CORNING INC /NY

Previous wording

We expect core net sales of approximately $4.2 billion for the third quarter of 2025.

Current wording

We expect core net sales of approximately $4.35 billion for the fourth quarter of 2025.

Previous wording

For the three months ended June 30, 2025, net sales increased $611 million, or 19% when compared to the same period in 2024. This was primarily driven by an increase in sales for optical communication products of $453 million, specialty materials products of $45 million, polycrystalline silicon products of $24 million and display products of $21 million.

Current wording

For the three months ended September 30, 2025, net sales increased $709 million, or 21% when compared to the same period in 2024. This was primarily driven by an increase in sales for optical communication products of $406 million, polycrystalline silicon products of $91 million, specialty materials products of $74 million and display products of $66 million.

Previous wording

For the six months ended June 30, 2025, net sales increased $1.1 billion, or 17% when compared to the same period in 2024. This was primarily driven by an increase in sales for optical communication products of $878 million, display products of $93 million and specialty materials products of $90 million.

Current wording

For the nine months ended September 30, 2025, net sales increased $1.8 billion, or 19% when compared to the same period in 2024. This was primarily driven by an increase in sales for optical communication products of $1.3 billion, specialty materials products of $164 million, display products of $159 million and polycrystalline silicon products of $105 million.

Previous wording

For the three months ended June 30, 2025, cost of sales increased $168 million, or 7%, when compared to the same period in 2024, primarily driven by the increase in net sales as discussed above. Gross margin increased $443 million, or 47%, and increased as a percentage of sales by 7 percentage points when compared to the same period in 2024 driven by the impact of actions taken by management to improve profitability, including raising prices, restoring our productivity levels and normalizing inventory levels.

Current wording

For the three months ended September 30, 2025, cost of sales increased $326 million, or 14%, when compared to the same period in 2024, primarily driven by the increase in net sales as discussed above. Gross margin increased $383 million, or 34%, and increased as a percentage of sales by 3 percentage points when compared to the same period in 2024 driven by higher volume and the impact of actions taken by management to improve profitability, including raising prices, managing costs and restoring our productivity.

Previous wording

For the six months ended June 30, 2025, cost of sales increased $424 million, or 10%, when compared to the same period in 2024, primarily driven by the increase in net sales as discussed above. Gross margin increased $664 million, or 34%, and increased as a percentage of sales by 5 percentage points when compared to the same period in 2024 driven by the impact of actions taken by management to improve profitability, including raising prices, restoring our productivity levels and normalizing inventory levels.

Current wording

For the nine months ended September 30, 2025, cost of sales increased $750 million, or 11%, when compared to the same period in 2024, primarily driven by the increase in net sales as discussed above. Gross margin increased $1.0 billion, or 34%, and increased as a percentage of sales by 4 percentage points when compared to the same period in 2024 driven by the impact of actions taken by management to improve profitability, including raising prices, restoring our productivity levels and normalizing inventory levels.

Previous wording

For the three and six months ended June 30, 2025, selling, general and administrative expenses increased $44 million and $64 million, respectively, when compared to the same periods in 2024, primarily due to the increase in net sales, as discussed above.

Current wording

For the three and nine months ended September 30, 2025, selling, general and administrative expenses increased $114 million and $178 million, respectively, when compared to the same periods in 2024, primarily due to the increase in net sales, as discussed above, and an increase in variable compensation and legal related expenses.

Previous wording

For the three and six months ended June 30, 2025, research, development and engineering expenses increased $14 million and $26 million, respectively and slightly decreased as a percentage of sales when compared to the same periods in 2024.

Current wording

For the three and nine months ended September 30, 2025, research, development and engineering expenses decreased $14 million and increased $12 million, respectively and remained consistent as a percentage of sales when compared to the same periods in 2024.

Previous wording

Included in translated earnings contract gain, net, is the impact of foreign currency contracts which economically hedge the translation exposure arising from movements in the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro and its impact on net income.

Current wording

Included in translated earnings contract gain (loss), net, is the impact of foreign currency contracts which economically hedge the translation exposure arising from movements in the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro and its impact on net income (loss).

Previous wording

The following table provides detailed information on the impact of translated earnings contract gain, net (in millions):

Current wording

The following table provides detailed information on the impact of translated earnings contract gain (loss), net (in millions):

Previous wording

(1)For the three and six months ended June 30, 2025, amount includes non-cash pre-tax realized losses of $68 million and $108 million, respectively, and for the three and six months ended June 30, 2024, amount includes non-cash pre-tax realized losses of $26 million and $57 million, respectively, related to the premiums of expired option contracts.

Current wording

(1)For the three and nine months ended September 30, 2025, amount includes non-cash pre-tax realized losses of $94 million and $202 million, respectively, and for the three and nine months ended September 30, 2024, amount includes non-cash pre-tax realized losses of $24 million and $81 million, respectively, related to the premiums of expired option contracts.

Previous wording

(2)For the three and six months ended June 30, 2025, amount excludes $8 million loss related to forward contracts designated as a net investment hedge, which was recorded in accumulated other comprehensive loss on the consolidated balance sheets and reflected within investing activities in the consolidated statements of cash flows.

Current wording

(2)For the three and nine months ended September 30, 2025, amount excludes losses of $4 million and $12 million, respectively, related to forward contracts designated as a net investment hedge, which was recorded in accumulated other comprehensive loss on the consolidated balance sheets and reflected within investing activities in the consolidated statements of cash flows.

Previous wording

The impact to income from realized activity for the three months ended June 30, 2025 was primarily driven by realized losses from our South Korean won-denominated hedges, partially offset by realized gains from our Mexican peso-denominated hedges. The impact to income from realized activity for the six months ended June 30, 2025 was primarily driven by realized gains from our Mexican peso and Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won-denominated hedges. The impact to income for the three and six months ended June 30, 2024 was primarily driven by realized gains from our Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won-denominated hedges.

Current wording

The impact to income from realized activity for the three months ended September 30, 2025 was primarily driven by realized losses from our South Korean won and Japanese yen-denominated hedges, partially offset by realized gains from our Mexican peso-denominated hedges. The impact to income from realized activity for the nine months ended September 30, 2025 was primarily driven by realized gains from our Mexican peso and Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won and Chinese yuan-denominated hedges.

Previous wording

The impact to income from unrealized activity for the three and six months ended June 30, 2025 was primarily driven by unrealized gains from our South Korean won and new Taiwan dollar-denominated hedges, partially offset by unrealized losses from our Japanese yen and euro-denominated hedges. The impact to income for the three months ended June 30, 2024 was primarily driven by unrealized losses from our South Korean won-denominated hedges. The impact to income for the six months ended June 30, 2024 was primarily driven by unrealized losses from our South Korean won and new Taiwan dollar-denominated hedges, partially offset by unrealized gains from our Japanese yen-denominated hedges.

Current wording

The impact to income from unrealized activity for the three months ended September 30, 2025 was primarily driven by unrealized gains from our Japanese yen, Mexican peso and euro-denominated hedges, partially offset by unrealized losses from our new Taiwan dollar and South Korean won-denominated hedges. The impact to income from unrealized activity for the nine months ended September 30, 2025 was primarily driven by unrealized gains from our South Korean won, Mexican peso, new Taiwan dollar and Chinese yuan-denominated hedges, partially offset by unrealized losses from our euro and Japanese yen-denominated hedges.

Previous wording

For the three and six months ended June 30, 2025, income before income taxes increased $412 million and $356 million, respectively, when compared to the same periods in 2024, primarily driven increases in gross margin, as discussed above, and gains on our translated earnings contracts, as discussed above.

Current wording

For the three and nine months ended September 30, 2025, income before income taxes increased $642 million and $998 million, respectively, when compared to the same periods in 2024, primarily driven by increases in gross margin, as discussed above, and gains on our translated earnings contracts, partially offset by increases in selling, general and administration expenses, as discussed above.

Previous wording

For the three and six months ended June 30, 2025, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to foreign derived intangible income, adjustments to share-based compensation and non-taxable items, partially offset by certain pre-tax losses with no corresponding expected tax benefit.

Current wording

For the three and nine months ended September 30, 2025, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to foreign derived intangible income, adjustments to share-based compensation and non-taxable items, partially offset by certain pre-tax losses with no corresponding expected tax benefit.

Previous wording

For the three and six months ended June 30, 2024, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to certain pre-tax losses with no corresponding expected tax benefit. The losses were mostly driven by asset write-offs associated with the closure of a display manufacturing plant. Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) for additional information.

Current wording

For the three months ended September 30, 2024, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to certain pre-tax losses with no corresponding expected tax benefit, changes in estimates based on the final 2023 U.S. Federal Income Tax Return and the impact of foreign exchange losses. For the nine months ended September 30, 2024, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to certain pre-tax losses with no corresponding expected tax benefit.

Previous wording

For the three and six months ended June 30, 2025, the effective tax rate differed when compared to the same periods in 2024 primarily due to foreign derived intangible income, adjustments to share-based compensation and non-taxable items, partially offset by certain pre-tax losses with no corresponding expected tax benefit.

Current wording

For the three months ended September 30, 2025, the effective tax rate differed when compared to the same period in 2024 primarily due to changes in certain pre-tax losses with no corresponding expected tax benefit and foreign exchange gains and losses, partially offset by foreign derived intangible income, adjustments to share-based compensation and non-taxable items. For the nine months ended September 30, 2025, the effective tax rate differed when compared to the same period in 2024 primarily due to foreign derived intangible income, adjustments to share-based compensation, and non-taxable items, partially offset by certain pre-tax losses with no corresponding expected tax benefit.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes various tax law changes, including the permanent extension of certain provisions originally enacted under the Tax Cuts and Jobs Act, modifications to the international tax framework and the reinstatement of favorable treatment for certain business tax provisions. These include 100% bonus depreciation, immediate expensing of domestic research and development costs and revised limitations on the deductibility of business interest expense. The provisions of the OBBBA are subject to multiple effective dates, with some effective beginning in 2025 and others phased in through 2027. The Company is currently evaluating the provisions of the OBBBA and is assessing the potential impact on its consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes various tax law changes, including the permanent extension of certain provisions originally enacted under the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework and the reinstatement of favorable treatment for certain business tax provisions. These include 100% bonus depreciation, immediate expensing of domestic research and development costs and revised limitations on the deductibility of business interest expense. The provisions of the OBBBA are subject to multiple effective dates, with some effective beginning in 2025 and others phased in through 2027. The Company evaluated the provisions of the OBBBA and does not expect the impact to be material on our estimated annual effective tax rate in 2025.

Previous wording

Financial results for the reportable segments are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker (“CODM”) in making internal operating decisions, which is more fully discussed within Note 16 (Reportable Segments) in the accompanying notes to the consolidated financial statements and includes a reconciliation of segment information to the corresponding amounts in the consolidated statements of income.

Current wording

Financial results for the reportable segments and Hemlock and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker (“CODM”) in making internal operating decisions, which is more fully discussed within Note 16 (Reportable Segments) in the accompanying notes to the consolidated financial statements and includes a reconciliation of segment information to the corresponding amounts in the consolidated statements of income (loss).

Previous wording

As of January 1, 2025, the Company began managing its Automotive Glass Solutions business together with its Environmental Technologies business, forming the Automotive segment. In addition, the Display Technologies segment has been renamed to Display.

Current wording

As of January 1, 2025, the Company began managing its Automotive Glass Solutions business together with its Environmental Technologies business, forming the Automotive segment. In addition, the Display Technologies segment has been renamed to Display. The segment information presented below has been recast for the comparative period presented for the Automotive segment.

Previous wording

The following table presents segment net sales by reportable segment (in millions):

Current wording

The following table presents segment net sales by reportable segment and Hemlock and Emerging Growth Businesses (in millions):

Previous wording

The increase in segment net sales for both the three and six month periods was primarily due to continued growth in our Enterprise business driven by strong demand for our Generative AI products, and in our Carrier business, driven by demand for datacenter interconnect products and fiber-to-the-home products.

Current wording

The increase in segment net sales for both the three- and nine-month periods was primarily due to continued growth in our Enterprise business driven by strong demand for our Generative AI products, and in our Carrier business, driven by demand for datacenter interconnect products and fiber-to-the-home products.

Previous wording

The decrease in segment net sales for both the three and six month periods was due to lower sales volume, attributable to reduced panel maker utilization in the second quarter of 2025, partially offset by pricing actions taken in the second half of 2024. The pricing actions offset the majority of the impact from resetting our core rate from 107 to 120 Japanese yen to USD. The comparative period results were not recast and are presented at the 107 Japanese yen to USD core rate.

Current wording

The decrease in segment net sales for both the three- and nine-month periods was due to the impact from resetting our core rate from 107 to 120 Japanese yen to USD as the comparative period results were not recast and are presented at the 107 Japanese yen to USD core rate. The impact from resetting our core rate was partially offset by pricing actions taken in the second half of 2024.

Previous wording

The increase in segment net sales for both the three and six month periods was due to continued strong demand for premium glass for mobile devices.

Current wording

The increase in segment net sales for both the three- and nine-month periods was due to continued strong demand for premium glass for mobile devices.

Previous wording

The decrease in segment net sales for both the three and six month periods was primarily due to continued softness in light-duty and heavy-duty markets, particularly in Europe and North America.

Current wording

The increase in segment net sales for the three-month period was primarily due to positive momentum in the global passenger vehicle market driven by China as well as growth in demand for premium content. The decrease in segment net sales for the nine-month period was primarily due to softness in light-duty and heavy-duty markets, particularly in Europe and North America.

Previous wording

The increase for both the three and six month periods was primarily due to higher sales in our HSG business and Pharmaceutical Technologies business.

Current wording

The increase in segment net sales for both the three- and nine-month periods was primarily due to higher sales in our solar businesses, including HSG.

Previous wording

The following table presents segment net income by reportable segment (in millions):

Current wording

The following table presents segment net income by reportable segment and Hemlock and Emerging Growth Businesses (in millions):

Previous wording

The increase in segment net income for both the three and six month periods was primarily driven by strong incremental profit on higher sales volume, as outlined above.

Current wording

The increase in segment net income for both the three- and nine-month periods was primarily driven by strong incremental profit on higher sales volume, as outlined above.

Previous wording

The increase in segment net income for the three month period was primarily driven by improved performance within our automotive glass business, partially offset by decreased sales of our environmental technologies business, as outlined above, offset by our automotive glass business. Segment net income remained flat for the six month period when compared to the same period in 2024 with improved performance offsetting lower sales, as outlined above.

Current wording

The decrease in segment net income for the three-month period was primarily driven by the decrease in sales, as outlined above. Segment net income remained flat for the nine-month period when compared to the same period in 2024 with improved performance offsetting lower sales, as outlined above.

Previous wording

The increase in segment net income for both the three and six month periods was primarily driven by increased sales, as outlined above, and strong incremental profit on higher volumes.

Current wording

The increase in segment net income for both the three- and nine-month periods was primarily driven by increased sales, as outlined above, and strong incremental profit on higher volumes.

Previous wording

The decrease in segment net income for both the three and six month periods was primarily driven by temporarily higher costs to ramp up for our new solar products.

Current wording

The decrease in segment net income for both the three- and nine-month periods was primarily driven by temporarily higher costs to ramp up for our new solar products.

Previous wording

For the three months ended June 30, 2025, we generated core net sales of $4.0 billion compared to $3.6 billion for the same period in 2024. The increase in core net sales of $441 million was primarily driven by increased segment sales of $453 million in Optical Communications, partially offset by decreased segment sales of $116 million in Display. Net sales by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Current wording

For the three months ended September 30, 2025, we generated core net sales of $4.3 billion compared to $3.7 billion for the same period in 2024. The increase in core net sales of $539 million was primarily driven by increased segment sales of $406 million in Optical Communications and $73 million in Specialty Materials, partially offset by decreased segment sales of $76 million in Display. Net sales by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Previous wording

For the six months ended June 30, 2025, we generated core net sales of $7.7 billion compared to $6.9 billion for the same period in 2024. The increase in core net sales of $862 million was primarily driven by increased segment sales of $878 million in Optical Communications and $91 million in Specialty Materials, partially offset by decreased segment sales of $83 million in Display and $70 million in Automotive. Net sales by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Current wording

For the nine months ended September 30, 2025, we generated core net sales of $12.0 billion compared to $10.6 billion for the same period in 2024. The increase in core net sales of $1.4 billion was primarily driven by increased segment sales of $1.3 billion in Optical Communications and $164 million in Specialty Materials, partially offset by decreased segment sales of $159 million in Display and $46 million in Automotive. Net sales by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Previous wording

For the six months ended June 30, 2025, we generated core net income of $990 million compared to $737 million for the same period in 2024. The increase of $253 million was primarily due to higher segment net income of $205 million in Optical Communications. Net income by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Current wording

For the three months ended September 30, 2025, we generated core net income of $585 million compared to $465 million for the same period in 2024. The increase of $120 million was primarily due to higher segment net income of $120 million in Optical Communications and $41 million in Specialty Materials, partially offset by decreased segment net income of $35 million in Display. Net income by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Previous wording

For the three months ended June 30, 2025, we generated core net income of $523 million compared to $407 million for the same period in 2024. The increase of $116 million was primarily due to higher segment net income of $104 million in Optical Communications. Net income by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Current wording

For the nine months ended September 30, 2025, we generated core net income of $1.6 billion compared to $1.2 billion for the same period in 2024. The increase of $373 million was primarily due to higher segment net income of $325 million in Optical Communications and $89 million in Specialty Materials. Net income by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Previous wording

Core earnings per share increased for the three months ended June 30, 2025 to $0.60 per share, primarily as a result of the changes in core net income, outlined above.

Current wording

Core earnings per share increased for the three months ended September 30, 2025 to $0.67 per share, primarily as a result of the changes in core net income, outlined above.

Previous wording

Core earnings per share increased for the six months ended June 30, 2025 to $1.14 per share, primarily as a result of the changes in core net income, outlined above.

Current wording

Core earnings per share increased for the nine months ended September 30, 2025 to $1.81 per share, primarily as a result of the changes in core net income, outlined above.

Previous wording

We utilize certain financial measures and key performance indicators that are not calculated in accordance with GAAP to assess our financial and operating performance. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the consolidated statements of income or statements of cash flows, or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable measure as calculated and presented in accordance with GAAP in the consolidated statements of income or statements of cash flows.

Current wording

We utilize certain financial measures and key performance indicators that are not calculated in accordance with GAAP to assess our financial and operating performance. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the consolidated statements of income (loss) or statements of cash flows, or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable measure as calculated and presented in accordance with GAAP in the consolidated statements of income (loss) or statements of cash flows.

Previous wording

(b)The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $59 million and $61 million respectively.

Current wording

(b)The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $56 million and $61 million, respectively.

Previous wording

(1)Constant-currency adjustment: As a significant portion of revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. The Company utilizes constant-currency reporting for Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts. For the three and six months ended June 30, 2025 and 2024, the constant-currency adjustment primarily relates to our Japanese yen exposure due to the difference in the average spot rate compared to our core rate.

Current wording

(1)Constant-currency adjustment: As a significant portion of revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. The Company utilizes constant-currency reporting for Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts. For the three and nine months ended September 30, 2025 and 2024, the constant-currency adjustment primarily relates to our Japanese yen exposure due to the difference in the average spot rate compared to our core rate.