Oppenheimer increased its price target for Corning Inc. (NYSE:GLW) to $120.00 from $100.00 on Thursday and reiterated an Outperform rating on the shares. The new target implies additional upside to the stock, which currently carries a market capitalization of $84.26 billion and trades at a price-to-earnings ratio of nearly 60.
The analyst action followed Corning's fourth-quarter 2025 financial results. For the quarter, the company reported core sales of $4.41 billion and earnings per share of $0.72, both slightly above FactSet consensus estimates of $4.36 billion and $0.71, respectively. On an annual basis, Corning posted revenue of $15.63 billion, representing year-over-year growth of 19.14%.
For the first quarter, Corning provided guidance calling for revenue of $4.25 billion and earnings per share of $0.68. Management said those figures represent year-over-year growth of 16% in revenue and 26% in earnings per share.
Earlier this year, Corning updated its Springboard plan in the wake of a $6 billion agreement with Meta announced on January 27. The company now projects a double-digit compound annual growth rate in revenue through 2028 under the revised plan.
Oppenheimer described Corning's updated projections as conservative because they do not incorporate revenue from scale-up optical opportunities. The firm also highlighted expectations for an improvement in net margins within Corning's Optical segment in the coming years.
Market analytics referenced in the update indicate that the stock is trading above its Fair Value, and a relative strength index reading places the shares in what is typically considered overbought territory. Corning has paid dividends for 19 consecutive years and is identified as a significant company within the Electronic Equipment industry.
Corning's fourth-quarter results were reiterated elsewhere in company reporting, which showed an EPS of $0.72 that topped a cited forecast of $0.70, alongside revenue of $4.41 billion that exceeded a $4.36 billion projection. Despite these positive beats, the company's shares declined following the report, a movement attributed to mixed investor sentiment in response to the results.
These developments - the analyst upgrade, the updated multi-year plan tied to the Meta agreement, and the market's reaction to quarterly beats - together frame current investor and analyst focus on the company as stakeholders assess near-term guidance, margin trajectories in Optical, and valuation metrics.
Summary
Oppenheimer raised its price target on Corning to $120 from $100 and kept an Outperform rating after the company posted slightly better-than-expected fourth-quarter results and provided first-quarter guidance showing robust year-over-year growth. Corning updated its Springboard plan after a $6 billion deal with Meta and expects double-digit revenue CAGR through 2028. Analysts view management's outlook as cautious because it excludes potential scale-up optical revenue, and market indicators suggest the stock may be trading at a premium.
Key points
- Oppenheimer increased the price target to $120 and maintained an Outperform stance; market cap is $84.26 billion with a P/E near 60 - impacting equity investors and valuation-focused analysts.
- Fourth-quarter core sales were $4.41 billion and EPS was $0.72, both marginally above FactSet consensus; full-year revenue was $15.63 billion, up 19.14% year-over-year - relevant to corporate performance and earnings-driven market reactions.
- Corning's guidance for Q1 calls for $4.25 billion in revenue and $0.68 EPS, reflecting 16% and 26% year-over-year growth respectively; the updated Springboard plan following a $6 billion Meta deal targets double-digit revenue CAGR through 2028, primarily affecting the Optical and Electronic Equipment sectors.
Risks and uncertainties
- Management's published projections exclude revenue from scale-up optical opportunities, creating uncertainty about upside that could affect Optical segment forecasts and related capital markets expectations.
- Valuation indicators show the stock trading above Fair Value with an RSI in overbought territory, posing a risk that market sentiment may adjust if growth or margin improvement disappoints; this primarily concerns equity investors and technical traders.
- Despite quarterly beats, the share price declined on mixed investor sentiment, highlighting the risk that positive operational results may not translate into immediate share-price gains - an uncertainty for market participants gauging earnings reactions.