Corning locks in multibillion-dollar fiber deal with Verizon
The agreement for over 80 million miles of optical fiber through 2032 cements Corning’s position in the AI infrastructure buildout, following similar contracts with Amazon and Nvidia.
Corning has signed a multibillion-dollar supply agreement with Verizon for more than 80 million miles of high-density optical fiber and connectivity solutions. The contract, which extends through 2032, supports Verizon’s broadband initiatives and the construction of long-haul, low-latency networks required to link artificial intelligence data centres.
The deal distinguishes itself from single data-center orders by covering both broadband and long-haul AI corridors. This positions Corning as a key supplier in the wider network buildout for the AI era, adding to its existing multibillion-dollar contract with Amazon and a partnership with Nvidia. The Nvidia initiative aims to expand U.S. optical connectivity manufacturing capacity by 10 times and fiber production capacity by more than 50%.
Financial results from the second quarter reflect this growing momentum. Corning reported core sales of $4.74 billion, up 17 per cent year-over-year, and core earnings per share of $0.78, a 30 per cent increase. Optical Communications sales, a critical segment for the AI thesis, grew 32 per cent to $2.07 billion, with Enterprise Networks revenue rising by 65 per cent.
Management has updated its Springboard Plan, targeting a sales run rate of $20 billion by the end of 2026, $30 billion by the end of 2028, and $40 billion by 2030. The Verizon agreement provides further credence to these ambitious targets. For the third quarter, Corning expects core sales between $4.9 billion and $5 billion, representing a 16 per cent year-over-year increase.
Corning’s market capitalisation stands at approximately $124 billion, with shares trading near $148. The stock has appreciated about 70 per cent year-to-date, outperforming the S&P 500 Index, which has gained roughly 11 per cent over the same period. Despite trading about 45 per cent below its 52-week high of $271.78, the shares have almost doubled from their 52-week low of $77.05.
The company currently trades at about 43.7 times forward earnings and 7.9 times sales. Wall Street maintains a consensus "Moderate Buy" rating, with a mean price target of $188.20, implying potential upside of about 27 per cent from current levels. Corning pays a quarterly dividend of $0.28 per share, providing a yield of roughly 0.8 per cent.
