Key Highlights

● Corning announced a multi-year fibre and cable agreement with AT&T worth more than US$3 billion.

● Second-quarter core sales rose 17 per cent to US$4.74 billion.

● Optical Communications sales rose 32 per cent to US$2.07 billion in the second quarter.

● Springboard targets an annualised sales run rate of US$40 billion by the end of 2030.

AT&T agreement puts fibre demand in focus

Corning Incorporated (NYSE:GLW) announced on 29 September 2026 a multi-year agreement with AT&T (NYSE:T) worth more than US$3 billion, under which it will supply fibre and cable for AT&T's network expansion. According to the release, the products will be made at Corning's U.S. advanced manufacturing operations, including facilities in North Carolina.

AT&T says it plans to bring fast internet to 60 million Americans by the end of 2030 and expects to invest more than US$250 billion over five years in U.S. connectivity. The release also notes that the average AT&T Fiber household uses more than 1 terabyte a month, which AT&T expects to reach two to 2.5 terabytes by 2030. No exact contract term was given.

Latest reported results

Corning's most recent results are for the second quarter of 2026, released on 27 July 2026. Core sales rose 17 per cent year on year to US$4.74 billion, while core earnings per share rose 30 per cent to US$0.78. On a GAAP basis, sales were US$4.51 billion and earnings per share were US$0.64, up 19 per cent. Core operating margin was 20.9 per cent, up 190 basis points, and adjusted free cash flow was US$1.42 billion.

Optical Communications, the segment most relevant to the AT&T agreement, reported sales of US$2.07 billion, up 32 per cent, with net income of US$438 million, up 77 per cent. Solar sales rose 90 per cent to US$438 million, though it still recorded a net loss of US$7 million. Glass Innovations grew 1 per cent to US$1.46 billion, Automotive rose 2 per cent to US$471 million, and Life Sciences and Emerging Growth Businesses fell 15 per cent to US$294 million.

Guidance and the Springboard plan

For the third quarter, management guided to core sales growth of about 16 per cent, equivalent to US$4.9 billion to US$5.0 billion, and core earnings per share of US$0.85 to US$0.89. Management also expects the earnings impact from Solar to improve from the third quarter, and the company describes these as forecasts that remain subject to execution and market conditions.

The company has upgraded its Springboard plan, outlined at a May 2026 investor day. It now targets an annualised sales run rate of US$20 billion by the end of 2026, US$30 billion by the end of 2028 and US$40 billion by the end of 2030, implying a compound annual growth rate of 19 per cent from the fourth quarter of 2026 to the fourth quarter of 2030. Long-term supply agreements such as the AT&T arrangement are relevant to that trajectory, though the release does not quantify annual revenue from the deal.

Dividend and index membership

Corning is a constituent of the S&P 500, having been added in 1995 according to the published constituent list. The board declared a regular quarterly dividend of US$0.28 per share on 6 October 2026, payable on 11 December.

Optical demand and the Solar turnaround

Optical Communications is the segment that carries the AT&T agreement, and its second-quarter sales growth of 32 per cent stands well ahead of the group's 17 per cent core growth. Solar, which recorded a net loss of US$7 million despite a 90 per cent jump in sales, is the other piece of the story, with management expecting its earnings impact to improve from the third quarter.

Corning also remains exposed to cyclical end-markets. Glass Innovations grew just 1 per cent and Automotive 2 per cent, a long way behind the 32 per cent posted by Optical Communications.