CORNING INC /NY
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
GLW$106.13+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0000024741-26-000205
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0000024741-26-000255
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 212 previous paragraphs and 230 current paragraphs.
144 unchanged; 45 reworded; 35 added; 23 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 12 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
•Overview and Outlook
Current report
OVERVIEW AND OUTLOOK
Current report
As we continue to execute our Springboard strategy, we intend to pursue additional growth opportunities while focusing on profitable growth, higher returns on invested capital, and increased free cash flow generation. We expect to invest in capacity expansion and technology capabilities where appropriate to support customer demand and our long-term strategic objectives, while maintaining disciplined capital allocation and risk-sharing approaches designed to support attractive returns, even as we invest to capture additional growth.
Current report
For the three and six months ended June 30, 2026, selling, general and administrative expenses increased $93 million and $210 million, respectively, and remained consistent as a percentage of sales when compared to the same periods in 2025. The increase was primarily due to higher share-based compensation expense, as the rise in the Company’s stock price increased the fair value of performance-based restricted stock units.
Current report
Translated earnings contract gain, net
Current report
(3)For the three and six months ended June 30, 2026, amount excludes pre-tax gain of $6 million, related to forward contracts for the settlement of €300 million euro-denominated debt, which was reflected within investing activities on the consolidated statements of cash flows.
Current report
Since issuance of the Company’s Japanese yen-denominated debt, depreciation of the Japanese yen has reduced the U.S. dollar value of such obligations and generating unrealized foreign exchange gains that have been recognized over time in the consolidated statements of income. During the second quarter of 2026, the Company entered into a cross-currency swap contract related to ¥15 billion of the Company’s Japanese yen-denominated debt in order to economically lock in unrealized foreign exchange gains.
Current report
(1)Segment results for the comparative prior period as presented in the table above are the amounts as historically reported and adjusted only for the changes in segment reporting structure as described above. The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies and reflect different foreign currency hedging approaches in the periods presented. Prior-period amounts have not been recast to the current-period presentation. Application of the current adjustment for hedged exposures in place of the prior constant-currency adjustment for the comparative 2025 periods would have resulted in higher year-over-year growth rates for segment net sales for our Glass Innovations segment for the three and six months ended June 30, 2026. The impact to segment net sales for all other segments would have been immaterial.
Current report
The increase in segment net sales for both the three and six month periods was primarily driven by the adoption of our auto glass solutions.
Current report
The decrease in segment net sales for both the three and six month periods was primarily driven by our Pharmaceutical Technologies business.
Current report
*Not meaningful
Current report
(1)Segment results for the comparative prior period as presented in the table above are the amounts as historically reported and adjusted only for the changes in segment reporting structure as described above. The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies and reflect different foreign currency hedging approaches in the periods presented. Prior-period amounts have not been recast to the current-period presentation. Application of the current adjustment for hedged exposures in place of the prior constant-currency adjustment for the comparative 2025 periods would have resulted in higher year-over-year growth rates for segment net income for our Glass Innovations segment for the three and six months ended June 30, 2026. The impact to segment net income for all other segments would have been immaterial.
Current report
The increase in segment net income for both the three and six month periods was primarily driven by increased sales, as outlined above, and profit on higher volumes.
Current report
The decrease in segment net income for both the three and six month periods was primarily driven by temporarily higher costs to ramp up capacity.
Current report
The decrease in segment net income for both the three and six month periods was primarily driven by our Pharmaceutical Technologies business.
Current report
Management uses non-GAAP financial measures (our “core performance measures”), together with GAAP financial measures, to evaluate operating performance, make financial and operational decisions, and allocate resources. Management believes that core performance measures, when considered together with the Company’s GAAP results, provide investors with useful supplemental information by facilitating a functional view of operating results and providing additional insight into factors and trends affecting the Company’s performance.
Current report
Specifically, in managing the Company and assessing our financial performance, we supplement certain measures included in our consolidated financial statements by excluding specific items and making certain adjustments to arrive at our core performance measures. These measures are intended to supplement, and should not be viewed as a substitute for, the Company’s GAAP financial measures.
Current report
Prior to April 1, 2026, we included an adjustment to derive our core performance measures that utilized long-term management-determined core rates, which were used in our presentation of the “constant-currency adjustment.” These core rates were applied to all foreign currency exposures for which we were significantly hedged during the applicable period, even though we may have been less than 100% hedged.
Current report
Effective April 1, 2026, we prospectively replaced constant-currency reporting with a new non-GAAP adjustment, which we refer to as our “adjustment for hedged exposures” as discussed in more detail below. The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies.
Current report
The adjustment for hedged exposures is calculated by applying our hedge rates (as defined below) to the portion of foreign currency exposure that is hedged by the Company’s hedging instruments during the applicable period. These hedging instruments include our translated earnings contracts and non-derivative instruments such as foreign-denominated debt. The identification of hedged exposures is consistent with the Company’s documented foreign exchange risk management practices. The remaining portion of foreign currency exposure that is not hedged is not adjusted and continues to be reflected at the exchange rates used in the Company’s consolidated GAAP results during the applicable period. The currency rates used in calculating this adjustment for hedged exposures (our “hedge rates”) reflect the weighted average of the contractual exchange rates of the Company’s hedging instruments in place for foreign currency exposure for the applicable period. The realized and unrealized gains or losses from our translated earnings contracts and non-derivative instruments are excluded from our core performance measures in our GAAP to core reconciliation, and we include the adjustment for hedged exposures to reflect the underlying hedge rates related to these hedging instruments. The adjustment for hedged exposures, when applied to net sales, reflects only the impact of foreign currency exchange rate movements on the hedged portion of exposure.
Current report
Management believes the adjustment for hedged exposures provides investors with useful supplemental information regarding operating performance by reflecting the effect of the Company’s foreign currency risk management program on the portion of exposure actually hedged during the applicable period.
Current report
amounts)(1):
Current report
(1)Core performance measures for the comparative prior period as presented in the table above are the amounts as historically reported. The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies and reflect different foreign currency hedging approaches in the periods presented. Prior-period amounts have not been recast to the current-period presentation. Application of the current adjustment for hedged exposures in place of the prior constant-currency adjustment for the comparative 2025 periods would have resulted in higher year-over-year growth rates for core net sales, core net income and core earnings per share for the three and six months ended June 30, 2026.
Current report
For the six months ended June 30, 2026, we generated core net sales of $9.1 billion compared to $7.7 billion for the same period in 2025. The increase in core net sales of $1.4 billion was primarily driven by increased segment sales of $997 million in Optical Communications and $371 million in Solar. Net sales of reportable segments and Life Sciences and Emerging Growth Businesses are discussed in detail in the “Segment Analysis” section of our MD&A.
Current report
For the six months ended June 30, 2026, we generated core net income of $1.3 billion compared to $990 million for the same period in 2025. The increase of $302 million was primarily due to higher segment net income of $377 million in Optical Communications, partially offset by increased variable compensation and higher costs to ramp up capacity in Solar. Net income of reportable segments and Life Sciences and Emerging Growth Businesses is discussed in detail in the “Segment Analysis” section of our MD&A.
Current report
(b)The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $50 million and $51 million, respectively.
Current report
(b)The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $31 million and $32 million, respectively.
Current report
(b)The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $87 million and $89 million respectively.
Current report
(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 report
(1)Adjustment for hedged exposures: Effective April 1, 2026, the Company replaced its prior constant-currency adjustment with an adjustment for hedged exposures. Because a significant portion of the Company’s revenues and expenses are denominated in currencies other than the U.S. dollar, the Company maintains a foreign currency risk management program whereby it hedges its exposure to the Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar. Management uses the adjustment for hedged exposures for the Optical Communications, Glass Innovations and Automotive segments to reflect the impact of that program, as applicable to each segment. The most significant adjustment relates to Japanese yen exposure within the Glass Innovations segment, which primarily impacts net sales.
Current report
The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct non-GAAP adjustments determined using different methodologies. Under the prior methodology, management-determined rates were applied to all foreign currency exposures for which we were significantly hedged during the applicable period, even though we may have been less than 100% hedged. Under the current adjustment for hedged exposures, contractual hedge rates are applied only to the portion of exposure actually hedged during the applicable period, and the remaining unhedged exposure is reflected at the exchange rates included in the Company’s consolidated GAAP results. The prior-period amounts presented herein are the amounts as historically reported.
Current report
The table below presents the hedge rates used in calculating the adjustment for hedged exposures for the three months ended June 30, 2026 as well as the percentage of exposure hedged for the same period. Percentages are calculated relative to after-tax earnings exposure.
Current report
Constant-currency adjustment: Prior to April 1, 2026, the constant-currency rates used were as follows and were applied to all relevant foreign currency exposures during the three months ended March 31, 2026 and three and six months ended June 30, 2025:
Current report
(12)Equity in losses of affiliated companies: Amount reflects costs not related to continuing operations of affiliated companies, such as restructuring, impairment losses, inventory adjustments, and other charges and credits.
Current report
Net cash used in financing activities for the six months ended June 30, 2026 decreased by $124 million when compared to the same period last year, primarily driven by $500 million in proceeds from the issuance of a pre-funded warrant and a $164 million increase in proceeds from the issuance of debt and short-term borrowings, partially offset by incremental debt payments of $412 million and increased payments for employee withholding tax on stock awards of $209 million.
Removed paragraphs (23)
Previous report
•Overview
Previous report
OVERVIEW
Previous report
Overall, we believe we have established a firm foundation from which to launch future profitable growth. We see remarkable demand for our innovations and manufacturing capabilities, which we believe will lead to additional growth opportunities through 2026 and beyond. We therefore expect to increase both our capacity and technology capabilities as required to achieve our goals, while sharing risk appropriately to achieve the returns that underpin our Springboard plan.
Previous report
2026 Corporate Outlook
Previous report
We expect core net sales of approximately $4.6 billion for the second quarter of 2026.
Previous report
For the three months ended March 31, 2026, selling, general and administrative expenses increased $117 million when compared to the same period in 2025, primarily due to an increase in variable compensation.
Previous report
Translated earnings contract loss, net
Previous report
The comparative period segment information presented below has been recast for the changes in segment reporting as described above.
Previous report
Segment net sales remained consistent as increased premium content sales offset softness in the North America heavy-duty diesel market.
Previous report
Segment net sales remained consistent with the comparative periods.
Previous report
The increase in segment net income was primarily driven by improved performance within our automotive glass business, partially offset by decreased sales in our environmental technologies business, as outlined above.
Previous report
The decrease in segment net income was primarily driven by temporarily higher costs to ramp up capacity.
Previous report
Segment net income remained fairly consistent with the comparative period.
Previous report
In managing the Company and assessing our financial performance, we adjust certain measures included in our consolidated financial statements to exclude specific items to arrive at measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and exclude specific items that are non-recurring, related to foreign exchange volatility, or unrelated to continuing operations. These measures are our core performance measures.
Previous report
Management uses core performance measures, along with GAAP financial measures, to make financial and operational decisions and certain of these measures also form the basis of our compensation program metrics. Management believes that our core performance measures are indicative of our core operating performance and provide investors with greater visibility into how management evaluates our results and trends and makes business decisions. These measures are not, and should not be viewed as a substitute for, GAAP reporting measures.
Previous report
In addition, because a significant portion of our 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. Therefore, management utilizes constant-currency reporting for the Optical Communications, Glass Innovations and Automotive segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Glass Innovations segment. The constant-currency rates established for our core performance measures are long-term management-determined rates, which are closely aligned with our hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward, cross-currency swaps or option contracts and foreign-denominated debt. For details of the rates used, refer to the footnotes to the “Reconciliation of Non-GAAP Measures” section. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuations, analyze underlying trends in the businesses and establish operational goals and forecasts.
Previous report
(a)Based upon statutory tax rates in the specific jurisdiction for each event.
Previous report
(b)The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $37 million and $38 million, respectively.
Previous report
(a)Based upon statutory tax rates in the specific jurisdiction for each event.
Previous report
(b)The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $28 million and $29 million, respectively.
Previous report
The constant-currency rates established for our core performance measures are long-term management-determined rates, which are closely aligned with our hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts, cross-currency swaps and foreign-denominated debt.
Previous report
Constant-currency rates used are as follows and are applied to all periods presented and to all foreign exchange exposures during the period, even though we may be less than 100% hedged:
Previous report
Net cash provided by financing activities for the three months ended March 31, 2026 was $59 million compared to net cash used in financing activities of $403 million in the prior year. This activity is primarily driven by proceeds from the issuance of short-term borrowings during 2026 of $427 million.
Reworded paragraphs (45)
Previous wording
In the third quarter of 2023, we introduced our Springboard plan to grow sales and enhance our profitability base. We communicated a high-confidence plan to add $3 billion in incremental annualized core sales and set a core operating margin target of 20% by the end of 2026 (as compared to our Springboard starting point). As of the fourth quarter of 2025, we achieved both our growth and profitability targets a full year ahead of plan, and in January 2026, we upgraded this high-confidence plan to $5.75 billion. Since the launch of Springboard, we have significantly grown annualized sales and expanded our profitability. Our continued performance on our Springboard plan has transformed the financial profile of the Company and delivered durable growth across our businesses.
Current wording
In the third quarter of 2023, we introduced our Springboard plan to grow sales and enhance our profitability base and launched our plan with an annualized sales run rate of $13 billion. Over the past two and a half years, we have significantly grown annualized sales and expanded profitability. Our continued performance on our Springboard plan has transformed the financial profile of the Company and delivered durable growth across our businesses. We see remarkable demand for our innovations and manufacturing capabilities, which we believe will lead to additional growth opportunities through 2026 and beyond.
Previous wording
For the three months ended March 31, 2026, net sales increased $692 million, or 20%, when compared to the same period in 2025. This was primarily driven by an increase in sales for optical communication products of $491 million and an increase in sales for polycrystalline silicon and solar products of $164 million.
Current wording
For the three months ended June 30, 2026, net sales increased $643 million, or 17%, when compared to the same period in 2025. This was primarily driven by an increase in sales for optical communication products of $506 million and an increase in sales for polycrystalline silicon and solar products of $207 million.
Previous wording
For the three months ended March 31, 2026, cost of sales increased $378 million, or 17%, when compared to the same period in 2025, primarily driven by the increase in net sales as discussed above. Gross margin increased $314 million, or 26%, and increased as a percentage of sales by 2 percentage points when compared to the same period in 2025 as higher profit in Optical Communications was partially offset by temporarily higher costs to ramp up capacity to produce more in Solar.
Current wording
For the three months ended June 30, 2026, cost of sales increased $407 million, or 16%, when compared to the same period in 2025, primarily driven by the increase in net sales as discussed above. Gross margin increased $236 million, or 17% and remained consistent as a percentage of sales when compared to the same period in 2025 as higher profit in Optical Communications was partially offset by temporarily higher costs to ramp up capacity to produce more in Solar.
Previous wording
For the three months ended March 31, 2026, research, development and engineering expenses increased $8 million and remained consistent as a percentage of sales when compared to the same period in 2025.
Current wording
For the three and six months ended June 30, 2026, research, development and engineering expenses increased $23 million and $31 million, respectively, and remained consistent as a percentage of sales when compared to the same periods in 2025.
Previous wording
Included in translated earnings contract 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.
Current 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, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar and its impact on net income.
Previous wording
The following table provides detailed information on the impact of translated earnings contract loss, net (in millions):
Current wording
The following table provides detailed information on the impact of translated earnings contract gain, net (in millions):
Previous wording
(1)For the three months ended March 31, 2026, and 2025, amount includes non-cash pre-tax realized losses of $90 million and $40 million, respectively, related to the premiums of expired option contracts.
Current wording
(1)For the three and six months ended June 30, 2026, amount includes non-cash pre-tax realized losses of $75 million and $165 million, respectively, and 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, related to the premiums of expired option contracts.
Previous wording
(2)For the three months ended March 31, 2026, amount excludes $11 million gain related to forward contracts designated as net investment hedge, which was recorded in accumulated other comprehensive loss on the consolidated balance sheets and reflected within investing activities on the consolidated statements of cash flows.
Current wording
(2)For the three and six months ended June 30, 2026, amount excludes $4 million and $15 million gains, respectively, and for the three and six months ended June 30, 2025 amount excludes $8 million loss related to forward contracts designated as net investment hedge, which was recorded in accumulated other comprehensive loss on the consolidated balance sheets and reflected within investing activities on the consolidated statements of cash flows.
Previous wording
The impact to income from realized activity for the three months ended March 31, 2026 was primarily driven by realized gains from our Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won-denominated hedges. The impact to income from realized activity for the three months ended March 31, 2025 was primarily driven by realized gains from our Japanese-yen and Mexican peso 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 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.
Previous wording
The impact to income from unrealized activity for the three months ended March 31, 2026 was primarily driven by unrealized losses from our Japanese yen, new Taiwan dollar, South Korean won and Mexican peso-denominated hedges, partially offset by unrealized gains from our euro and Chinese yuan-denominated hedges. The impact to income from unrealized activity for the three months ended March 31, 2025 was primarily driven by unrealized losses from our Japanese-yen and euro denominated hedges, partially offset by unrealized gains from our South Korean won-denominated hedges.
Current wording
The impact to income from unrealized activity for the three months ended June 30, 2026 was primarily driven by unrealized gains from our Mexican peso and Chinese yuan-denominated hedges, partially offset by unrealized losses from our Japanese yen-denominated hedges. The impact to income from unrealized activity for the six months ended June 30, 2026 was primarily driven by unrealized losses from our Japanese yen, South Korean won and New Taiwan dollar-denominated hedges, partially offset by unrealized gains from our Chinese yuan, euro and Mexican peso-denominated hedges.
Previous wording
For the three months ended March 31, 2026, income before income taxes increased $289 million when compared to the same period in 2025, primarily driven by an increase in gross margin, as discussed above, partially offset by an increase in selling, general and administration expenses due to an increase in variable compensation.
Current wording
For the three and six months ended June 30, 2026, income before income taxes increased $65 million and $354 million, respectively, when compared to the same periods in 2025, primarily driven by an increase in gross margin, as discussed above, partially offset by an increase in selling, general and administration expenses due to higher share-based compensation expense, as the rise in the Company’s stock price increased the fair value of performance-based restricted stock units.
Previous wording
For the three months ended March 31, 2026, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to the impact of an unfavorable tax ruling in South Korea partially offset by changes in reserves, adjustments to share-based compensation, government incentives and foreign-derived deduction eligible income.
Current wording
For the three months ended June 30, 2026, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to adjustments to share-based compensation, government incentives and foreign derived deduction eligible income. For the six months ended June 30, 2026, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to adjustments to share-based compensation, government incentives, changes in reserves and foreign derived deduction eligible income partially offset by the impact of an unfavorable tax ruling in South Korea.
Previous wording
For the three months ended March 31, 2025, 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, partially offset by foreign-derived intangible income and non-taxable items.
Current wording
For the three and six months ended June 30, 2025, the effective tax rate differed from the 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 months ended March 31, 2026, the effective tax rate differed when compared to the same period in 2025 primarily due to changes in reserves, adjustments to share-based compensation, government incentives, and foreign-derived deduction eligible income (previously foreign-derived intangible income) partially offset by the impact of an unfavorable tax ruling in South Korea and pre-tax losses with no corresponding expected tax benefit.
Current wording
For the three months ended June 30, 2026, the effective tax rate differed when compared to the same period in 2025 primarily due to adjustments to share-based compensation, government incentives and foreign derived deduction eligible income. For the six months ended June 30, 2026, the effective tax rate differed when compared to the same period in 2025 primarily due to adjustments to share-based compensation, foreign derived deduction eligible income (previously foreign derived intangible income) and government incentives partially offset by the impact of an unfavorable tax ruling in South Korea.
Previous wording
The Internal Revenue Service (“IRS”) is currently conducting examinations of the Company’s U.S. federal income tax returns for the years 2015 through 2018 and 2019 through 2020, including issues related to the one-time transition tax enacted under the Tax Cuts and Jobs Act of 2017. If challenged, Corning believes that it is at least more likely than not to sustain its position relating to these matters. However, if the Company is ultimately unsuccessful in defending its position, the impact could be material to its consolidated financial statements.
Current wording
The Internal Revenue Service (“IRS”) is currently conducting examinations of the Company’s U.S. federal income tax returns for the years 2015 through 2018 and 2019 through 2020, including matters related to the one-time transition tax enacted under the Tax Cuts and Jobs Act of 2017. If challenged, Corning believes that it is at least more likely than not to sustain its position relating to these matters. However, if the Company is ultimately unsuccessful in defending its position, the impact could be material to its consolidated financial statements.
Previous wording
Financial results for the reportable segments and Life Sciences and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker in making internal operating decisions, which is more fully discussed within Note 14 (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 Life Sciences and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker in making internal operating decisions. In addition, effective April 1, 2026, we made changes to the manner in which we determine our segment results. Specifically, we prospectively replaced constant-currency reporting with a new adjustment to derive our segment results, which we refer to as our “adjustment for hedged exposures.” The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct adjustments determined using different methodologies. These changes are more fully discussed within Note 14 (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.
Previous wording
The following table presents segment net sales by reportable segment and Life Sciences and Emerging Growth Businesses (in millions):
Current wording
The following table presents segment net sales by reportable segment and Life Sciences and Emerging Growth Businesses (in millions)(1):
Previous wording
(1)Refer to Note 14 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net sales.
Current wording
(2)Refer to Note 14 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net sales.
Previous wording
The increase in segment net sales 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 six month periods was primarily due to continued growth in our Enterprise business driven by strong demand for our Generative AI products.
Previous wording
The increase in segment net sales was primarily due to continued strong demand for LCD glass and Gorilla glass.
Current wording
The increase in segment net sales for both the three and six month periods was primarily due to continued strong demand for LCD glass.
Previous wording
The increase in segment net sales was primarily driven by growth in polysilicon and solar wafers and module sales for the solar industry.
Current wording
The increase in segment net sales for both the three and six month periods was primarily driven by growth in polysilicon and solar wafers and module sales for the solar industry.
Previous wording
The following table presents segment net income by reportable segment and Life Sciences and Emerging Growth Businesses (in millions):
Current wording
The following table presents segment net income by reportable segment and Life Sciences and Emerging Growth Businesses (in millions)(1):
Previous wording
(1)Refer to Note 14 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net income.
Current wording
(2)Refer to Note 14 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net income.
Previous wording
The increase in segment net income was primarily driven by strong incremental profit on higher revenue, as outlined above.
Current wording
The increase in segment net income for both the three and six month periods was primarily driven by strong incremental profit on higher revenue, as outlined above.
Previous wording
The increase in segment net income 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 six month periods was primarily driven by increased sales, as outlined above, and profit on higher volumes.
Previous wording
Items that are excluded from certain core performance calculations include: the impact of translating foreign denominated debt, the impact of the translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments and other items which do not reflect the ongoing operating results of the Company.
Current wording
Items excluded from certain core performance measures include realized and unrealized gains and losses on our undesignated foreign exchange forward or option contracts and cross-currency swaps, which we refer to as our translated earnings contracts, and on the translation of our foreign-denominated debt. Other excluded items include acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments, and other items that do not reflect the ongoing operating results of the Company.
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, Glass Innovations and Automotive 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 months ended March 31, 2026 and 2025, 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
Because a significant portion of the Company’s revenues and expenses are denominated in currencies other than the U.S. dollar, the Company maintains a foreign currency risk management program whereby it hedges its foreign currency exposure to the Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar. Management utilizes the adjustment for hedged exposures for the Optical Communications, Glass Innovations and Automotive segments to reflect the Company’s foreign currency risk management program with respect to these currencies, as applicable to each segment. The most significant adjustment relates to the Japanese yen exposure within the Glass Innovations segment. Management believes that this adjustment for hedged exposures is useful for analyzing underlying business trends and establishing operational goals and forecasts by illustrating results aligned with the currency environment established by the Company’s foreign currency risk management program.
Previous wording
The following table presents selected highlights from our operations, excluding certain items (in millions, except per share amounts):
Current wording
The following table presents selected highlights from our operations, excluding certain items (in millions, except per share
Previous wording
For the three months ended March 31, 2026, we generated core net sales of $4.3 billion compared to $3.7 billion for the same period in 2025. The increase in core net sales of $666 million was primarily driven by increased segment sales of $491 million in Optical Communications and $164 million in Solar. Net sales of reportable segments and Life Sciences and Emerging Growth Businesses is discussed in detail in the “Segment Analysis” section of our MD&A.
Current wording
For the three months ended June 30, 2026, we generated core net sales of $4.7 billion compared to $4.0 billion for the same period in 2025. The increase in core net sales of $693 million was primarily driven by increased segment sales of $506 million in Optical Communications and $207 million in Solar. Net sales of reportable segments and Life Sciences and Emerging Growth Businesses are discussed in detail in the “Segment Analysis” section of our MD&A.
Previous wording
For the three months ended March 31, 2026, we generated core net income of $612 million compared to $467 million for the same period in 2025. The increase of $145 million was primarily due to higher segment net income of $186 million in Optical Communications, partially offset by decreased segment net income of $20 million in Solar. Net income of reportable segments and Life Sciences and Emerging Growth Businesses is discussed in detail in the “Segment Analysis” section of our MD&A.
Current wording
For the three months ended June 30, 2026, we generated core net income of $680 million compared to $523 million for the same period in 2025. The increase of $157 million was primarily due to higher segment net income of $191 million in Optical Communications, partially offset by increased variable compensation and higher costs to ramp up capacity in Solar. Net income of reportable segments and Life Sciences and Emerging Growth Businesses 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 March 31, 2026 to $0.70 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 June 30, 2026 to $0.78 per share, primarily as a result of the changes in core net income, outlined above.
Previous wording
(3)Translated earnings contract, net: Amount reflects the impact of the realized and unrealized gains and losses on our derivative instruments used to hedge Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro foreign currency exposure related to translated earnings.
Current wording
(3)Translated earnings contract, net: Amount reflects the impact of the realized and unrealized gains and losses on our derivative instruments used to hedge Japanese yen, Mexican peso, Chinese yuan, South Korean won, euro and New Taiwan dollar foreign currency exposure related to translated earnings.
Previous wording
(8)Loss on investments: Amount reflects the loss recognized on investments due to mark-to-market adjustments for the change in fair value or the disposition of an investment.
Current wording
(8)Gain or loss on investments: Amount reflects the gain or loss recognized on investments due to mark-to-market adjustments for the change in fair value or the disposition of an investment.
Previous wording
(10)Loss on sale of business: Amount reflects the loss recognized for the sale of a business, recorded in other expense, net, on the consolidated statements of income.
Current wording
(9)Gain or loss on sale of business: Amount reflects the gain or loss recognized for the sale of a business, recorded in other expense, net, on the consolidated statements of income.
Previous wording
(9)Gain or loss on sale of assets: Amount represents the gain or loss recognized for the sale of assets, recorded in cost of sales, on the consolidated statements of income.
Current wording
(10)Gain or loss on sale of assets: Amount represents the gain or loss recognized for the sale of assets, recorded in cost of sales, on the consolidated statements of income.
Previous wording
Our major sources of funding for 2026 and beyond will be our operating cash flow, our existing balances of cash and cash equivalents and proceeds from any issuances of debt. We believe we have sufficient liquidity to fund operations and meet our obligations for the foreseeable future. Such obligations may include requirements for acquisitions, capital expenditures, debt repayments, dividend payments and share repurchases. We will continue to generate cash from operations and maintain access to our revolving credit facility and commercial paper programs as discussed in more detail below.
Current wording
Our major sources of funding for 2026 and beyond will be our operating cash flow, our existing balances of cash and cash equivalents and proceeds from any issuances of securities. We believe we have sufficient liquidity to fund operations and meet our obligations for the foreseeable future. Such obligations may include requirements for acquisitions, capital expenditures, debt repayments, dividend payments and share repurchases. We will continue to generate cash from operations and maintain access to our revolving credit facility and commercial paper programs as discussed in more detail below.
Previous wording
We participate in accounts receivable management programs, including factoring arrangements to sell certain accounts receivable to third-party financial institutions or accelerate collections through our customer’s supply chain financing arrangements. Sales of accounts receivable are reflected as a reduction of accounts receivable on the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. During the months ended March 31, 2026 and 2025, we accelerated the collection of $288 million and $403 million, respectively, in accounts receivable. Related servicing fees for the period were not material.
Current wording
We participate in accounts receivable management programs, including factoring arrangements to sell certain accounts receivable to third-party financial institutions or accelerate collections through our customer’s supply chain financing arrangements. Sales of accounts receivable are reflected as a reduction of accounts receivable on the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. During the six months ended June 30, 2026 and 2025, we accelerated the collection of $611 million and $802 million, respectively, in accounts receivable. Related servicing fees for the period were not material.
Previous wording
Net cash provided by operating activities for the three months ended March 31, 2026 improved when compared to the same period in the prior year, primarily driven by higher net income.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2026 improved when compared to the same period in the prior year, primarily driven by higher net income and the receipt of an upfront customer deposit of $1.0 billion, related to a long-term supply agreement.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2026 increased by $38 million when compared to the same period last year, primarily driven by higher capital expenditures of $124 million, partially offset by higher realized gains on our translated earnings contracts of $94 million.
Current wording
Net cash used in investing activities for the six months ended June 30, 2026 increased by $96 million when compared to the same period last year, primarily driven by increased capital expenditures of $238 million, partially offset by higher realized gains on our translated earnings contracts of $171 million.
Previous wording
As of March 31, 2026, we had $1.8 billion of cash and cash equivalents. Our cash and cash equivalents are held in various locations throughout the world and are generally unrestricted. We utilize a variety of strategies to ensure that our worldwide cash is available in the locations in which it is needed. As of March 31, 2026, approximately 67% of the consolidated cash and cash equivalents were held outside the U.S.
Current wording
As of June 30, 2026, we had $2.5 billion of cash and cash equivalents. Our cash and cash equivalents are held in various locations throughout the world and are generally unrestricted. We utilize a variety of strategies to ensure that our worldwide cash is available in the locations in which it is needed. As of June 30, 2026, approximately 49% of the consolidated cash and cash equivalents were held outside the U.S.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, net sales increased $1.3 billion, or 18% when compared to the same period in 2025. This was primarily driven by an increase in sales for optical communication products of $997 million and polycrystalline silicon and solar products of $371 million.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, cost of sales increased $785 million, or 17%, when compared to the same period in 2025, primarily driven by the increase in net sales as discussed above. Gross margin increased $550 million, or 21%, and remained consistent as a percentage of sales when compared to the same period in 2025 as higher profit in Optical Communications was partially offset by temporarily higher costs to ramp up capacity to produce more in Solar.
Current report — wording carried from elsewhere
The impact to income from realized activity for the three and six months ended June 30, 2026 was primarily driven by realized gains from our Japanese yen and Mexican peso-denominated hedges, partially offset by realized losses from our South Korean won-denominated hedges.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
Core earnings per share increased for the six months ended June 30, 2026 to $1.47 per share, primarily as a result of the changes in core net income, outlined above.
Current report — wording carried from elsewhere
Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items.