Corning Reports Strong Free Cash Flow Results Despite Stock Decline
Despite Corning Inc.'s (GLW) strong Q2 free cash flow results, the stock has fallen to a six-month low amid unusual put option activity. The company reported revenue of $4.5 billion and adjusted FCF of $1.423 billion in Q2—up 16.6% and 215.5%, respectively—from data center-related demand and infrastructure capex, including deals with Amazon (AMZN) and Nvidia (NVDA). Free cash flow margins rose to 31.6% for the quarter from just under 14% a year ago. Analysts project continued growth in revenue and FCF through 2027, suggesting potential upside for GLW's fair market value based on current yield assumptions. The stock is trading at $124.64 as of July 29, but analysts' average price targets are above $215, significantly higher than the current level.
Topics: corporate performance free cash flow options trading short puts