales growth and timing effects - Management noted that the data center business has seen significant growth, with a current run rate of $3.3 billion, and expects this growth to continue [39][40] Question: Operating margin expectations beyond Q4 - Management indicated that while ramp costs are currently impacting margins, they expect to see improvements as production scales up [48][49] Question: Impact of downstream solar inventory on ramp - Management acknowledged that while there is a demand for U.S. origin products, the overall industry dynamics do not significantly impact their position as a preferred supplier [54][55] Question: Optical Communications supply constraints - Management confirmed that demand for their products is tight, and they are in discussions with customers to manage capacity and investments [68][69] Question: Long-term revenue opportunities and Springboard plan updates - Management indicated that they will provide updates on the Springboard plan as they continue to perform well and assess future growth opportunities [88][89]

Financial Data and Key Metrics Changes - For Q3 2025, sales increased by 14% year-over-year to $4.27 billion, while EPS grew by 24% to $0.67, outpacing sales growth [4][19] - Operating margin expanded by 130 basis points to 19.6%, and ROIC increased by 160 basis points to 13.4% [4][19] - Free cash flow reached $535 million, indicating strong cash generation capabilities [4][19] Business Line Data and Key Metrics Changes - **Optical Communications**: Sales grew by 33% year-over-year to $1.65 billion, with enterprise networks business sales increasing by 58% [20][22] - **Display**: Q3 sales were $939 million, with net income of $250 million, both slightly up from the previous quarter [22] - **Specialty Materials**: Sales increased by 13% year-over-year to $621 million, driven by premium glass innovations [24] - **Automotive**: Sales were $454 million, up 6% year-over-year, primarily due to a stronger light-duty vehicle market in China [25] - **Solar Business**: Segment sales increased by 46% year-over-year, driven by additional polysilicon capacity coming online [26] Market Data and Key Metrics Changes - The enterprise business for Optical Communications is expected to grow at a CAGR of 30% from 2023 to 2027, with Q3 2025 sales annualized at $3.3 billion [20] - The carrier networks business is anticipated to become a billion-dollar opportunity by the end of the decade [21] Company Strategy and Development Direction - The company is executing its Springboard plan, which aims to significantly increase sales and improve profitability, with a target operating margin of 20% by the end of 2026 [6][28] - The company is focusing on expanding its presence in the solar industry, aiming for a $2.5 billion revenue stream by 2028 [17][26] - The partnership with Apple for Mobile Consumer Electronics is expected to create long-term growth opportunities [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the Springboard operating margin target a year ahead of schedule, indicating strong operational performance [28][32] - The company anticipates continued demand for its innovations, particularly in GenAI and solar sectors, which are expected to drive future growth [9][12][17] Other Important Information - The company has committed customers for over 80% of its solar capacity for the next five years, indicating strong demand [17][26] - The company plans to invest approximately $1.3 billion in CapEx in 2025 to support growth initiatives [29][30] Q&A Session Summary Question: On the optical sales growth expectations - Management noted that the data center business has seen significant growth, with a current run rate of $3.3 billion, and expects this growth to continue [35][36] Question: Regarding operating margin expectations beyond Q4 - Management indicated that while ramp costs are currently impacting margins, they expect to see improvements as production scales up [44][46] Question: Impact of downstream inventory on solar ramp - Management confirmed that while there was a large amount of inventory brought into the U.S., their focus remains on U.S. origin products, which positions them favorably [52][53] Question: Headroom for margins in Optical Communications - Management expressed optimism about continued margin improvements driven by innovation and capacity additions [55][58] Question: Long-term revenue opportunities and Springboard plan updates - Management acknowledged the need for an update on the Springboard plan due to strong performance and indicated that they would provide more details in the future [78][79]

Third Quarter 2025 Performance - Core sales reached $427 billion, a 14% increase year-over-year[13] - Core operating margin was 196%, a 130 basis points increase year-over-year[13] - Core EPS was $067, a 24% increase year-over-year[13] - Optical Communications sales increased by 33% year-over-year to $1652 billion, with net income up 69% to $295 million[50,89] - Hemlock and Emerging Growth Businesses sales increased by 46% year-over-year to $364 million[64] Springboard Plan & Future Outlook - The company added $4 billion to the annualized sales run rate since launching the Springboard plan in Q4 2023, a 31% growth[17,15] - The company expects Q4 2025 core sales of approximately $435 billion and core EPS between $068 and $072[66] - The company anticipates spending approximately $13 billion in capital expenditures in 2025[70] - The company plans to build the solar business into a $25 billion revenue stream by 2028[42,64] Strategic Initiatives - Apple committed $25 billion to manufacturing 100% of iPhone and Apple Watch cover glass in the US, with Corning's Harrodsburg, Kentucky plant becoming the largest smartphone glass production line[32] - The company expects the Gen AI data center interconnect opportunity to reach $1 billion by the end of the decade[37,50]

Q2 2025 Financial Performance - Core sales reached $405 billion, a 12% increase year-over-year (YoY)[13] - Operating margin was 190%, a 160 basis points increase YoY[13] - Core EPS was $060, a 28% increase YoY[13] - Optical Communications segment net sales increased by 41% YoY to $157 billion, with net income up 73% YoY to $247 million[46] - Hemlock and Emerging Growth Businesses net sales increased by 31% YoY to $326 million, but experienced a net loss of $10 million[60] Springboard Plan & Future Outlook - The company grew sales 24% since Q4 2023, adding over $3 billion to the annualized sales run rate[17] - The company expects Q3 2025 core sales to be approximately $42 billion and core EPS to be between $063 and $067[41] - The company anticipates approximately $13 billion in capital investments for 2025[61] Growth Opportunities - Enterprise Network sales increased by 81% YoY, driven by network scale-out[28,46] - The company expects to triple its solar sales run rate by 2027, adding $16 billion of new annualized revenue[32]

Core Viewpoint - Corning Incorporated aims to accelerate revenue and earnings growth through its Springboard plan, targeting over $3 billion in incremental annualized sales by the end of 2026 [3]. Group 1: Financial Performance and Strategy - The company has the necessary production capacity and technical capabilities to achieve the projected sales growth, with costs and capital already reflected in its financials [4]. - Corning expects to generate significant incremental profit and cash flow, leading to earnings growth that outpaces sales growth [4]. - The company has initiated share buybacks as a demonstration of confidence in its growth plan [4].

Q1 2025 Financial Performance - Corning reported Q1 2025 core sales of $3.7 billion, a 13% year-over-year increase[15] - The company's Q1 2025 core EPS was $0.54, a 42% year-over-year increase[15] - Q1 2025 gross margin was 37.9%, a 110 bps increase year-over-year[15] - Optical Communications segment sales were $1.36 billion, up 46% year-over-year, with net income of $201 million, up 101% year-over-year[49] - Display segment sales were $905 million, up 4% year-over-year, with net income of $243 million, up 21% year-over-year[50] - Specialty Materials segment sales were $501 million, up 10% year-over-year, with net income of $74 million, up 68% year-over-year[51] Outlook and Strategy - Corning expects Q2 2025 core sales to be approximately $3.85 billion and core EPS to be in the range of $0.55 to $0.59[46] - The company is reiterating confidence in its ability to deliver a $4 billion+ high-confidence Springboard plan[19] - Corning anticipates investing approximately $1.3 billion on capital expenditures in 2025[56] Tariffs Impact - The direct financial impact of existing tariffs is estimated to be approximately $0.01-$0.02 impact in Q2[17] - The company expects the direct impact of currently enacted tariffs to be ~$10 million-$15 million or $0.01-$0.02 for Q2[28]