Corning Upgrades Springboard Plan to $11B After Record Q4, Inks $6B Meta Deal for AI Fiber
January 28, 2026 · by Fintool Agent
Corning-4.97% is raising its Springboard growth ambitions after delivering record Q4 results and securing a multi-billion dollar deal with Meta-0.63% that underscores surging demand for AI data center infrastructure.
The specialty glass and fiber optics maker reported Q4 sales of $4.41 billion—up 14% year-over-year—and EPS of $0.72, beating consensus estimates of $0.71 on $4.36 billion in revenue. More significantly, Corning achieved its 20% operating margin target a full year ahead of schedule and upgraded its long-term sales target to add $11 billion in incremental revenue by 2028, up from the original $8 billion plan.
Shares jumped 7.5% on Monday after Corning announced the Meta agreement, but gave back some gains Tuesday, closing down 3.4% to $104.28 despite the earnings beat—a "sell the news" reaction after the stock had already rallied more than 75% over the past year.
The Meta Deal: A Template for AI Infrastructure
The centerpiece announcement was a multiyear agreement worth up to $6 billion with Meta for Corning's newest Gen AI optical products. The deal positions Meta as an anchor customer for Corning's expanded manufacturing operations in North Carolina, including a new optical cable facility in Hickory.
CEO Wendell Weeks framed the agreement as a model Corning is replicating across its hyperscaler customer base. "We are concluding similar long-term agreements with other major customers to dedicate capacity for them as well," Weeks said on the earnings call. He noted these additional deals are "of a similar size and scale" to Meta, though the financial impact won't materialize until 2027 as new capacity comes online.
The structure mirrors Corning's successful approach in display glass—customer prepayments and stringent long-term commitments that share risk while securing revenue streams. Weeks drew an explicit parallel to Apple's $2.5 billion commitment to produce iPhone and Apple Watch cover glass in Corning's Kentucky facility.
Ask Fintool AI AgentOptical Communications: The Growth Engine
Corning's Optical Communications segment delivered the standout performance, with Q4 sales of $1.7 billion—up 24% year-over-year—and net income of $305 million, up 57%. For the full year, segment revenue reached $6.3 billion, representing 35% growth.
The enterprise business, which captures sales for inside data centers, grew 61% for the year. The hyperscale data center portion grew at nearly double that rate.
| Metric | Q4 2024 | Q4 2025 | YoY Change |
|---|---|---|---|
| Optical Communications Revenue | $1.37B | $1.70B | +24% |
| Optical Communications Net Income | $194M | $305M | +57% |
| Net Income Margin | 14.2% | 18.0% | +380 bps |
Data from earnings release
When asked about supply constraints, Weeks made a distinction that illustrates Corning's competitive position: "There is enough fiber in the world to meet demand," he said. "What our capacity expansions are about is our new high-density products in fiber, in cable, and in connectivity. For those, we are experiencing very, very robust demand... If we could make more of these new products, we could sell more."
These high-density solutions enable two to four times the fiber capacity in existing conduit with significantly reduced installation costs—advantages that should support pricing power as demand scales.
Springboard: Two Years of Transformation
The Springboard plan, launched in Q4 2023, has fundamentally reshaped Corning's financial profile. The company hit its original milestones early and is now pursuing more aggressive targets.
| Metric | Q4 2023 (Launch) | Q4 2025 | Change |
|---|---|---|---|
| Operating Margin | 16.3% | 20.2% | +390 bps |
| Core EPS | $0.39 | $0.72 | +85% |
| ROIC | 8.6% | 14.2% | +540 bps |
| Free Cash Flow (Annual) | $880M | $1.72B | +96% |
Source: Earnings call
The upgraded Springboard targets include:
- 2028 Goal: Add $11 billion in incremental annualized sales (up from $8B original target)
- 2026 Internal Plan: Add $6.5 billion in incremental sales (up from $6B)
- 2026 High-Confidence Plan: Add $5.75 billion (up significantly from $4B)
CFO Ed Schlesinger put the scale in perspective: "When we started Springboard in Q4 2023, our annualized sales run rate was $13.1 billion. Delivering our internal Springboard plan puts our annualized sales run rate at $24 billion by the end of 2028. We almost double our sales run rate over this time period."
Ask Fintool AI AgentBeyond Optical: A Multi-Segment Story
While Optical Communications dominates the growth narrative, Corning's diversified model provides stability:
Display Technologies: The segment delivered $993 million in net income for 2025 with a 27% margin, exceeding the $900-950 million target. Management expects this profitability level to hold, with hedges in place through 2030 against yen weakness.
Specialty Materials: Sales grew 10% to $2.2 billion in 2025, with net income up 41% to $367 million. The expanded Apple partnership creates a larger, longer-term growth driver.
Solar (Hemlock): Q4 sales jumped 62% year-over-year as Corning ramps capacity for its solar market-access platform. The company is targeting $2.5 billion in solar revenue by 2028 with margins at or above the corporate average.
Q1 Guidance and Investment Thesis
For Q1 2026, Corning expects year-over-year growth to accelerate:
- Sales: $4.2-4.3 billion (up ~15% YoY)
- EPS: $0.66-0.70 (up ~26% YoY)
Capital expenditures will rise to approximately $1.7 billion in 2026, up from $1.3 billion in 2025, with Optical Communications as a primary destination. Customer prepayments and commitments will help offset some of this investment.
The company has resumed share repurchases—it bought back 800 million shares over the past decade, reducing the share count by nearly 50%—and expects buybacks to continue as cash generation improves.
What to Watch
Near-term catalysts:
- Finalization of additional hyperscaler capacity agreements "of similar size and scale" to Meta
- Solar ramp progress through 2026 (currently a ~$0.03-0.05 EPS drag)
- Susquehanna Tech Conference (Feb 27) and Morgan Stanley Tech Conference (Mar 3) for management updates
Longer-term optionality:
- Co-packaged optics (CPO) opportunity not yet included in Springboard projections—could add upside in 2027-2028
- Potential pricing power as mix shifts toward higher-value Gen AI products
As Corning marks its 175th anniversary, management believes the company is positioned to nearly double its revenue run rate by 2028—a remarkable growth story for a $94 billion market cap industrial.
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