Corning Faces Guidance Challenges Despite Strong AI Data-Center Sales
Despite a significant increase in optical communications sales driven by demand for artificial intelligence (AI) data centers, Corning issued a third-quarter forecast below Wall Street expectations. Optical Communications revenue rose 32% to $2.07 billion during the second quarter of 2026, with Enterprise Networks sales surging 65%. However, production constraints and weaker smartphone demand limited growth projections. Corning's CEO Wendell Weeks noted that customer demand is outpacing manufacturing capacity for fiber products used in AI infrastructure. The company has secured major long-term contracts with Amazon and Nvidia to expand U.S.-based optical connectivity and fiber production by tenfold and over 50%, respectively, including new facilities in North Carolina and Texas. Investors reacted negatively, sending Corning's stock down more than 20% during the session. The company expects third-quarter core sales of $4.9 billion to $5 billion—16% growth from a year ago—but analysts had anticipated around $5 billion.
Tickers: $GLW
Topics: AI Data Centers Optical Communications Smartphone Demand Stock Performance