Corning (GLW) Stock Rises on Solar Tariff News and Strong Q2 Earnings

TLDR

• GLW stock has gained 81% year-to-date and opened at $157.45 on Friday
• The U.S. government is considering tariffs on polysilicon imports, boosting Corning’s Hemlock Semiconductor joint venture
• Q2 revenue rose 17% year-over-year to $4.74 billion, beating estimates
• EPS came in at $0.78, beating the $0.76 consensus for the eighth consecutive quarter
• Analysts hold a “Moderate Buy” consensus with a mean price target of $185.14

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Corning (GLW) got a double dose of good news this week. The stock rallied after Reuters reported the U.S. government is considering tariffs on polysilicon and related products used in solar panels and chips. GLW opened at $157.45 on Friday.

Corning Inc, GLW

The tariff talk matters for Corning because of Hemlock Semiconductor (HSC), a joint venture Corning controls with an approximately 80% stake. The remaining stake belongs to Japan’s Shin-Etsu Handotai.

HSC operates a polysilicon factory in Michigan and is one of a small number of producers capable of hitting the purity levels needed for leading-edge semiconductors. In 2024, the U.S. Department of Commerce announced plans to award up to $325 million under the CHIPS Act to expand HSC’s output.

$FSLR $ENPH $TE

U.S. WEIGHS POLYSILICON PRICE FLOOR AND TARIFFS TO COUNTER CHINA – Reuters

The Trump administration is preparing a minimum import price and tariffs on polysilicon and related products, with a decision expected later this month.

Polysilicon is a critical input… pic.twitter.com/fZRU6lYR6L

— Wall St Engine (@wallstengine) August 4, 2026

Corning recently completed a $375 million next-generation finishing facility in Michigan to modernize semiconductor-grade polysilicon production and improve purity levels.

Why the Tariff News Matters

China controls more than 80% of global solar manufacturing capacity. For wafers and ingots, that figure climbs closer to 95%. Solar costs in China run roughly 20% below U.S. levels, making domestic production tough to compete on price alone.

A price floor or tariff on polysilicon imports would change that equation, and HSC sits in a strong position to benefit. Shin-Etsu Handotai controls around 27% of the global silicon wafer market, making it the largest supplier worldwide.

Strong Q2 Adds to the Story

Beyond the tariff news, Corning’s Q2 results gave investors plenty to work with. Revenue hit $4.74 billion, up 17% year-over-year and above the $4.63 billion consensus estimate.

The Optical Communications segment, which includes AI-related sales, grew 32% year-over-year to $2.07 billion. Corning signed deals with Amazon and Nvidia during the quarter, both focused on optical connectivity.

EPS came in at $0.78, beating the $0.76 estimate. That marked the eighth straight quarter of an earnings beat.

Net cash flow from operating activities more than doubled to $1.72 billion from $708 million in the same period a year ago. Corning ended Q2 with a $2.5 billion cash balance, well above its $668 million in short-term debt.

For Q3, Corning guided for revenue of $4.9 billion to $5 billion and EPS of $0.85 to $0.89. Analyst estimates sit at $4.99 billion in revenue and $0.88 EPS.

Gross margins came in at around 36%, with operating margins near 15%.

Valuation is one area where some analysts pump the brakes. The forward P/E sits at 48.9x, the P/S multiple is 8.8x, and the P/CF ratio is 38.6x, all above sector medians.

On the analyst front, JPMorgan cut its price target from $200 to $170 with a neutral rating. Bank of America raised its target from $223 to $243 with a buy. Citigroup lowered its target from $240 to $220 but kept a buy. UBS held its buy rating with a $196 target.

The stock has a 52-week range of $63.37 to $271.78. The current consensus mean target stands at $185.14, implying around 18% upside from current levels.