v3.26.1
Reportable Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Reportable Segments Reportable Segments
Effective in the first quarter of fiscal 2026, the Company revised its segment structure. This revision corresponds with changes in how our businesses are managed, which align with how our chief operating decision maker (“CODM”) reviews performance and allocates resources. As a result, the Company began managing its Display and Specialty Materials businesses as a single operating segment, referred to as Glass Innovations, and its Hemlock Semiconductor Group, solar wafer, and solar module businesses as a single operating segment, referred to as Solar. In addition, the Company’s Life Sciences business does not meet the quantitative threshold for separate reporting and therefore is no longer reported as a reportable segment and is included together with all other businesses that do not meet the quantitative threshold for separate reporting within Life Sciences and Emerging Growth Businesses. Optical Communications and Automotive remain unchanged and continue to be reported as separate reportable segments.

As a result of the above changes, the Company has determined it has four reportable segments for financial reporting purposes, organized primarily based on product offerings, as follows:
•Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry; the carrier network group consists primarily of products and solutions for optical-based communications infrastructure for services such as video, data and voice communications; the enterprise network group consists primarily of optical-based communication networks, including hyperscale data centers, sold to businesses, governments and individuals for their own use.
•Glass Innovations – utilizes proprietary melting, precision forming, strengthening, and finishing processes to create advanced flat glass substrates for LCD and OLED displays and cover materials for mobile consumer electronics; and provides material formulations and optical fabrication for specialty glass, glass ceramic, fluoride crystal, and other precision materials and components for semiconductor, aerospace and defense, telecommunications, commercial, and industrial applications.
•Automotive – manufactures ceramic substrates and filter products for emissions control systems in mobile applications; as well as technical glass and optic products and solutions for the interior and exterior of vehicles.
•Solar – manufactures silicon materials and products for semiconductor and solar applications, including hyper-pure polysilicon produced by Hemlock Semiconductor Group, solar wafers, and solar modules. The segment’s products serve customers across the semiconductor and solar markets globally from a manufacturing footprint in the United States.

All other businesses that do not meet the quantitative threshold for separate reporting have been grouped as Life Sciences and Emerging Growth Businesses.

These changes reflect the Company’s internal management structure and align with the information regularly reviewed by the CODM.

The CODM of the Company is the Company’s chief executive officer. The CODM assesses performance and decides how to allocate resources, including employees, financial or capital resources, based on segment net income, which includes certain corporate overhead allocations directly attributable to each of the segments. The CODM considers actual-to-actual variances on a quarterly basis when making decisions about allocating capital and other resources to the segments and to assess the performance for each segment.
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 CODM in making internal operating decisions.
As a significant portion of segment revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on segment net sales and segment net income of translating these currencies into U.S. dollars. Therefore, segment results provided to the CODM include an adjustment for hedged exposures, as defined in more detail below, to adjust for the impact of the Company’s foreign currency risk management program with respect to certain foreign currency exchange rate movements. Segment results also exclude specific items, detailed below, that are non-recurring or otherwise unrelated to the Company’s ongoing operations.
Items excluded from segment results 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. These items are included in the unallocated amounts in the reconciliation of reportable segment net income to consolidated net income and are not used by the CODM in allocating resources or evaluating the results of the segments. Although these amounts are excluded from segment results, they are included in reported consolidated results.
Corning’s administrative and staff functions are performed on a centralized basis and certain of such costs and expenses are allocated among the segments differently than they would be for stand-alone financial reporting purposes. These include certain costs and
expenses of shared services, such as information technology, human resources, legal, finance and supply chain management. Expenses that are not allocated to the segments are included in the reconciliation of reportable segment net income to consolidated net income.
Segment net income may not be consistent with measures used by other companies.
Prior to April 1, 2026, segment results included an adjustment 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.
Effective April 1, 2026, 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” as discussed in more detail below. The prior constant-currency adjustment and the current adjustment for hedged exposures are distinct adjustments determined using different methodologies.
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.
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 segment results 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.
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.
CurrencyJapanese yenMexican pesoChinese yuanSouth Korean wonEuroNew Taiwan dollar
Hedge Rate
¥120MX$20¥6.8₩1,269€0.88NT$31
% of Exposure Hedged98%94%93%100%89%95%
The table below presents the rates that were used in calculating the constant-currency adjustment and were applied to all foreign exchange exposures during the three months ended March 31, 2026 and the three and six months ended June 30, 2025, even though we may have been less than 100% hedged:
CurrencyJapanese yenMexican pesoChinese yuanSouth Korean wonEuroNew Taiwan dollar
Core Rate¥120MX$21¥6.9₩1,250€0.88NT$31
Segment results for the comparative prior period as presented herein 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 and segment net income for our Glass Innovations segment for the three and six months ended June 30, 2026. The impact to segment net sales and segment net income for all other segments would have been immaterial.
The following provides selected segment information. The comparative periods have been recast for the changes in the reportable segment structure, as described above. However, periods prior to April 1, 2026 have not been recast for the changes in the segment measures, as described above.

Segment information (in millions):
Optical CommunicationsGlass InnovationsAutomotiveSolarTotal Reportable SegmentsLife Sciences and Emerging Growth BusinessesTotal
Three months ended June 30, 2026
Segment net sales$2,072 $1,463 $471 $438 $4,444 $294 $4,738 
Less:
Research, development and
   engineering expenses (1)
92 92 36 3 223 27 250 
Depreciation (2)
77 150 39 77 343 23 366 
Other segment items (3)
1,338 774 292 363 2,767 271 3,038 
Income tax provision (benefit) (4)
127 93 22 2 244 (6)238 
Segment net income (loss)$438 $354 $82 $(7)$867 $(21)$846 
Capital expenditures$180 $123 $16 $92 $411 $9 $420 
Three months ended June 30, 2025
Segment net sales$1,566 $1,443 $460 $231 $3,700 $345 $4,045 
Less:
Research, development and
   engineering expenses (1)
76 92 35 4 207 26 233 
Depreciation (2)
69 147 41 26 283 27 310 
Other segment items (3)
1,102 795 284 196 2,377 285 2,662 
Income tax provision (4)
72 85 21 3 181 1 182 
Segment net income $247 $324 $79 $2 $652 $6 $658 
Capital expenditures$87 $110 $30 $84 $311 $12 $323 
Six months ended June 30, 2026
Segment net sales$3,918 $2,883 $908 $808 $8,517 $566 $9,083 
Less:
Research, development and
   engineering expenses (1)
177 176 72 5 430 55 485 
Depreciation (2)
149 300 79 121 649 49 698 
Other segment items (3)
2,530 1,551 565 674 5,320 520 5,840 
Income tax provision (benefit) (4)
237 178 40 8 463 (13)450 
Segment net income (loss)$825 $678 $152 $— $1,655 $(45)$1,610 
Capital expenditures$328 $273 $31 $118 $750 $14 $764 
Six months ended June 30, 2025
Segment net sales$2,921 $2,849 $900 $437 $7,107 $617 $7,724 
Less:
Research, development and
   engineering expenses (1)
153 184 70 6 413 56 469 
Depreciation (2)
134 284 82 43 543 56 599 
Other segment items (3)
2,056 1,571 562 345 4,534 537 5,071 
Income tax provision (benefit) (4)
130 169 39 14 352 (8)344 
Segment net income (loss)$448 $641 $147 $29 $1,265 $(24)$1,241 
Capital expenditures$184 $187 $42 $129 $542 $— $20 $562 
(1)Research, development and engineering expenses include direct project spending that is identifiable to a segment.
(2)Depreciation expense includes an allocation of depreciation of corporate property not specifically identifiable to a segment.
(3)Other segment items primarily include the cost of materials, salaries, wages and benefits, including variable compensation, and selling, general and administrative expenses.
(4)Income tax provision (benefit) reflects a tax rate of 21%.
Segment information, continued (in millions):
Optical CommunicationsGlass InnovationsAutomotiveSolarTotal Reportable SegmentsLife Sciences and Emerging Growth BusinessesTotal
June 30, 2026
Investment in affiliated companies$5 $112 $— $— $117 $156 $273 
Segment assets (1)
$4,737 $9,240 $2,335 $3,029 $19,341 $1,424 $20,765 
December 31, 2025
Investment in affiliated companies$5 $114 $— $— $119 $183 $302 
Segment assets (1)
$4,029 $9,236 $2,395 $2,734 $18,394 $1,470 $19,864 
(1)Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation and associated equity companies.

The following table presents a reconciliation of net sales of reportable segments to consolidated net sales (in millions):
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Net sales of reportable segments$4,444 $3,700 $8,517 $7,107 
Net sales of Life Sciences and Emerging Growth Businesses294 345 566 617 
Adjustment for hedged exposures (1)
(233) (233) 
Impact of constant-currency reporting (2)
(183)(201)(410)
Consolidated net sales$4,505 $3,862 $8,649 $7,314 
(1)Effective April 1, 2026, adjustment was calculated by applying our hedge rates to the portion of foreign currency exposures that is hedged by the Company’s hedging instruments during the period, as described above. Amount primarily relates to the Japanese yen exposure within the Glass Innovations segment.
(2)Adjustment for periods prior to April 1, 2026 was calculated using long-term management-determined core rates and applied to all foreign currency exposures for which we were significantly hedged, as described above. Amount primarily relates to the Japanese yen exposure within the Glass Innovations segment.
The following table presents a reconciliation of net income of reportable segments to consolidated net income (in millions):
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Net income of reportable segments$867 $652 $1,655 $1,265 
Net (loss) income of Life Sciences and Emerging Growth
   Businesses		(21)6 (45)(24)
Unallocated amounts:  
Adjustment for hedged exposures (1)
(208) (208) 
Impact of constant-currency reporting (2)
(159)(180)(339)
Translated earnings contract gain, net90 131 74 30 
Translation (loss) gain on foreign denominated debt, net(1)(27)5 (70)
Research, development, and engineering expense(49)(43)(92)(77)
Amortization of intangibles(23)(28)(46)(56)
Interest expense, net(62)(72)(123)(135)
Income tax benefit198 98 289 205 
Restructuring, impairment and other charges and credits (71)(1)(115)6 
Other corporate items(111)(57)(197)(120)
Consolidated net income$609 $500 $1,017 $685 
(1)Effective April 1, 2026, adjustment was calculated by applying our hedge rates to the portion of foreign currency exposures that is hedged by the Company’s hedging instruments during the period, as described above. Amount primarily relates to the Japanese yen exposure within the Glass Innovations segment.
(2)Adjustment for periods prior to April 1, 2026 was calculated using long-term management-determined core rates and applied to all foreign currency exposures for which we were significantly hedged, as described above. Amount primarily relates to the Japanese yen exposure within the Glass Innovations segment.