Corning Incorporated (GLW) is gearing up to report its third-quarter 2025 earnings on October 28, just before the market opens. The company has surprised analysts with a 4.73% earnings beat on average over the past four quarters, including a 5.26% surprise in the last reported quarter.
This quarter, Corning is expected to see year-over-year revenue growth, driven by strong demand in its Optical Communications and Specialty Materials segments. Notably, the booming solar market is providing a solid boost.
In a significant development during the quarter, Apple made headlines by committing $2.5 billion to manufacture all of its iPhone and Apple Watch cover glass at Corning’s facility in Kentucky. This move is in line with Apple’s broader $600 billion investment plan to support U.S. operations. Corning’s Kentucky plant is being revamped to accommodate Apple’s specifications, positioning the company as a key partner in the tech giant’s U.S. manufacturing efforts. This collaboration is poised to accelerate growth within Corning’s Specialty Materials segment.
On another front, Corning has teamed up with GlobalFoundries to develop a detachable fiber connector for GF’s silicon photonics platform. GlobalFoundries will use Corning's GlassBridge solution, a high-performance glass-waveguide-based edge-coupler, to meet the high bandwidth needs of AI-driven data centers.
In the telecom sector, Lumen is expanding its network to meet the rising demand driven by AI advancements. The company has turned to Corning for next-generation fiber optic cables, which are expected to fuel growth in Corning’s Optical Communications segment.
Additionally, Corning formed a strategic collaboration with T1 Energy to bolster the U.S. solar supply chain. This partnership aims to provide domestically sourced solar components, which should positively impact Corning’s earnings for the quarter.
For the third quarter, analysts project revenue of $4.21 billion for Corning, reflecting an increase from $3.73 billion a year ago. The company’s Specialty Materials segment is expected to generate $595.6 million, up 9.7% year-over-year, while the Display Technologies segment is forecast to reach $766.2 million, marking an 8.4% increase. The Optical Communications segment is anticipated to bring in $1.61 billion, up from $1.24 billion last year.
Despite these positive indicators, Corning’s Earnings ESP (Earnings Surprise Prediction) stands at +0.00%, meaning it’s unlikely the company will outperform earnings expectations this quarter. Corning currently holds a Zacks Rank of #2 (Buy), which reflects the company's overall strong outlook.
Other companies with potential for earnings surprises include Motorola Solutions, Inc. (MSI), which is set to report on October 30, and Qualcomm Technologies, Inc. (QCOM), expected to release results on November 5.
As for the semiconductor industry, there's a significant growth opportunity for niche players. A company specializing in semiconductor products that major players like NVIDIA don’t manufacture is well-positioned to capitalize on the expansion of AI, machine learning, and IoT. The global semiconductor market is projected to nearly double from $452 billion in 2021 to $971 billion by 2028, presenting a promising landscape for this emerging player.