Corning’s GLW Stock Surges on Multi-Billion Dollar AT&T Deal: Fiber Network Expansion Fuels Growth
Corning Incorporated (GLW) is starting the week strong, with its shares trading significantly higher in the premarket. The catalyst? A multi-year agreement with telecommunications giant AT&T (T) valued at over $1 billion. This deal signifies a significant expansion of their decades-long partnership and positions Corning as a key player in AT&T’s ambitious fiber network expansion plans.
The agreement centers around Corning supplying AT&T with advanced fiber, cable, and connectivity solutions. These solutions will be critical in supporting AT&T’s efforts to bring high-speed internet access to more Americans. The deal specifically highlights the integration of Corning’s cutting-edge Evolv connectivity solutions, including the Evolv FlexNAP with Multifiber Pushlok Technology. This technology is designed to meet the stringent requirements of the Build America, Buy America provisions within the Broadband Equity, Access, and Deployment (BEAD) program.
John Stankey, CEO of AT&T, expressed enthusiasm about the partnership, stating, “This new multi-year agreement with Corning helps us to connect more households, communities, and businesses with the high-speed, reliable internet they need to thrive in a digital world.” Wendell P. Weeks, chairman and CEO of Corning Incorporated, echoed this sentiment, highlighting the shared vision for expanding fiber access: “By extending our longtime relationship with AT&T, we’re helping bring the transformational benefits of fiber to more people and communities. We share a fundamental belief that the more people you connect, the more value you create. And optical fiber is bringing people together at an unprecedented scale.”
This deal further solidifies Corning’s position as a leader in the fiber optic industry. The company is actively pursuing its “Springboard” plan, aiming to add over $3 billion in annualized sales and achieve a 20% operating margin by 2026. This agreement with AT&T is expected to contribute significantly to these ambitious goals.
For investors interested in gaining exposure to Corning, the ProShares Smart Materials ETF (TINT) and Professionally Managed Portfolios Otter Creek Focus Strategy ETF (OCFS) offer potential avenues.
Market Reaction:
GLW shares were up 2.25% at $47.29 premarket at the time of writing. The market’s positive response indicates investor confidence in Corning’s ability to capitalize on the growing demand for fiber optic solutions and the potential of the partnership with AT&T to drive significant growth.
