Corning's Stock Plummets on Revenue Miss Despite Major Fiber Deals
Corning's stock plummeted 46% in July despite announcing several multibillion-dollar fiber commitments from top tech companies, including Amazon, Nvidia, and Verizon. The company's shares fell from $254.95 to $137.99 between June 30 and July 31, making it one of the worst monthly stretches in its modern history.
The decline occurred despite Corning delivering a fifth consecutive earnings per share (EPS) beat and free cash flow jumping 256%. The company also reported that its Gen AI product sales nearly doubled year over year. However, a 2.69% revenue miss triggered the selloff.
Corning's CEO Wendell Weeks stated that the company expects to reach an annualized sales run rate of $20 billion by the end of 2026, $30 billion by the end of 2028, and $40 billion by the end of 2030. The company has guided Q3 core sales to $4.90 billion to $5.00 billion, roughly 16% year-over-year growth, and core EPS to $0.85 to $0.89, roughly 28% year-over-year growth.
The Verizon deal, which arrived on top of Amazon and Nvidia agreements, is seen as a chance for the market to reassess whether Corning's AI fiber order book was the real signal all along. The company's stock has since recovered, up 13.01% over the past week and 7.44% over the past month.