Corning Delivers Outstanding Third-Quarter Results
Corning Incorporated (NYSE: GLW) today announced third-quarter 2026 results that exceeded guidance and provided its outlook for fourth-quarter 2026.
• Corning grew third-quarter core sales 19% year over year to $5.08 billion – the strongest growth since the launch of Springboard – and grew core EPS nearly twice as fast to $0.91.
• Optical Communications continued to drive powerful growth, with Q3 sales up 44% to $2.38 billion; Enterprise Networks grew sales 84%, with Gen AI product sales growing more than 100% year over year.
• Solar grew sales 37% year over year, as production continued to ramp, albeit at a slower pace than anticipated. As productivity continues to improve, so will output and profitability. Additionally, in Q3, U.S. trade action under Section 232 of the Trade Expansion Act of 1962 improves the overall pricing environment and demand for U.S.-made solar products. Overall, the company is making solid progress building a more than $3 billion Solar revenue stream.
• Glass Innovations continued to successfully execute its “More Corning” content strategy, driving adoption of Corning innovations and outperforming TV unit, notebook, and smartphone markets, which have been impacted by memory pricing.
• In the fourth quarter, management expects to grow core sales approximately 19% year over year to a range of $5.2 billion to $5.3 billion and grow core EPS approximately 36% year over year to a range of $0.96 to $1.00.
• Corning’s strong third-quarter results and fourth-quarter outlook demonstrate that the acceleration of growth outlined in the company’s “20-30-40” Springboard Plan has begun.
• In the third quarter, Corning secured four long-term, multibillion-dollar customer agreements, including with Verizon and AT&T. The company’s growing number of major customer agreements underpins the growth outlined in Springboard. (1) Third-quarter GAAP results: GAAP sales were $4.86 billion, GAAP gross margin was 37.3%, GAAP operating margin was 18.8%, GAAP EPS was $0.78 , and operating cash flow was $1.06 billion.
Wendell P. Weeks, chairman, chief executive officer, and president, said, “We delivered an outstanding third quarter. Year over year, core sales grew 19% to $5.08 billion, and core EPS grew 36% to $0.91. We expanded core gross margin 150 basis points to 40.5%, core operating margin 310 basis points to 22.7%, and core ROIC 330 basis points to 16.7% – with strong adjusted free cash flow of $661 million, while investing more than half a billion in capital expenditures to address demand for our innovations. Our strong results provide excellent proof points of the acceleration of growth outlined in our ‘20-30-40’ Springboard Plan.”
“We continue to successfully expand our content within customers’ ecosystems and outperform our underlying markets. For example, in Optical Communications, faster adoption of our innovations helped us double our Gen AI sales year over year in the quarter, outpacing GPU unit growth.”
Ed Schlesinger, executive vice president and chief financial officer, said, “When we upgraded Springboard in May, we laid out a path to double our annualized sales run rate from $20 billion to $40 billion by the end of 2030. We also expect to grow earnings faster than sales, with significantly higher ROIC and substantially more free cash flow. To support that growth, we have steadily added capacity, backed by long-term customer agreements that share the cost and risk of expansions. As a result, we have been able to grow adjusted free cash flow to $2.27 billion through the first nine months of 2026 while investing to meet demand.”
“Looking ahead, we expect our outstanding performance to continue. In the fourth quarter, we expect to grow core sales approximately 19% year over year to a range of $5.2 billion to $5.3 billion and grow core EPS approximately 36% year over year to a range of $0.96 to $1.00.”
• GAAP sales were $4.86 billion, up 18% year over year. Core sales were $5.08 billion, up 19% year over year.
• GAAP EPS was $0.78, up 56% year over year. Core EPS was $0.91, up 36% year over year. The difference between GAAP and core EPS principally reflects adjustments for hedged exposures, along with discrete tax items. A complete quantitative reconciliation of these and other reconciling items appears in the tables accompanying this release.
• GAAP gross margin was 37.3%. Core gross margin expanded 150 basis points year over year to 40.5%.
• GAAP operating margin was 18.8%. Core operating margin expanded 310 basis points year over year to 22.7%.
• GAAP operating cash flow was $1.06 billion, and adjusted free cash flow was $661 million.
• In the fourth quarter, management expects to grow core sales approximately 19% year over year to a range of $5.2 billion to $5.3 billion and grow core EPS approximately 36% year over year to a range of $0.96 to $1.00. 2 Corning Reports Third-Quarter 2026 Financial Results
(1) Core performance measures are non-GAAP financial measures. The reconciliation between GAAP and non-GAAP measures is provided in the tables following this news release as well as on the company’s website. 3 Corning Reports Third-Quarter 2026 Financial Results
The third-quarter results below are prepared on a basis consistent with Corning’s segment reporting as presented in the company’s consolidated financial statements.
Effective in the first quarter of 2026, Corning revised its segment reporting structure to align with its current operating and management structure. As a result, the company created a Glass Innovations segment, combining its former Display and Specialty Materials segments. Corning also created a Solar segment, which includes Hemlock Semiconductor Group and the company’s solar wafer and module manufacturing businesses. Optical Communications and Automotive remain unchanged. All other results will be grouped as Life Sciences and Emerging Growth Businesses. Prior-period results have been recast to conform to the current presentation.
On Dec. 1, Corning Incorporated will attend the UBS Global Technology and AI Conference in Scottsdale, Arizona. In addition, the company will schedule management visits to investor offices in select cities. Visit the company’s Investor Relations website for up-to-date information.
The company will host its third-quarter conference call on Tuesday, Oct. 27, at 8:30 a.m. ET. To participate, individuals may preregister here prior to the start of the call. Once the required fields are completed, click “Register.” A telephone number and PIN will be auto generated and will pop up on screen. Participants will have the choice to “Dial In” or have the system “Call Me.” A confirmation email will also be sent with specific dial-in information. To listen to a live audio webcast of the call, go to the company’s Investor Relations events page and follow the instructions.
This news release includes non-GAAP financial measures. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP. Corning’s non- GAAP financial measures exclude the impact of items that are driven by general economic conditions and events that do not reflect the underlying fundamentals and trends in the company’s operations. The company believes presenting non-GAAP financial measures assists in analyzing financial performance without the impact of items that may obscure trends in the company’s underlying performance. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found on the company’s website by going to the Investor Relations page and clicking “Quarterly Results” under the “Financials and Filings” tab. These reconciliations also accompany this news release.
With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control. As a result, management is unable to provide outlook information on a GAAP basis.
The statements contained in this release 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 statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include estimates and assumptions related to economic, competitive and legislative developments. Such statements relate to future events that by their nature address matters that are, to different degrees, uncertain. These forward- looking statements relate to, among other things, the Company’s Springboard plan, projected financial and operating performance, anticipated sales opportunities, long-term growth strategy, expected capital deployment, innovation and commercialization plans, and anticipated impacts of customer agreements.
Although the company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, current estimates and forecasts, general economic conditions, its knowledge of its business and key performance indicators that impact the company, there can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. 5 Corning Reports Third-Quarter 2026 Financial Results
Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward- looking statements include, but are not limited to: global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries, and related impacts on our businesses’ global supply chains and strategies; changes in macroeconomic and market conditions and market volatility, including developments and volatility arising from health crisis events, inflation, interest rates, the value of securities and other financial assets, precious metals, oil, natural gas, raw materials and other commodity prices and exchange rates (particularly between the U.S. dollar and the Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar), decreases or sudden increases of consumer demand, and the impact of such changes and volatility on our financial position and businesses; the availability of or adverse changes relating to government grants, tax credits or other government incentives; the duration and severity of health crisis events, such as an epidemic or pandemic, and its impact across our businesses on demand, personnel, operations, our global supply chains and stock price; possible disruption in commercial activities or our supply chain due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, international trade disputes or major health concerns; loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; ability to enforce patents and protect intellectual property and trade secrets; disruption to Corning’s, our suppliers’ and manufacturers’ supply chain, equipment, facilities, IT systems or operations; product demand and industry capacity; competitive products and pricing; availability and costs of critical components, materials, equipment, natural resources and utilities; new product development and commercialization; our solar business development, including manufacturing facility construction, ramp, and operations, and the achievement of solar revenue and profitability targets; order activity and demand from major customers; the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; the amount and timing of any future dividends; the effects of acquisitions, dispositions and other similar transactions; the effect of regulatory and legal developments; ability to pace capital spending to anticipated levels of customer demand; our ability to increase margins through implementation of operational changes, pricing actions and cost reduction measures; rate of technology change; adverse litigation; product and component performance issues; retention of key personnel; customer ability to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; loss of significant customers; changes in tax laws, regulations and international tax standards; the impacts of audits by taxing authorities; the potential impact of legislation, government regulations, and other government action and investigations; and other risks detailed in Corning’s SEC filings.
For a complete listing of risks and other factors, please reference the risk factors and forward-looking statements described in our annual reports on Form 10-K and quarterly reports on Form 10-Q.
In accordance with guidance provided by the SEC regarding the use of company websites and social media channels to disclose material information, Corning Incorporated (“Corning”) wishes to notify investors, media, and other interested parties that it uses its website (https://www.corning.com/worldwide/en/about- us/news-events.html) to publish important information about the company, including information that may be deemed material to investors, or supplemental to information contained in this or other press releases. The list of websites and social media channels that the company uses may be updated on Corning’s media and website from time to time. Corning encourages investors, media, and other interested parties to review the information Corning may publish through its website and social media channels as described above, in addition to the company’s SEC filings, press releases, conference calls, and webcasts. 6 Corning Reports Third-Quarter 2026 Financial Results
Corning (www.corning.com) is one of the world’s leading innovators in materials science, with a 175-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics, along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning’s capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping its customers capture new opportunities in dynamic industries. Today, Corning’s markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences.
Consolidated Statements of Income Corning Incorporated and Subsidiary Companies (Unaudited; in millions, except per share amounts)
Consolidated Balance Sheets Corning Incorporated and Subsidiary Companies (Unaudited; in millions, except share and per share amounts)
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash equivalents $ 2,537 $ 1,526 Trade accounts receivable, net of 3,101 2,779 doubtful accounts Inventories 3,646 3,077 Other current assets 2,058 1,554 Total current assets 11,342 8,936 Property, plant and equipment, net of 15,517 14,825 accumulated depreciation Goodwill 2,484 2,489 Other intangible assets, net 587 657 Deferred income taxes 1,615 1,515 Other assets 2,581 2,554 Total Assets $ 34,126 $ 30,976 Liabilities and Equity Current liabilities: Current portion of long-term debt and $ 933 $ 804 short-term borrowings Accounts payable 2,492 1,979 Other accrued liabilities 3,160 2,845 Total current liabilities 6,585 5,628 Long-term debt 7,267 7,630 Postretirement benefits other than 324 314 pensions Other liabilities 5,662 5,097 Total liabilities 19,838 18,669 Commitments and contingencies Shareholders’ equity: Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; 927 924 Shares issued: 1.9 billion and 1.8 billion Additional paid-in capital 18,687 17,580 Retained earnings 17,427 16,551 Treasury stock, at cost; Shares held: -21,438 -21,143 994 million and 992 million Accumulated other comprehensive loss -1,932 -2,105 Total Corning Incorporated shareholders’ 13,671 11,807 equity Non-controlling interest 617 500 Total equity 14,288 12,307 Total Liabilities and Equity $ 34,126 $ 30,976
Consolidated Statements of Cash Corning Incorporated and Subsidiary Flows Companies (Unaudited; in millions)
Three Nine Cash months months Flows ended ended from Septem… Septemb… Operat… 30, 30, Activi… 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net $ 746 $ 470 $ 1,763 $ 1,155 income operat… activi… Deprec… 371 310 1,073 913 Amorti… of 22 27 68 83 purcha… intang… Loss on dispos… of 35 15 58 20 assets, net Share-… compen… 48 99 298 216 expense Transl… loss (gain) on 4 -4 -1 66 foreign denomi… debt, net Deferr… tax 56 -110 -45 -149 provis… (benef… Transl… earnin… contra… -138 -33 -212 -63 gain, net Changes in assets and liabil… Trade accoun… -161 -226 -416 -429 receiv… Invent… -194 -28 -571 -266 Other current -12 -151 -156 -256 assets Accoun… payable and 464 450 659 391 other current liabil… Custom… deposi… and -70 -92 639 -49 govern… incent… Deferr… -43 -38 -145 -108 income Other, -67 95 128 119 net Net cash provid… 1,061 784 3,140 1,643 by operat… activi… Cash Flows from Invest… Activi… Capital -545 -334 -1,299 -850 expend… Procee… from 8 govern… incent… Realiz… gains on transl… 145 85 423 192 earnin… contra… and other Premiu… paid on -43 -49 -145 -83 hedging contra… Other, -1 8 -24 net Net cash used in -443 -299 -1,005 -765 invest… activi… Cash Flows from Financ… Activi… Repaym… -270 -3 -961 -282 of debt Procee… from issuan… of debt 449 285 and short-… borrow… Repaym… of acquis… -2 -33 -2 -33 related debt Procee… from cross 24 curren… swap Procee… from 500 warran… Princi… paymen… on -41 -8 -106 -24 finance leases Paymen… of employ… withho… -15 -17 -294 -87 tax on stock awards Procee… from exerci… 1 19 24 31 of stock options Purcha… of common -25 -158 stock for treasu… Divide… -262 -241 -757 -744 paid Other, -6 -16 -20 -32 net Net cash used in -595 -324 -1,167 -1,020 financ… activi… Effect of exchan… 17 -4 17 22 rates on cash Net increa… (decre… in cash and 40 157 985 -120 cash equiva… and restri… cash Cash and cash equiva… and 2,511 1,491 1,566 1,768 restri… cash at beginn… of period Cash and cash equiva… and $ 2,551 $ 1,648 $ 2,551 $ 1,648 restri… cash at end of period Restri… cash includ… in 14 14 other current assets Cash and cash equiva… $ 2,537 $ 1,648 $ 2,537 $ 1,648 at end of period
The following table sets forth the computation of basic and diluted earnings per common share:
Management uses non-GAAP financial measures (our “core performance measures”), together with GAAP financial measures, to evaluate operating performance, make financial and operational decisions, and allocate resources. Management believes that core performance measures, when considered together with the Company’s GAAP results, provide investors with useful supplemental information by facilitating a functional view of operating results and providing additional insight into factors and trends affecting the Company’s performance.
Specifically, in managing the Company and assessing our financial performance, we supplement certain measures included in our consolidated financial statements by excluding specific items and making certain adjustments to arrive at our core performance measures. These measures are intended to supplement, and should not be viewed as a substitute for, the Company’s GAAP financial measures.
Items excluded from certain core performance measures include realized and unrealized gains and losses on our undesignated foreign exchange forward or option contracts and cross-currency swaps, which we refer to as our translated earnings contracts, and on the translation of our foreign-denominated debt. Other excluded items include acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments, and other items that do not reflect the ongoing operating results of the Company.
Prior to April 1, 2026, we included an adjustment to derive our core performance measures that utilized long-term management-determined core rates, which were used in our presentation of the “constant-currency adjustment.” These core rates were applied to all foreign currency exposures for which we were significantly hedged during the applicable period, even though we may have been less than 100% hedged.
Effective April 1, 2026, we prospectively replaced constant-currency reporting with a new non-GAAP adjustment, which we refer to as our “adjustment for hedged exposures” as discussed in more detail below. The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies.
Because a significant portion of the Company’s revenues and expenses are denominated in currencies other than the U.S. dollar, the Company maintains a foreign currency risk management program whereby it hedges its foreign currency exposure to the Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar. Management utilizes the adjustment for hedged exposures for the Optical Communications, Glass Innovations and Automotive segments to reflect the Company’s foreign currency risk management program with respect to these currencies, as applicable to each segment. The most significant adjustment relates to the Japanese yen exposure within the Glass Innovations segment. Management believes that this adjustment for hedged exposures is useful for analyzing underlying business trends and establishing operational goals and forecasts by illustrating results aligned with the currency environment established by the Company’s foreign currency risk management program.
The adjustment for hedged exposures is calculated by applying our hedge rates (as defined below) to the portion of foreign currency exposure that is hedged by the Company’s hedging instruments during the applicable period. These hedging instruments include our translated earnings contracts and non-derivative instruments such as foreign-denominated debt. The identification of hedged exposures is consistent with the Company’s documented foreign exchange risk management practices. The remaining portion of foreign currency exposure that is not hedged is not adjusted and continues to be reflected at the exchange rates used in the Company’s consolidated GAAP results during the applicable period. The currency rates used in calculating this adjustment for hedged exposures (our “hedge rates”) reflect the weighted average of the contractual exchange rates of the Company’s hedging instruments in place for foreign currency exposure for the applicable period. The realized and unrealized gains or losses from our translated earnings contracts and non-derivative instruments are excluded from our core performance measures in our GAAP to core reconciliation, and we include the adjustment for hedged exposures to reflect the underlying hedge rates related to these hedging instruments. The adjustment for hedged exposures, when applied to net sales, reflects only the impact of foreign currency exchange rate movements on the hedged portion of exposure.
Management believes the adjustment for hedged exposures provides investors with useful supplemental information regarding operating performance by reflecting the effect of the Company’s foreign currency risk management program on the portion of exposure actually hedged during the applicable period.
Core performance measures for the comparative prior period as presented herein are the amounts as historically reported. The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies and reflect different foreign currency hedging approaches in the periods presented. Prior-period amounts have not been recast to the current-period presentation. Application of the current adjustment for hedged exposures in place of the prior constant- currency adjustment for the comparative 2025 periods would have resulted in higher year-over-year growth rates for core net sales, core net income and core earnings per share for the three and nine months ended September 30, 2026. 12 For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, refer to “Reconciliation of Non-GAAP Measures.” With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control. As a result, management is unable to provide outlook information on a GAAP basis. 13
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary Companies (Unaudited; in millions, except per share amounts)
(b) The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $66 million and $67 million, respectively.
(b) The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $50 million and $51 million, respectively.
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items. 14
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary Companies (Unaudited; in millions, except per share amounts)
(b) The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $40 million and $41 million, respectively.
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items. 15
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary Companies (Unaudited; in millions, except per share amounts)
(b) The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $153 million and $156 million, respectively.
(b) The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $99 million and $102 million, respectively.
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items. 16
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary Companies (Unaudited; in millions)
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items. 17
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary Companies (Unaudited; in millions)
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items. 18
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary Companies (Unaudited; in millions)
Core return on invested capital (“core ROIC”) is a non-GAAP measure used by management and can be used by investors to review our investment and capital allocation decisions. We define core ROIC as the after-tax core operating income, inclusive of core equity earnings from affiliated companies, as a percentage of invested capital, calculated as total equity plus total long-term debt. Core ROIC for the three months ended September 30, 2026 and 2025 is calculated by annualizing the after-tax return for the respective period.
(1) Refer to the reconciliation of operating income as reported in our GAAP results to core operating income within the “Reconciliation of non-GAAP measures.”
(2) There was no equity earnings in affiliated companies as of September 30, 2026 as reflected within other expense, net in the consolidated statements of income and $1 million for the three months ended September 30, 2025. The difference between equity earnings in affiliated companies as reported in our GAAP results and as reflected as a non-GAAP core performance measure is an adjustment for hedged exposures reporting for the three months ended September 30, 2026 and an adjustment for constant currency reporting for the three months ended September 30, 2025, as described within “Core Performance Measures.”
(3) Income tax amounts are calculated based on the core effective tax rate of 18.5% and 19.5% for the three months ended September 30, 2026 and September 30, 2025, respectively. 19
Items adjusted from GAAP measures to arrive at core performance measures are as follows:
(1) Adjustment for hedged exposures : Effective April 1, 2026, the Company replaced its prior constant-currency adjustment with an adjustment for hedged exposures. Because a significant portion of the Company’s revenues and expenses are denominated in currencies other than the U.S. dollar, the Company maintains a foreign currency risk management program whereby it hedges its exposure to the Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar. Management uses the adjustment for hedged exposures for the Optical Communications, Glass Innovations and Automotive segments to reflect the impact of that program, as applicable to each segment. The most significant adjustment relates to Japanese yen exposure within the Glass Innovations segment, which primarily impacts net sales.
The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies. Under the prior methodology, management-determined rates were applied to all foreign currency exposures for which we were significantly hedged during the applicable period, even though we may have been less than 100% hedged. Under the current adjustment for hedged exposures, contractual hedge rates are applied only to the portion of exposure actually hedged during the applicable period, and the remaining unhedged exposure is reflected at the exchange rates included in the Company’s consolidated GAAP results. The prior- period amounts presented herein are the amounts as historically reported.
The table below presents the hedge rates used in calculating the adjustment for hedged exposures and the percentage of exposure hedged for the three and nine months ended September 30, 2026, and three months ended June 30, 2026. Percentages are calculated relative to after-tax earnings exposure.
(1) Prior to April 1, 2026, the core rate methodology was applied to all relevant foreign exchange exposures; its effects are reflected in the hedge rates and percentages of exposures hedged for the nine months ended September 30, 2026, as discussed and presented below.
Constant-currency adjustment : Prior to April 1, 2026, the constant-currency rates used were as follows and were applied to all relevant foreign currency exposures during the three months ended March 31, 2026 and three and nine months ended September 30, 2025:
Japanese Mexican Chinese South New Curren… yen peso yuan Korean Euro Taiwan won dollar Core ¥120 MX$21 ¥6.9 ₩1,250 €0.88 NT$31 Rate
(2) Translation of foreign denominated debt, net : Amount reflects the gain or loss on the translation of our yen-denominated and euro-denominated debt to U.S. dollars, net of gains or losses on related derivative instruments.
(3) Translated earnings contract, net : Amount reflects the impact of the realized and unrealized gains and losses on our derivative instruments used to hedge Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar foreign currency exposure related to translated earnings.
(4) Acquisition-related costs : Amount reflects intangible amortization, inventory valuation adjustments, contingent consideration adjustments and external acquisition-related deal costs, as well as other transaction related costs.
(5) Discrete tax items and other tax-related adjustments : Amount reflects certain discrete period tax items such as changes in tax law, the impact of tax audits, changes in tax reserves, changes in deferred tax asset valuation allowances and stock compensation windfall or shortfall, as well as other tax- related adjustments.
(6) Restructuring, impairment and other charges and credits : Amount reflects certain restructuring, impairment losses and other charges and credits, as well as other expenses, including severance, asset write-offs and facility repairs resulting from power outages, which are not related to ongoing operations. 20 (7) Pension mark-to-market adjustment : Amount primarily reflects defined benefit pension mark-to-market gains and losses, which arise from changes in actuarial assumptions and the difference between actual and expected returns on plan assets and discount rates.
(8) Loss on investments : Amount reflects the loss recognized on investments due to mark-to-market adjustments for the change in fair value or the disposition of an investment.
(9) Litigation, regulatory and other legal matters : Amount reflects developments in commercial litigation, intellectual property disputes, adjustments to our estimated liability for environmental-related items and other legal matters.
(10) Gain or loss on sale of business : Amount reflects the gain or loss recognized for the sale of a business, recorded in other expense, net, on the consolidated statements of income.
(11) Gain or loss on sale of assets : Amount represents the gain or loss recognized for the sale of assets, recorded in cost of sales, on the consolidated statements of income.
(12) Equity in losses of affiliated companies : Amount reflects costs not related to continuing operations of affiliated companies, such as restructuring, impairment losses, inventory adjustments, and other charges and credits. 21
Full text with the tables
Exhibit 99
News Release
FOR RELEASE
– Oct. 27, 2026
Corning Delivers Outstanding Third-Quarter Results
(1)
CORNING, N.Y. —
Corning Incorporated (NYSE: GLW) today announced third-quarter 2026 results that
exceeded guidance and provided its outlook for fourth-quarter 2026.
News Summary:
• Corning grew third-quarter core sales 19% year over year to $5.08 billion –
the strongest growth since the launch of Springboard – and grew core EPS nearly
twice as fast to $0.91.
• Optical Communications continued to drive powerful growth, with Q3 sales up
44% to $2.38 billion; Enterprise Networks grew sales 84%, with Gen AI product
sales growing more than 100% year over year.
• Solar grew sales 37% year over year, as production continued to ramp, albeit
at a slower pace than anticipated. As productivity continues to improve, so will
output and profitability. Additionally, in Q3, U.S. trade action under Section
232 of the Trade Expansion Act of 1962 improves the overall pricing environment
and demand for U.S.-made solar products. Overall, the company is making solid
progress building a more than $3 billion Solar revenue stream.
• Glass Innovations continued to successfully execute its “More Corning” content
strategy, driving adoption of Corning innovations and outperforming TV unit,
notebook, and smartphone markets, which have been impacted by memory pricing.
• In the fourth quarter, management expects to grow core sales approximately 19%
year over year to a range of $5.2 billion to $5.3 billion and grow core EPS
approximately 36% year over year to a range of $0.96 to $1.00.
• Corning’s strong third-quarter results and fourth-quarter outlook demonstrate
that the acceleration of growth outlined in the company’s “20-30-40” Springboard
Plan has begun.
• In the third quarter, Corning secured four long-term, multibillion-dollar
customer agreements, including with Verizon and AT&T. The company’s growing
number of major customer agreements underpins the growth outlined in
Springboard.
(1) Third-quarter GAAP results: GAAP sales were $4.86 billion, GAAP gross margin
was 37.3%, GAAP operating margin was 18.8%, GAAP EPS was $0.78 , and operating
cash flow was $1.06 billion.
1
Corning Reports Third-Quarter 2026 Financial Results
Page 2
Wendell P. Weeks, chairman, chief executive officer, and president, said, “We
delivered an outstanding third quarter. Year over year, core sales grew 19% to
$5.08 billion, and core EPS grew 36% to $0.91. We expanded core gross margin 150
basis points to 40.5%, core operating margin 310 basis points to 22.7%, and core
ROIC 330 basis points to 16.7% – with strong adjusted free cash flow of $661
million, while investing more than half a billion in capital expenditures to
address demand for our innovations. Our strong results provide excellent proof
points of the acceleration of growth outlined in our ‘20-30-40’ Springboard
Plan.”
Weeks continued,
“We continue to successfully expand our content within customers’ ecosystems and
outperform our underlying markets. For example, in Optical Communications,
faster adoption of our innovations helped us double our Gen AI sales year over
year in the quarter, outpacing GPU unit growth.”
Ed Schlesinger, executive vice president and chief financial officer, said,
“When we upgraded Springboard in May, we laid out a path to double our
annualized sales run rate from $20 billion to $40 billion by the end of 2030. We
also expect to grow earnings faster than sales, with significantly higher ROIC
and substantially more free cash flow. To support that growth, we have steadily
added capacity, backed by long-term customer agreements that share the cost and
risk of expansions. As a result, we have been able to grow adjusted free cash
flow to $2.27 billion through the first nine months of 2026 while investing to
meet demand.”
Schlesinger continued,
“Looking ahead, we expect our outstanding performance to continue. In the fourth
quarter, we expect to grow core sales approximately 19% year over year to a
range of $5.2 billion to $5.3 billion and grow core EPS approximately 36% year
over year to a range of $0.96 to $1.00.”
Third-Quarter 2026 Financial Highlights:
• GAAP sales were $4.86 billion, up 18% year over year. Core sales were $5.08
billion, up 19% year over year.
• GAAP EPS was $0.78, up 56% year over year. Core EPS was $0.91, up 36% year
over year. The difference between GAAP and core EPS principally reflects
adjustments for hedged exposures, along with discrete tax items. A complete
quantitative reconciliation of these and other reconciling items appears in the
tables accompanying this release.
• GAAP gross margin was 37.3%. Core gross margin expanded 150 basis points year
over year to 40.5%.
• GAAP operating margin was 18.8%. Core operating margin expanded 310 basis
points year over year to 22.7%.
• GAAP operating cash flow was $1.06 billion, and adjusted free cash flow was
$661 million.
Fourth-Quarter 2026 Outlook:
• In the fourth quarter, management expects to grow core sales approximately 19%
year over year to a range of $5.2 billion to $5.3 billion and grow core EPS
approximately 36% year over year to a range of $0.96 to $1.00.
2
Corning Reports Third-Quarter 2026 Financial Results
Page 3
Third
-Quarter 2026 Results and Comparisons
(In millions, except per-share amounts)
Res…
(GA…
Q3 Q2 Q3 Q/Q Y/Y
2026 2026 2025
Net $4,8… $4,5… $4,1… 8 % 18 %
Sal…
Net $680 $559 $430 22 % 58 %
Inc…
Dil… $0.78 $0.64 $0.50 22 % 56 %
EPS
(1) Represents GAAP net income attributable to Corning Incorporated.
Core
Res…
(No…
Q3 Q2 Q3 Q/Q Y/Y
2026 2026 2025
Core $5,0… $4,7… $4,2… 7 % 19 %
Sal…
Core
Net $795 $680 $585 17 % 36 %
Inc…
Core $0.91 $0.78 $0.67 17 % 36 %
EPS
(1) Core performance measures are non-GAAP financial measures. The
reconciliation between GAAP and non-GAAP measures is provided in the tables
following this news release as well as on the company’s website.
3
Corning Reports Third-Quarter 2026 Financial Results
Page 4
Third-Quarter 2026 Segment Results
(In millions)
The third-quarter results below are prepared on a basis consistent with
Corning’s segment reporting as presented in the company’s consolidated financial
statements.
Effective in the first quarter of 2026, Corning revised its segment reporting
structure to align with its current operating and management structure. As a
result, the company created a Glass Innovations segment, combining its former
Display and Specialty Materials segments. Corning also created a Solar segment,
which includes Hemlock Semiconductor Group and the company’s solar wafer and
module manufacturing businesses. Optical Communications and Automotive remain
unchanged. All other results will be grouped as Life Sciences and Emerging
Growth Businesses. Prior-period results have been recast to conform to the
current presentation.
Opt…
Com…
Q3 Q2 Q3 Q/Q Y/Y
2026 2026 2025
Net $2,3… $2,0… $1,6… 15 % 44 %
Sal…
Net $532 $438 $295 21 % 80 %
Inc…
Gla…
Inn…
Q3 Q2 Q3 Q/Q Y/Y
2026 2026 2025
Net $1,5… $1,4… $1,5… 3 % (3 %)
Sal…
Net $328 $354 $363 (7 %) (10 %)
Inc…
Auto…
Q3 Q2 Q3 Q/Q Y/Y
2026 2026 2025
Net $470 $471 $454 — % 4 %
Sales
Net $67 $82 $68 (18 %) (1 %)
Inco…
Solar
Q3 Q2 2026 Q3 Q/Q Y/Y
2026 2025
Net $436 $438 $319 — % 37 %
Sales
Net
(Loss) -$7 -$7 $30 — % *
Income
* Not meaningful
Life
Scie…
and
Emer…
Grow…
Busi…
Q3 Q2 Q3 Q/Q Y/Y
2026 2026 2025
Net $290 $294 $287 (1 %) 1 %
Sales
Net -$28 -$21 -$15 (33 %) (87 %)
Loss
4
Corning Reports Third-Quarter 2026 Financial Results
Page 5
Upcoming Investor Events
On Dec. 1, Corning Incorporated will attend the UBS Global Technology and AI
Conference in Scottsdale, Arizona. In addition, the company will schedule
management visits to investor offices in select cities. Visit the company’s
Investor Relations website for up-to-date information.
Third
-Quarter Conference Call Information
The company will host its third-quarter conference call on Tuesday, Oct. 27, at
8:30 a.m. ET. To participate, individuals may preregister here prior to the
start of the call. Once the required fields are completed, click “Register.” A
telephone number and PIN will be auto generated and will pop up on screen.
Participants will have the choice to “Dial In” or have the system “Call Me.” A
confirmation email will also be sent with specific dial-in information. To
listen to a live audio webcast of the call, go to the company’s Investor
Relations events page and follow the instructions.
Presentation of Information in this News Release
This news release includes non-GAAP financial measures. Non-GAAP financial
measures are not in accordance with, or an alternative to, GAAP. Corning’s non-
GAAP financial measures exclude the impact of items that are driven by general
economic conditions and events that do not reflect the underlying fundamentals
and trends in the company’s operations. The company believes presenting non-GAAP
financial measures assists in analyzing financial performance without the impact
of items that may obscure trends in the company’s underlying performance.
Definitions of these non-GAAP financial measures and reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP financial
measures can be found on the company’s website by going to the Investor
Relations page and clicking “Quarterly Results” under the “Financials and
Filings” tab. These reconciliations also accompany this news release.
With respect to the outlook for future periods, it is not possible to provide
reconciliations for these non-GAAP measures because management does not forecast
the movement of foreign currencies against the U.S. dollar, or other items that
do not reflect ongoing operations, nor does it forecast items that have not yet
occurred or are out of management’s control. As a result, management is unable
to provide outlook information on a GAAP basis.
Caution Concerning Forward-Looking Statements
The statements contained in this release 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 statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
include estimates and assumptions related to economic, competitive and
legislative developments. Such statements relate to future events that by their
nature address matters that are, to different degrees, uncertain. These forward-
looking statements relate to, among other things, the Company’s Springboard
plan, projected financial and operating performance, anticipated sales
opportunities, long-term growth strategy, expected capital deployment,
innovation and commercialization plans, and anticipated impacts of customer
agreements.
Although the company believes that these forward-looking statements are based
upon reasonable assumptions regarding, among other things, current estimates and
forecasts, general economic conditions, its knowledge of its business and key
performance indicators that impact the company, there can be no assurance that
these forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
statements. The company undertakes no obligation to update forward-looking
statements if circumstances or management’s estimates or opinions should change
except as required by applicable securities laws.
5
Corning Reports Third-Quarter 2026 Financial Results
Page 6
Some of the risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed in or implied by the forward-
looking statements include, but are not limited to: global economic trends,
competition and geopolitical risks, or an escalation of sanctions, tariffs or
other trade tensions between the U.S. and other countries, and related impacts
on our businesses’ global supply chains and strategies; changes in macroeconomic
and market conditions and market volatility, including developments and
volatility arising from health crisis events, inflation, interest rates, the
value of securities and other financial assets, precious metals, oil, natural
gas, raw materials and other commodity prices and exchange rates (particularly
between the U.S. dollar and the Japanese yen, Mexican peso, Chinese yuan, South
Korean won, euro and New Taiwan dollar), decreases or sudden increases of
consumer demand, and the impact of such changes and volatility on our financial
position and businesses; the availability of or adverse changes relating to
government grants, tax credits or other government incentives; the duration and
severity of health crisis events, such as an epidemic or pandemic, and its
impact across our businesses on demand, personnel, operations, our global supply
chains and stock price; possible disruption in commercial activities or our
supply chain due to terrorist activity, cyber-attack, armed conflict, political
or financial instability, natural disasters, international trade disputes or
major health concerns; loss of intellectual property due to theft, cyber-attack,
or disruption to our information technology infrastructure; ability to enforce
patents and protect intellectual property and trade secrets; disruption to
Corning’s, our suppliers’ and manufacturers’ supply chain, equipment,
facilities, IT systems or operations; product demand and industry capacity;
competitive products and pricing; availability and costs of critical components,
materials, equipment, natural resources and utilities; new product development
and commercialization; our solar business development, including manufacturing
facility construction, ramp, and operations, and the achievement of solar
revenue and profitability targets; order activity and demand from major
customers; the amount and timing of our cash flows and earnings and other
conditions, which may affect our ability to pay our quarterly dividend at the
planned level or to repurchase shares at planned levels; the amount and timing
of any future dividends; the effects of acquisitions, dispositions and other
similar transactions; the effect of regulatory and legal developments; ability
to pace capital spending to anticipated levels of customer demand; our ability
to increase margins through implementation of operational changes, pricing
actions and cost reduction measures; rate of technology change; adverse
litigation; product and component performance issues; retention of key
personnel; customer ability to maintain profitable operations and obtain
financing to fund ongoing operations and manufacturing expansions and pay
receivables when due; loss of significant customers; changes in tax laws,
regulations and international tax standards; the impacts of audits by taxing
authorities; the potential impact of legislation, government regulations, and
other government action and investigations; and other risks detailed in
Corning’s SEC filings.
For a complete listing of risks and other factors, please reference the risk
factors and forward-looking statements described in our annual reports on Form
10-K and quarterly reports on Form 10-Q.
Web Disclosure
In accordance with guidance provided by the SEC regarding the use of company
websites and social media channels to disclose material information, Corning
Incorporated (“Corning”) wishes to notify investors, media, and other interested
parties that it uses its website (https://www.corning.com/worldwide/en/about-
us/news-events.html) to publish important information about the company,
including information that may be deemed material to investors, or supplemental
to information contained in this or other press releases. The list of websites
and social media channels that the company uses may be updated on Corning’s
media and website from time to time. Corning encourages investors, media, and
other interested parties to review the information Corning may publish through
its website and social media channels as described above, in addition to the
company’s SEC filings, press releases, conference calls, and webcasts.
6
Corning Reports Third-Quarter 2026 Financial Results
Page 7
About Corning Incorporated
Corning (www.corning.com) is one of the world’s leading innovators in materials
science, with a 175-year track record of life-changing inventions. Corning
applies its unparalleled expertise in glass science, ceramic science, and
optical physics, along with its deep manufacturing and engineering capabilities
to develop category-defining products that transform industries and enhance
people’s lives. Corning succeeds through sustained investment in RD&E, a unique
combination of material and process innovation, and deep, trust-based
relationships with customers who are global leaders in their industries.
Corning’s capabilities are versatile and synergistic, which allows the company
to evolve to meet changing market needs, while also helping its customers
capture new opportunities in dynamic industries. Today, Corning’s markets
include optical communications, mobile consumer electronics, display,
automotive, solar, semiconductors, and life sciences.
Media Relations Contact:
Gabrielle Bailey
(607) 684-4557
baileygr@corning.com
Investor Relations Contact:
Christopher Keenan
(607) 974-6716
keenanct@corning.com
7
Consolidated Statements of Income Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions, except per
share amounts)
Three Nine
months months
ended ended
September Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 4,855 $ 4,100 $ 13,504 $ 11,414
sales
Cost of 3,045 2,580 8,538 7,288
sales
Gross 1,810 1,520 4,966 4,126
margin
Operati…
expense…
Selling,
general
and 563 624 1,759 1,610
adminis…
expenses
Researc…
develop…
and 314 280 891 826
enginee…
expenses
Amortiz…
of 22 27 68 83
purchas…
intangi…
Operati… 911 589 2,248 1,607
income
Interest 17 10 38 27
income
Interest -87 -78 -273 -243
expense
Transla…
earnings
contract 138 33 212 63
gain,
net
Other
expense, -11 -4 -79 -80
net
Income
before 968 550 2,146 1,374
income
taxes
Provisi…
for -222 -80 -383 -219
income
taxes
Net 746 470 1,763 1,155
income
Net
income
attribu… -66 -40 -153 -99
to
non-con…
interest
Net
income
attribu… $ 680 $ 430 $ 1,610 $ 1,056
to
Corning
Incorpo…
Earnings
per
common
share
availab…
to
common
shareho…
Basic $ 0.79 $ 0.50 $ 1.87 $ 1.24
Diluted $ 0.78 $ 0.50 $ 1.85 $ 1.21
8
Consolidated Balance Sheets Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions, except
share
and per share amounts)
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and cash equivalents $ 2,537 $ 1,526
Trade accounts receivable, net of 3,101 2,779
doubtful accounts
Inventories 3,646 3,077
Other current assets 2,058 1,554
Total current assets 11,342 8,936
Property, plant and equipment, net of 15,517 14,825
accumulated depreciation
Goodwill 2,484 2,489
Other intangible assets, net 587 657
Deferred income taxes 1,615 1,515
Other assets 2,581 2,554
Total Assets $ 34,126 $ 30,976
Liabilities and Equity
Current liabilities:
Current portion of long-term debt and $ 933 $ 804
short-term borrowings
Accounts payable 2,492 1,979
Other accrued liabilities 3,160 2,845
Total current liabilities 6,585 5,628
Long-term debt 7,267 7,630
Postretirement benefits other than 324 314
pensions
Other liabilities 5,662 5,097
Total liabilities 19,838 18,669
Commitments and contingencies
Shareholders’ equity:
Common stock – Par value $0.50 per
share; Shares authorized 3.8 billion; 927 924
Shares issued: 1.9 billion and 1.8
billion
Additional paid-in capital 18,687 17,580
Retained earnings 17,427 16,551
Treasury stock, at cost; Shares held: -21,438 -21,143
994 million and 992 million
Accumulated other comprehensive loss -1,932 -2,105
Total Corning Incorporated
shareholders’ 13,671 11,807
equity
Non-controlling interest 617 500
Total equity 14,288 12,307
Total Liabilities and Equity $ 34,126 $ 30,976
9
Consolidated Statements of Cash Corning Incorporated and Subsidiary
Flows Companies
(Unaudited; in millions)
Three Nine
Cash months months
Flows ended ended
from Septem… Septemb…
Operat… 30, 30,
Activi… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 746 $ 470 $ 1,763 $ 1,155
income
operat…
activi…
Deprec… 371 310 1,073 913
Amorti…
of 22 27 68 83
purcha…
intang…
Loss on
dispos…
of 35 15 58 20
assets,
net
Share-…
compen… 48 99 298 216
expense
Transl…
loss
(gain)
on 4 -4 -1 66
foreign
denomi…
debt,
net
Deferr…
tax 56 -110 -45 -149
provis…
(benef…
Transl…
earnin…
contra… -138 -33 -212 -63
gain,
net
Changes
in
assets
and
liabil…
Trade
accoun… -161 -226 -416 -429
receiv…
Invent… -194 -28 -571 -266
Other
current -12 -151 -156 -256
assets
Accoun…
payable
and 464 450 659 391
other
current
liabil…
Custom…
deposi…
and -70 -92 639 -49
govern…
incent…
Deferr… -43 -38 -145 -108
income
Other, -67 95 128 119
net
Net
cash
provid… 1,061 784 3,140 1,643
by
operat…
activi…
Cash
Flows
from
Invest…
Activi…
Capital -545 -334 -1,299 -850
expend…
Procee…
from 8
govern…
incent…
Realiz…
gains
on
transl… 145 85 423 192
earnin…
contra…
and
other
Premiu…
paid on -43 -49 -145 -83
hedging
contra…
Other, -1 8 -24
net
Net
cash
used in -443 -299 -1,005 -765
invest…
activi…
Cash
Flows
from
Financ…
Activi…
Repaym… -270 -3 -961 -282
of debt
Procee…
from
issuan…
of debt 449 285
and
short-…
borrow…
Repaym…
of
acquis… -2 -33 -2 -33
related
debt
Procee…
from
cross 24
curren…
swap
Procee…
from 500
warran…
Princi…
paymen…
on -41 -8 -106 -24
finance
leases
Paymen…
of
employ…
withho… -15 -17 -294 -87
tax on
stock
awards
Procee…
from
exerci… 1 19 24 31
of
stock
options
Purcha…
of
common -25 -158
stock
for
treasu…
Divide… -262 -241 -757 -744
paid
Other, -6 -16 -20 -32
net
Net
cash
used in -595 -324 -1,167 -1,020
financ…
activi…
Effect
of
exchan… 17 -4 17 22
rates
on cash
Net
increa…
(decre…
in cash
and 40 157 985 -120
cash
equiva…
and
restri…
cash
Cash
and
cash
equiva…
and 2,511 1,491 1,566 1,768
restri…
cash at
beginn…
of
period
Cash
and
cash
equiva…
and $ 2,551 $ 1,648 $ 2,551 $ 1,648
restri…
cash at
end of
period
Restri…
cash
includ…
in 14 14
other
current
assets
Cash
and
cash
equiva… $ 2,537 $ 1,648 $ 2,537 $ 1,648
at end
of
period
10
Corning Incorporated and Subsidiary Companies
GAAP Earnings per Common Share
(Unaudited; in millions, except per share amounts)
The following table sets forth the computation of basic and diluted earnings per
common share:
Three Nine
months months
ended ended
September September
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
attribu… $ 680 $ 430 $ 1,610 $ 1,056
to
Corning
Incorpo…
Weighte…
common
shares 863 856 861 855
outstan…
- basic
Effect
of
dilutive
securit…
Stock
options,
awards 8 12 9 15
and
warrants
Weighte…
common
shares 871 868 870 870
outstan…
-
diluted
Basic
earnings
per $ 0.79 $ 0.50 $ 1.87 $ 1.24
common
share
Diluted
earnings
per $ 0.78 $ 0.50 $ 1.85 $ 1.21
common
share
Core Earnings per Share
(Unaudited; in millions, except per share amounts)
The following table sets forth the computation of core earnings per share:
Three Nine
months months
ended ended
September September
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Core net $ 795 $ 585 $ 2,087 $ 1,575
income
Weighte…
common
shares 863 856 861 855
outstan…
- basic
Effect
of
dilutive
securit…
Stock
options,
awards 8 12 9 15
and
warrants
Weighte…
common
shares 871 868 870 870
outstan…
-
diluted
Core
earnings $ 0.91 $ 0.67 $ 2.40 $ 1.81
per
share
11
CORE PERFORMANCE MEASURES
Management uses non-GAAP financial measures (our “core performance measures”),
together with GAAP financial measures, to evaluate operating performance, make
financial and operational decisions, and allocate resources. Management believes
that core performance measures, when considered together with the Company’s GAAP
results, provide investors with useful supplemental information by facilitating
a functional view of operating results and providing additional insight into
factors and trends affecting the Company’s performance.
Specifically, in managing the Company and assessing our financial performance,
we supplement certain measures included in our consolidated financial statements
by excluding specific items and making certain adjustments to arrive at our core
performance measures. These measures are intended to supplement, and should not
be viewed as a substitute for, the Company’s GAAP financial measures.
Items excluded from certain core performance measures include realized and
unrealized gains and losses on our undesignated foreign exchange forward or
option contracts and cross-currency swaps, which we refer to as our translated
earnings contracts, and on the translation of our foreign-denominated debt.
Other excluded items include acquisition-related costs, certain discrete tax
items and other tax-related adjustments, restructuring, impairment and other
charges and credits, certain litigation, regulatory and other legal matters,
pension mark-to-market adjustments, and other items that do not reflect the
ongoing operating results of the Company.
Prior to April 1, 2026, we included an adjustment to derive our core performance
measures that utilized long-term management-determined core rates, which were
used in our presentation of the “constant-currency adjustment.” These core rates
were applied to all foreign currency exposures for which we were significantly
hedged during the applicable period, even though we may have been less than 100%
hedged.
Effective April 1, 2026, we prospectively replaced constant-currency reporting
with a new non-GAAP adjustment, which we refer to as our “adjustment for hedged
exposures” as discussed in more detail below. The prior constant-currency
adjustment and the current adjustment for hedged exposures are distinct non-GAAP
adjustments determined using different methodologies.
Because a significant portion of the Company’s revenues and expenses are
denominated in currencies other than the U.S. dollar, the Company maintains a
foreign currency risk management program whereby it hedges its foreign currency
exposure to the Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro
and New Taiwan dollar. Management utilizes the adjustment for hedged exposures
for the Optical Communications, Glass Innovations and Automotive segments to
reflect the Company’s foreign currency risk management program with respect to
these currencies, as applicable to each segment. The most significant adjustment
relates to the Japanese yen exposure within the Glass Innovations segment.
Management believes that this adjustment for hedged exposures is useful for
analyzing underlying business trends and establishing operational goals and
forecasts by illustrating results aligned with the currency environment
established by the Company’s foreign currency risk management program.
The adjustment for hedged exposures is calculated by applying our hedge rates
(as defined below) to the portion of foreign currency exposure that is hedged by
the Company’s hedging instruments during the applicable period. These hedging
instruments include our translated earnings contracts and non-derivative
instruments such as foreign-denominated debt. The identification of hedged
exposures is consistent with the Company’s documented foreign exchange risk
management practices. The remaining portion of foreign currency exposure that is
not hedged is not adjusted and continues to be reflected at the exchange rates
used in the Company’s consolidated GAAP results during the applicable period.
The currency rates used in calculating this adjustment for hedged exposures (our
“hedge rates”) reflect the weighted average of the contractual exchange rates of
the Company’s hedging instruments in place for foreign currency exposure for the
applicable period. The realized and unrealized gains or losses from our
translated earnings contracts and non-derivative instruments are excluded from
our core performance measures in our GAAP to core reconciliation, and we include
the adjustment for hedged exposures to reflect the underlying hedge rates
related to these hedging instruments. The adjustment for hedged exposures, when
applied to net sales, reflects only the impact of foreign currency exchange rate
movements on the hedged portion of exposure.
Management believes the adjustment for hedged exposures provides investors with
useful supplemental information regarding operating performance by reflecting
the effect of the Company’s foreign currency risk management program on the
portion of exposure actually hedged during the applicable period.
Core performance measures for the comparative prior period as presented herein
are the amounts as historically reported. The prior constant-currency adjustment
and the current adjustment for hedged exposures are distinct non-GAAP
adjustments determined using different methodologies and reflect different
foreign currency hedging approaches in the periods presented. Prior-period
amounts have not been recast to the current-period presentation. Application of
the current adjustment for hedged exposures in place of the prior constant-
currency adjustment for the comparative 2025 periods would have resulted in
higher year-over-year growth rates for core net sales, core net income and core
earnings per share for the three and nine months ended September 30, 2026.
12
For a reconciliation of non-GAAP performance measures to their most directly
comparable GAAP financial measure, refer to “Reconciliation of Non-GAAP
Measures.” With respect to the outlook for future periods, it is not possible to
provide reconciliations for these non-GAAP measures because management does not
forecast the movement of foreign currencies against the U.S. dollar, or other
items that do not reflect ongoing operations, nor does it forecast items that
have not yet occurred or are out of management’s control. As a result,
management is unable to provide outlook information on a GAAP basis.
13
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions, except per
share amounts)
Thr…
mon…
end…
Sep…
30,
2026
──────────────────────────────────────────────────────────────────────────────
Net
Inc… inc… Eff…
Net bef… att… tax Per
sal… inc… to rate Sha…
tax… Cor… (a)…
Inc…
As
re… $ 4,… $ 968 $ 680 22… % $ 0.…
-
GA…
Ad…
for 226 216 175 0.…
he…
ex…
Tr…
lo…
on
fo… 4 4 0.…
de…
de…
ne…
Tr…
ea…
co… -1… -1… -0…
ga…
ne…
Ac… -1 -1 -0…
co…
Di…
tax
it…
and 45 0.…
ot…
ta…
ad…
Re…
im…
and
ot… 8 -1 -0…
ch…
and
cr…
Pe…
ma… -3 -3 -0…
ad…
Lo…
on 4 3 0.…
in…
Li…
re…
and -1 -1 -0…
ot…
le…
ma…
Co…
pe… $ 5,… $ 1,… $ 795 18… % $ 0.…
me…
(a) Based upon statutory tax rates in the specific jurisdiction for each item.
(b) The calculation of the effective tax rate for GAAP and Core excludes net
income attributable to non-controlling interest of approximately $66 million and
$67 million, respectively.
Thr…
mon…
end…
June
30,
2026
──────────────────────────────────────────────────────────────────────────────
Net
Inc… in… Eff…
Net bef… at… tax Per
sal… inc… to rate Sha…
tax… Co… (a)…
In…
As
re… $ 4,5… $ 649 $ 559 6.2 % $ 0.…
-
GA…
Ad…
for 233 208 159 0.…
he…
ex…
Tr…
lo…
on
fo… 1 1 0.…
de…
de…
ne…
Tr…
ea…
co… -90 -68 -0…
ga…
ne…
Ac… 26 18 0.…
co…
Di…
tax
it…
and -79 -0…
ot…
ta…
ad…
Re…
im…
and
ot… 71 60 0.…
ch…
and
cr…
Pe…
ma… 22 18 0.…
ad…
Lo…
on 13 13 0.…
in…
Ga…
on
sa… -2 -1 -0…
of
bu…
Co…
pe… $ 4,7… $ 898 $ 680 18… % $ 0.…
me…
(a) Based upon statutory tax rates in the specific jurisdiction for each item.
(b) The calculation of the effective tax rate for GAAP and Core excludes net
income attributable to non-controlling interest of approximately $50 million and
$51 million, respectively.
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the
footnoted reconciling items.
14
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions, except per
share amounts)
Th…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Net
In… in… Eff…
Net be… at… tax Per
sa… in… to rate Sha…
ta… Co… (a)…
In…
As
r… $ 4,… $ 550 $ 430 14… % $ 0.…
-
G…
C… 172 157 111 0.…
a…
T…
g…
on
f… -4 -4 -0…
d…
d…
n…
T…
e…
c… -33 -25 -0…
g…
n…
A… 30 22 0.…
c…
D…
t…
i…
a… -21 -0…
o…
t…
a…
R…
i…
a…
o… 16 12 0.…
c…
a…
c…
P…
m… 12 9 0.…
a…
L…
on 1 1 0.…
i…
L…
r…
a… 50 50 0.…
o…
l…
m…
C…
p… $ 4,… $ 779 $ 585 19… % $ 0.…
m…
(a) Based upon statutory tax rates in the specific jurisdiction for each item.
(b) The calculation of the effective tax rate for GAAP and Core excludes net
income attributable to non-controlling interest of approximately $40 million and
$41 million, respectively.
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the
footnoted reconciling items.
15
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions, except per
share amounts)
Nine
mon…
end…
Sep…
30,
2026
──────────────────────────────────────────────────────────────────────────────
Net
Inc… inc… Eff…
Net bef… att… tax Per
sal… inc… to rate Sha…
tax… Cor… (a)…
Inc…
As
re… $ 13… $ 2,… $ 1,… 17… % $ 1.…
-
GA…
Ad…
for 459 424 334 0.…
he…
ex…
Co… 201 180 135 0.…
ad…
Tr…
ga…
on
fo… -1 0.…
de…
de…
ne…
Tr…
ea…
co… -2… -1… -0…
ga…
ne…
Ac… 70 51 0.…
co…
Di…
tax
it…
and -4 -0…
ot…
ta…
ad…
Re…
im…
and
ot… 123 101 0.…
ch…
and
cr…
Pe…
ma… 18 14 0.…
ad…
Lo…
on 23 22 0.…
in…
Li…
re…
and -1 -1 -0…
ot…
le…
ma…
Ga…
on
sa… -2 -1 -0…
of
bu…
Ga…
on
sa… -16 -12 -0…
of
as…
Co…
pe… $ 14… $ 2,… $ 2,… 18… % $ 2.…
me…
(a) Based upon statutory tax rates in the specific jurisdiction for each item.
(b) The calculation of the effective tax rate for GAAP and Core excludes net
income attributable to non-controlling interest of approximately $153 million
and $156 million, respectively.
Ni…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Net
In… in… Ef…
Net be… at… tax Per
sa… in… to ra… Sh…
ta… Co… (a…
In…
As
r… $ 11… $ 1,… $ 1,… 15… % $ 1.21
-
G…
C… 582 496 404 0.46
a…
T…
l…
on
f… 66 50 0.06
d…
d…
n…
T…
e…
c… -63 -48 -0.…
g…
n…
A… 89 65 0.07
c…
D…
t…
i…
a… -56 -0.…
o…
t…
a…
R…
i…
a…
o… 10 8 0.01
c…
a…
c…
P…
m… 27 21 0.02
a…
L…
r…
a… 57 55 0.06
o…
l…
m…
L…
on
s… 11 7 0.01
of
b…
L…
on
s… 5 4 0.…
of
a…
E…
in
l… 12 9 0.01
of
a…
c…
C…
p… $ 11… $ 2,… $ 1,… 19… % $ 1.81
m…
(a) Based upon statutory tax rates in the specific jurisdiction for each item.
(b) The calculation of the effective tax rate for GAAP and Core excludes net
income attributable to non-controlling interest of approximately $99 million and
$102 million, respectively.
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the
footnoted reconciling items.
16
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions)
T…
m…
e…
S…
3…
2…
──────────────────────────────────────────────────────────────────────────────
Se… Re…
G… Gr… ge… de… Op… Op…
m… ma… and and in… ma…
% ad… en… %
ex… ex…
…
… $ 1… 3… % $ 5… $ 3… $ 9… 1… %
-
…
…
… 2… 1 2…
…
…
… 25 -3
…
…
…
…
… 35 35
…
…
…
…
… 2 1 -3
…
…
…
… 1 -1
…
…
…
…
… $ 2… 4… % $ 5… $ 3… $ 1… 2… %
…
Th…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Se… Re…
Gr… Gr… ge… de… Op… Op…
ma… ma… and and in… ma…
% ad… en… %
ex… ex…
As
r… $ 1,… 37… % $ 6… $ 2… $ 5… 1… %
-
G…
C… 156 1 1…
a…
A… 27
c…
R…
i…
a…
o… -12 -… 4
c…
a…
c…
P…
m… -9 -4 13
a…
L…
r…
a… -… 50
o…
l…
m…
C…
p… $ 1,… 39… % $ 5… $ 2… $ 8… 1… %
m…
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the
footnoted reconciling items.
17
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions)
Ni…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Se… Re…
Gr… Gr… ge… de… Op… Op…
ma… ma… and and in… ma…
% ad… en… %
ex… ex…
As
r… $ 4,… 36… % $ 1… $ 8… $ 2… 1… %
-
G…
A…
f… 421 2 4…
h…
e…
C… 177 1 1…
a…
A… 5 63
c…
R…
i…
a…
o… 85 -… 1…
c…
a…
c…
P…
m… -… -3 18
a…
L…
r…
a… 1 -1
o…
l…
m…
G…
on
s… -16 -…
of
a…
C…
p… $ 5,… 39… % $ 1… $ 8… $ 3… 2… %
m…
Ni…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Se… Re…
Gr… Gr… ge… de… Op… Op…
ma… ma… and and in… ma…
% ad… en… %
ex… ex…
As
r… $ 4,… 36… % $ 1… $ 8… $ 1… 1… %
-
G…
C… 495 4 1 4…
a…
A… 1 82
c…
R…
i…
a…
o… -15 -… 2
c…
a…
c…
P…
m… -… -6 26
a…
L…
r…
a… -… 57
o…
l…
m…
L…
on
s… 5 5
of
a…
C…
p… $ 4,… 38… % $ 1… $ 8… $ 2… 1… %
m…
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the
footnoted reconciling items.
18
Reconciliation of Non-GAAP Measures Corning Incorporated and Subsidiary
Companies
(Unaudited; in millions)
Three Nine
months months
ended ended
September September
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Cash
flows
from $ 1,061 $ 784 $ 3,140 $ 1,643
operating
activiti…
Realized
gains on
translat… $ 145 $ 85 $ 423 $ 192
earnings
contracts
and other
Adjusted
cash
flows $ 1,206 $ 869 $ 3,563 $ 1,835
from
operating
activiti…
Less:
Capital $ 545 $ 334 $ 1,299 $ 850
expendit…
Plus:
Proceeds
from $ 8
governme…
incentiv…
Adjusted
free cash $ 661 $ 535 $ 2,272 $ 985
flow
Core return on invested capital (“core ROIC”) is a non-GAAP measure used by
management and can be used by investors to review our investment and capital
allocation decisions. We define core ROIC as the after-tax core operating
income, inclusive of core equity earnings from affiliated companies, as a
percentage of invested capital, calculated as total equity plus total long-term
debt. Core ROIC for the three months ended September 30, 2026 and 2025 is
calculated by annualizing the after-tax return for the respective period.
Three months ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Core operating income(1) $ 1,152 $ 838
Core equity earnings in
affiliated $ 3 $ 3
companies(2)
Core operating income
before interest $ 1,155 $ 841
and taxes
Less: Income tax(3) $ 214 $ 164
Core operating income tax $ 941 $ 677
adjusted
Equity $ 14,288 $ 12,005
Debt $ 8,200 $ 8,219
Invested capital $ 22,488 $ 20,224
Core ROIC 16.7 % 13.4 %
(1) Refer to the reconciliation of operating income as reported in our GAAP
results to core operating income within the “Reconciliation of non-GAAP
measures.”
(2) There was no equity earnings in affiliated companies as of September 30,
2026 as reflected within other expense, net in the consolidated statements of
income and $1 million for the three months ended September 30, 2025. The
difference between equity earnings in affiliated companies as reported in our
GAAP results and as reflected as a non-GAAP core performance measure is an
adjustment for hedged exposures reporting for the three months ended September
30, 2026 and an adjustment for constant currency reporting for the three months
ended September 30, 2025, as described within “Core Performance Measures.”
(3) Income tax amounts are calculated based on the core effective tax rate of
18.5% and 19.5% for the three months ended September 30, 2026 and September 30,
2025, respectively.
19
Items Adjusted from GAAP Measures
Items adjusted from GAAP measures to arrive at core performance measures are as
follows:
(1) Adjustment for hedged exposures : Effective April 1, 2026, the Company
replaced its prior constant-currency adjustment with an adjustment for hedged
exposures. Because a significant portion of the Company’s revenues and expenses
are denominated in currencies other than the U.S. dollar, the Company maintains
a foreign currency risk management program whereby it hedges its exposure to the
Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan
dollar. Management uses the adjustment for hedged exposures for the Optical
Communications, Glass Innovations and Automotive segments to reflect the impact
of that program, as applicable to each segment. The most significant adjustment
relates to Japanese yen exposure within the Glass Innovations segment, which
primarily impacts net sales.
The prior constant-currency adjustment and the current adjustment for hedged
exposures are distinct non-GAAP adjustments determined using different
methodologies. Under the prior methodology, management-determined rates were
applied to all foreign currency exposures for which we were significantly hedged
during the applicable period, even though we may have been less than 100%
hedged. Under the current adjustment for hedged exposures, contractual hedge
rates are applied only to the portion of exposure actually hedged during the
applicable period, and the remaining unhedged exposure is reflected at the
exchange rates included in the Company’s consolidated GAAP results. The prior-
period amounts presented herein are the amounts as historically reported.
The table below presents the hedge rates used in calculating the adjustment for
hedged exposures and the percentage of exposure hedged for the three and nine
months ended September 30, 2026, and three months ended June 30, 2026.
Percentages are calculated relative to after-tax earnings exposure.
Curren…
Three
months
ended
Septem… South New
30, Japanese Mexican Chinese Korean Taiwan
2026 yen peso yuan won Euro dollar
──────────────────────────────────────────────────────────────────────────────
Hedge ¥120 MX$21 ¥6.8 ₩1,266 €0.87 NT$31
Rate
% of
Exposu… 94% 90% 93% 89% 92% 99%
Hedged
Nine
months
ended
Septem…
30,
2026(1)
Hedge ¥120 MX$21 ¥6.9 ₩1,262 €0.88 NT$31
Rate
% of
Exposu… 97% 95% 95% 97% 93% 98%
Hedged
Three
months
ended
June
30,
2026
Hedge ¥120 MX$20 ¥6.8 ₩1,269 €0.88 NT$31
Rate
% of
Exposu… 98% 94% 93% 100% 89% 95%
Hedged
(1) Prior to April 1, 2026, the core rate methodology was applied to all
relevant foreign exchange exposures; its effects are reflected in the hedge
rates and percentages of exposures hedged for the nine months ended September
30, 2026, as discussed and presented below.
Constant-currency adjustment : Prior to April 1, 2026, the constant-currency
rates used were as follows and were applied to all relevant foreign currency
exposures during the three months ended March 31, 2026 and three and nine months
ended September 30, 2025:
Japanese Mexican Chinese South New
Curren… yen peso yuan Korean Euro Taiwan
won dollar
Core ¥120 MX$21 ¥6.9 ₩1,250 €0.88 NT$31
Rate
(2) Translation of foreign denominated debt, net : Amount reflects the gain or
loss on the translation of our yen-denominated and euro-denominated debt to U.S.
dollars, net of gains or losses on related derivative instruments.
(3) Translated earnings contract, net : Amount reflects the impact of the
realized and unrealized gains and losses on our derivative instruments used to
hedge Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New
Taiwan dollar foreign currency exposure related to translated earnings.
(4) Acquisition-related costs : Amount reflects intangible amortization,
inventory valuation adjustments, contingent consideration adjustments and
external acquisition-related deal costs, as well as other transaction related
costs.
(5) Discrete tax items and other tax-related adjustments : Amount reflects
certain discrete period tax items such as changes in tax law, the impact of tax
audits, changes in tax reserves, changes in deferred tax asset valuation
allowances and stock compensation windfall or shortfall, as well as other tax-
related adjustments.
(6) Restructuring, impairment and other charges and credits : Amount reflects
certain restructuring, impairment losses and other charges and credits, as well
as other expenses, including severance, asset write-offs and facility repairs
resulting from power outages, which are not related to ongoing operations.
20
(7) Pension mark-to-market adjustment : Amount primarily reflects defined
benefit pension mark-to-market gains and losses, which arise from changes in
actuarial assumptions and the difference between actual and expected returns on
plan assets and discount rates.
(8) Loss on investments : Amount reflects the loss recognized on investments due
to mark-to-market adjustments for the change in fair value or the disposition of
an investment.
(9) Litigation, regulatory and other legal matters : Amount reflects
developments in commercial litigation, intellectual property disputes,
adjustments to our estimated liability for environmental-related items and other
legal matters.
(10) Gain or loss on sale of business : Amount reflects the gain or loss
recognized for the sale of a business, recorded in other expense, net, on the
consolidated statements of income.
(11) Gain or loss on sale of assets : Amount represents the gain or loss
recognized for the sale of assets, recorded in cost of sales, on the
consolidated statements of income.
(12) Equity in losses of affiliated companies : Amount reflects costs not
related to continuing operations of affiliated companies, such as restructuring,
impairment losses, inventory adjustments, and other charges and credits.
21