Corning (GLW) Q3 2024 earnings summary

Executive summary

• Q3 2024 core sales grew 8% year-over-year to $3.73 billion, with core EPS up 20% to $0.54 and core operating margin expanding to 18.3%.

• Optical Communications led growth, with Q3 sales up 36% to $1.25 billion and enterprise subsegment up 55% year-over-year, driven by demand for generative AI products and a $1B+ multiyear AT&T agreement.

• The company is progressing ahead of its Springboard plan, targeting $3B+ in annualized sales growth and a 20% operating margin by end of 2026.

• Display Technologies implemented price increases and expects 2025 segment net income of $900M–$950M, maintaining a 25% margin.

• Q3 2024 GAAP net loss was $117 million, mainly due to significant foreign currency losses, while core net income was $465 million.

Financial highlights

• Q3 2024 core sales: $3.73B (+8% YoY); GAAP sales: $3.39B (+7% YoY).

• Core EPS: $0.54 (+20% YoY); GAAP EPS: $(0.14).

• Core operating margin: 18.3% (up 160 bps YoY); core gross margin: 39.2% (up 220 bps YoY).

• Adjusted free cash flow: $553M in Q3 2024 (up from $466M in Q3 2023).

• Core net income: $465M (+20% YoY); GAAP net loss: $117M.

Outlook and guidance

• Q4 2024 core sales expected at ~$3.75B (up ~15% YoY); core EPS expected in the range of $0.53–$0.57 (up ~40% YoY).

• Springboard plan targets $3B+ incremental annualized sales and 20% operating margin by 2026.

• Optical Communications Enterprise business expected to grow at a 25% CAGR over the next four years, with BEAD program momentum in H2 2025.

• Display Technologies segment net income for 2025 projected at $900–$950M, with a 25% margin.

• Management expects EPS growth to outpace sales growth in Q4.