GLW

Ciena Corporation CIEN reported third-quarter fiscal 2026 adjusted earnings of $2.11 per share, which soared 215% year over year and beat the Zacks Consensus Estimate of $1.74. Quarterly revenues rose 37% to $1.67 billion and topped the $1.65 billion consensus mark. AI-driven networking demand remained the key growth engine. Cloud provider revenues accounted for 53% of total sales and jumped 82% year over year, underscoring the scale of hyperscaler spending behind Ciena’s record quarter. Product demand remained strong across Ciena’s optical portfolio. Revenues from RLS and Waveserver each increased more than 55% year over year, while pluggables revenues more than doubled as WaveLogic 6 Nano ramped. WaveLogic 6 Nano 800ZR pluggable shipments also more than doubled sequentially. Ciena received a significant direct performance optics module order and secured a second multi-rail win, extending its participation in hyperscaler infrastructure. The company also posted record shipments of WL5e, WL6e and WL6n products. Management said a growing backlog and customer commitments are providing multi-year visibility, and the company has entered long-term supplier agreements to support elevated demand. APAC revenues climbed 58% year over year, with strength across the region. Customer concentration was notable, with two customers each representing more than 10% of revenues and together accounting for 41.7% of the quarter’s top line. Networking Platforms revenues increased 44% year over year to $1.36 billion and represented 81.1% of total sales. Optical Networking revenues rose 46.1% to $1.19 billion, while Routing and Switching revenues advanced 30.6% to $164.4 million. Platform Software and Services revenues grew 9.6% to $98.6 million. Global Services revenues increased 20.8% to $193.6 million, supported by higher maintenance, implementation and advisory revenues. Blue Planet Automation Software and Services revenues fell 16.5% to $23.2 million. Ciena Corporation price-consensus-eps-surprise-chart | Ciena Corporation Quote Geographically, the Americas generated 79% of fiscal third-quarter revenues, while Europe, the Middle East and Africa contributed 11% and Asia-Pacific accounted for 10%. That mix kept the Americas as Ciena’s dominant revenue region even as APAC expanded sharply. Adjusted gross margin expanded 450 basis points (bps) year over year to 46.4%. Adjusted operating expenses rose 5.2% to $400 million, well below revenue growth, supporting stronger profitability. That operating leverage lifted adjusted operating margin to 22.5% from 10.7% a year earlier, an improvement of 1,180 bps. Adjusted EBITDA increased 160.2% year over year to $411.1 million. Cash provided by operations rose 13% year over year to $196 million. Free cash flow declined 14% to $116 million, even as the company continued to generate positive cash from operations. Cash and investments doubled year over year to $2.8 billion. DSO improved to 76 days from 88, and inventory turns increased to 3.5 from 2.7. Net debt rose to $431 million from $204 million. Ciena repurchased about 0.4 million shares for $171.7 million during the quarter, bringing capital returned under its $1 billion repurchase program to roughly $665 million. The company also completed a $2.9 billion, 0% coupon convertible debt offering, which management said lowered overall interest expense and enhanced financial flexibility. For fourth-quarter fiscal 2026, Ciena expects revenue of $1.75 billion (+/- $50 million). Adjusted gross margin is projected at 45% (+/- 50 bps), and adjusted operating expenses are expected to be $415 million (+/- $10 million). Adjusted operating margin is forecast at 20% (+/- 50 bps). Ciena raised fiscal 2026 revenue guidance to $6.42 billion (+/- $50 million), implying 35% year-over-year growth at the midpoint. For fiscal 2027, management’s early view indicates at least 30% revenue growth, an adjusted gross margin of 45-46%, and an adjusted operating margin of 25-27%. The outlook assumes that cloud providers continue AI infrastructure spending at levels consistent with recent public commitments, that optical component and substrate supply remains broadly stable, and that there are no material changes in tariff, trade, or foreign-exchange conditions. Ciena currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. NETGEAR, Inc. NTGR reported second-quarter 2026 non-GAAP earnings per share (EPS) of 16 cents compared with the Zacks Consensus Estimate of 2 cents. The company’s bottom line improved 167% year over year. Quarterly net revenues of $168.6 million declined 1.2% year over year but topped the consensus estimate of $157.9 million by 6.8%. Revenues exceeded management guidance of $150 million and $165 million. Corning Incorporated GLW reported second-quarter 2026 results with non-GAAP earnings of 78 cents per share, up 30% year over year and 2.6% above the Zacks Consensus Estimate. Core revenues of $4.74 billion surged 17%, surpassing the consensus by 2.9%. Corning’s revenue growth was driven by Optical Communications and Solar segments. Enterprise Networks sales jumped 65%, supported by accelerating demand for generative artificial intelligence infrastructure. Viavi Solutions Inc. VIAV reported better-than-expected fourth-quarter fiscal 2026 results. Non-GAAP earnings of 34 cents per share beat the consensus estimate by 13.33%, while revenues of $443.1 million increased 52.5% year over year. Viavi Solutions’ robust performance was driven by sustained demand from the data center ecosystem and aerospace and defense markets, along with contributions from acquired Spirent product lines. The Network and Service Enablement segment remained the primary growth engine, delivering nearly 70% year-over-year revenue growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ciena Corporation (CIEN) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Viavi Solutions Inc. (VIAV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings estimates for Corning Incorporated GLW for fiscal 2026 and fiscal 2027 have moved up 2.51% to $3.27 and 1.66% to $4.28, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiment about the stock’s growth potential. Image Source: Zacks Investment Research Optical Communications has emerged as Corning’s major growth engine. In the second quarter, the segment’s sales increased 32% year over year to $2.07 billion, while segment net income jumped 77% to $438 million. The uptick is backed by rapid AI infrastructure buildout.Corning is expanding collaboration with some of the world’s largest tech companies. It has inked a multiyear, multibillion-dollar agreement with Amazon. Per the deal, Corning will provide optical fiber, cable and connectivity products for Amazon’s expanding U.S. data-center infrastructure. The company also announced a long-term partnership with NVIDIA to expand U.S.-based optical connectivity manufacturing capacity by 10 times and increase domestic fiber production capacity by more than 50%.Corning’s Glass Innovations business is benefiting from its premium positioning and product innovation. The company expects Gorilla Glass sales to outperform the broader handheld market despite pressure from higher memory prices. TV manufacturers and panel makers are increasingly shifting towards larger and higher-priced televisions. This is likely to create a favorable opportunity for Corning’s Display Business.Corning continues to enhance its financial profile under the Springboard initiative. The company has raised the ambition of its Springboard strategy, targeting an annualized sales run rate of $20 billion by the end of 2026, $30 billion by the end of 2028 and $40 billion by the end of 2030. Management expects sales to witness a 19% CAGR from the fourth quarter of 2026 through the fourth quarter of 2030, with earnings growing faster than sales. Demand softness in the handheld device market remains one of the key near-term challenges for the company. Management expects higher memory prices to push smartphone industry unit volumes down by a mid-teens percentage in 2026. Despite the company’s expectation of outperforming the market, demand for Gorilla Glass will likely be impacted by lower handset volume.Corning maintains a sizeable presence in China, which exposes the company to geopolitical tensions and tariff- related uncertainty. The Display and consumer electronics businesses remain dependent on Chinese panel makers and manufacturing ecosystems. Escalating trade restrictions, tariff increases or supply-chain disruptions between the United States and China could adversely affect operating margins, production efficiency and customer demand. Stiff competition can limit growth potential. Competition from companies such as Amphenol APH and Ciena Corporation CIEN may increase pressure on pricing.Corning's growing AI infrastructure exposure enhances growth but increases reliance on a small number of large customers. In second-quarter 2026, contract liabilities totaled $2.7B and included a $1B customer deposit tied to a long-term AI infrastructure supply agreement, highlighting concentration risk even as it supports near-term visibility. Corning shares have gained 104% in the past year compared with the communications components industry’s growth of 157.1%. The stock has outperformed the S&P 500 indexduring this period. Image Source: Zacks Investment Research It has underperformed its competitor, Ciena, but outperformed Amphenol. Ciena has gained 179.1%, while Amphenol has declined 28.4%. From a valuation standpoint, GLW is currently trading at a premium compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 36.51 forward 12-month earnings, higher than 35.16 for the industry. Image Source: Zacks Investment Research Growing exposure to AI infrastructure and expanding optical content per AI system are major growth drivers for Corning. Focus on product diversification and exposure to various markets such as solar, automotive and display boost resiliency in the business model. Strong demand for Gorilla Glass is a positive. However, weakness in the smartphone market, high customer concentration risks and growing geopolitical volatility remain major concerns. With a Zacks Rank #3 (Hold), Corning seems to offer a balanced investment outlook, suggesting that investors may want to exercise caution when considering the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Corning Incorporated (GLW) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Artisan Partners, an investment management company, released its second-quarter 2026 investor commentary for the "Artisan Global Opportunities Strategy". The letter can be downloaded here. Global equities rebounded sharply during the quarter, with the MSCI ACWI Index returning 15.3% as resilient economic growth, strong corporate earnings, and continued enthusiasm around artificial intelligence supported markets despite persistent inflation, higher bond yields, and geopolitical uncertainty. The portfolio reported strong absolute returns of 12.65% (net) but underperformed the benchmark, mainly because of its underweight exposure to information technology and overweight position in health care. Strong stock selection in technology and energy partially offset these headwinds. The fund continues to see attractive long-term opportunities across AI infrastructure, health care and consumer internet, while remaining disciplined on valuation as several AI-related stocks have appreciated sharply. Management remains focused on durable franchises with identifiable profit cycles and attractive long-term earnings potential. Also, check the Strategy’s top five holdings to see its best picks in 2026. In its second-quarter 2026 investor letter, Artisan Global Opportunities Strategy highlighted Corning Incorporated (NYSE:GLW) as a new position. Corning Incorporated (NYSE:GLW) is a technology company that operates through optical communication, display technologies, environmental technologies, specialty materials, and life sciences business segments. On September 01, 2026, Corning Incorporated (NYSE:GLW) closed at $145.56 per share. Corning Incorporated (NYSE:GLW) declined 8.08% over the past month, while its shares gained 107.73% over the past 52 weeks. Corning Incorporated (NYSE:GLW) has a market capitalization of $125.38 billion with a 52-week trading range between $66.14 - $271.78. Artisan Global Opportunities Strategy stated the following regarding Corning Incorporated (NYSE:GLW) in its Q2 2026 investor letter: Corning Incorporated (NYSE:GLW) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held Corning Incorporated (NYSE:GLW) at the end of the first quarter which was 91 in the previous quarter. While we acknowledge the potential of Corning Incorporated (NYSE:GLW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Corning Incorporated (NYSE:GLW) and shared The London Company’s insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Corning (NYSE:GLW) and its peers. Like many equipment and component manufacturers, electronic components companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include data centers and telecommunications, which can benefit companies whose optical and transceiver offerings fit those markets. But like the broader industrials sector, these companies are also at the whim of economic cycles. Consumer spending, for example, can greatly impact these companies’ volumes. The 8 electronic components stocks we track reported an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was 6.9% above. While some electronic components stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.8% since the latest earnings results. Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries. Corning reported revenues of $4.74 billion, up 17.1% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter topping analysts’ expectations but revenue guidance for next quarter missing analysts’ expectations. Wendell P. Weeks, chairman, chief executive officer, and president, said, “In the second quarter, we delivered outstanding results, and we upgraded our Springboard Plan to grow sales to an annualized run rate of $20 billion by the end of 2026, $30 billion by the end of 2028, and $40 billion by the end of 2030. We’re entering a new phase of accelerating growth, and we expect to deliver a sales CAGR of 19% from Q4 2026 to Q4 2030 – while growing earnings faster than sales, with significantly higher returns on invested capital and substantially more free cash flow.” Corning delivered the weakest guidance update in the group. Interestingly, the stock is up 3.7% since reporting and currently trades at $148.61. Is now the time to buy Corning? Access our full analysis of the earnings results here, it’s free. Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems. Allient reported revenues of $153.8 million, up 10.2% year on year, outperforming analysts’ expectations by 5.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $93. Is now the time to buy Allient? Access our full analysis of the earnings results here, it’s free. Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors. nLIGHT reported revenues of $82.59 million, up 33.8% year on year, exceeding analysts’ expectations by 4.6%. It was a satisfactory quarter as it also posted EPS in line with analysts’ estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly. As expected, the stock is down 43.4% since the results and currently trades at $42.72. Read our full analysis of nLIGHT’s results here. The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries. Littelfuse reported revenues of $738.8 million, up 20.4% year on year. This print topped analysts’ expectations by 5.4%. It was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. The stock is up 3.8% since reporting and currently trades at $406.79. Read our full, actionable report on Littelfuse here, it’s free. Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ:NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries. Novanta reported revenues of $265.8 million, up 10.3% year on year. This number beat analysts’ expectations by 1.3%. Overall, it was an exceptional quarter as it also put up EBITDA guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations. Novanta delivered the highest guidance raise of the whole group. The stock is down 9.8% since reporting and currently trades at $138.10. Read our full, actionable report on Novanta here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for Corning (GLW). Shares have added about 23.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Corning due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Corning Incorporated before we dive into how investors and analysts have reacted as of late. Corning Beats Q2 Earnings Estimates on Optical and Solar Growth Corning reported second-quarter 2026 results with non-GAAP earnings of 78 cents per share, up 30% year over year and 2.6% above the Zacks Consensus Estimate. Core revenues of $4.74 billion increased 17% and surpassed the consensus mark by 2.9%.Revenue growth was primarily led by Optical Communications and Solar segments. Enterprise Networks sales jumped 65%, supported by accelerating demand for generative artificial intelligence (AI) infrastructure. Core operating margin also expanded as higher volumes and improved execution strengthened profitability.Optical Sales Accelerate on AI DemandOptical Communications remained the company’s largest growth engine, with sales rising 32% year over year to $2.07 billion. Segment net income surged 77% to $438 million, reflecting strong demand and favorable operating leverage.Enterprise Networks drove the improvement as hyperscale customers expanded AI-related data center capacity. Corning also announced multiyear agreements with Amazon and NVIDIA, supporting further demand for optical fiber, cable and connectivity products. The NVIDIA partnership includes plans to increase U.S. optical connectivity manufacturing capacity tenfold and expand domestic fiber production capacity by more than 50%.Solar Business Posts Sharp GrowthSolar revenues climbed 90% year over year to $438 million, making the segment the company’s fastest-growing operation. Sales also increased 18% sequentially as Corning continued to scale its polysilicon, wafer and module businesses.The segment recorded a net loss of $7 million against a net income of $2 million a year earlier. Results were affected by an extended maintenance shutdown and equipment upgrade at the solar wafer facility. Management expects profitability to improve in the third quarter as production resumes and operating efficiencies strengthen.GLW Expands Core Margins and ProfitabilityCore gross margin improved 120 basis points year over year to 39.6%. Core operating margin expanded 190 basis points to 20.9%, while core operating income rose to $989 million from $770 million.Core net income increased 30% to $680 million. The stronger margin profile reflected higher sales volumes, a favorable business mix and improved scale. Core return on invested capital advanced 180 basis points to 14.9%, indicating better returns from the company’s asset base and growth investments.On a GAAP basis, operating income rose to $698 million from $573 million. Selling, general and administrative expenses increased to $608 million from $515 million, while research, development and engineering expenses rose to $299 million from $276 million.Corning’s Other Segments Deliver Mixed ResultsGlass Innovations generated sales of $1.46 billion, up 1% year over year. Segment net income increased 9% to $354 million, showing improved profitability despite modest revenue growth. Automotive sales advanced 2% to $471 million, while net income increased 4% to $82 million. The business also improved sequentially, with revenues rising 8% and profit increasing 17% from the first quarter. Life Sciences and Emerging Growth Businesses remained a weak spot. Revenues declined 15% year over year to $294 million, while the segment posted a net loss of $21 million compared with net income of $6 million in the prior-year quarter.Cash Flow Strength Lends SupportCorning generated $1.72 billion in operating cash flow during the quarter, up from $708 million a year earlier. Adjusted free cash flow reached $1.42 billion compared with $451 million in the prior-year period.Capital expenditures totaled $422 million. Cash and cash equivalents were $2.50 billion at June 30, 2026, while long-term debt stood at $7.76 billion. OutlookFor the third quarter, management expects core sales between $4.9 billion and $5 billion, representing approximately 16% year-over-year growth. Core earnings are projected between 85 cents and 89 cents per share, implying growth of roughly 28%.Corning continues to target an annualized sales run rate of $20 billion by the end of 2026 under its upgraded Springboard Plan. The company also aims to reach $30 billion by the end of 2028 and $40 billion by the end of 2030, supported by AI infrastructure, solar expansion and deeper customer partnerships. Since the earnings release, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 5.72% due to these changes. Currently, Corning has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Corning has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Corning Incorporated (GLW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fabrinet crashed 20% on decelerating Q1 guidance after running up 25% pre-earnings, dragging Marvell down 8% and Amphenol 7%. Coherent fell 12% and Lumentum dropped 10% despite posting datacenter revenue growth of 59% and 109% last quarter. Anthropic's $65 billion ARR missing $80 billion expectations and the 30-year Treasury hitting a 19-year high amplified selling across AI hardware. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn't make the cut. Grab the names FREE today. Shares of Fabrinet (NYSE:FN) are down roughly 20% at midday Tuesday, trading near $476 after the optical manufacturer posted a fiscal Q4 beat but disappointed a market already primed to sell AI infrastructure names. The move is dragging the whole optical and connectivity complex lower. Marvell Technology (NASDAQ:MRVL) is off nearly 8%, Amphenol (NYSE:APH) is down about 7%, Coherent (NYSE:COHR) is off about 12%, Lumentum (NASDAQ:LITE) has dropped roughly 10%, and Corning is down nearly 8%. After Monday's close, Fabrinet reported record Q4 revenue of $1.316 billion, up 45% year over year and above guidance. Non-GAAP EPS came in at $4.10 versus $2.65, an all-time high. Full-year revenue reached $4.64 billion, up 36%. CEO Seamus Grady called the quarter "exceptional, capping off a remarkable year of accelerating growth and strong momentum." View the 8-K filing here. The problem is positioning. FN ran up roughly 14% in the week and 25% in the month heading into the earnings report, and Q1 guidance of $1.375 billion to $1.425 billion implies a far more modest sequential step-up than the 45% YoY quarter just delivered. Add a disclosed $56.7 million loss on non-marketable equity securities and heavy capex that pushed Q4 free cash flow to negative $36.9 million, and a beat-and-raise turned into a "good but decelerating" setup. This is Fabrinet's largest earnings-day drop in the last six quarters, roughly 2.2x the typical post-earnings selloff. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn't make the cut. Grab the names FREE today. Fabrinet lit the fuse. Macro caught it. Over the weekend, Anthropic told investors ARR hit $65 billion at the end of July, huge growth but below the $80 billion-plus figures Gavin Baker had cited on The All In Podcast. Reuters then reported Anthropic's own 2028 revenue estimate of $190 billion to $200 billion, again below what some investors were modeling. The Wall Street Journal capped it, reporting that nine top tech companies carry roughly $3 trillion of off-balance-sheet commitments mostly related to AI, growing faster than traditional capex. The 30-Year Treasury hit a 19-year high today, and with the 10-year yield at 4.7%, near a 12-month high, long-duration AI hardware names are the natural fade. The Marvell and Amphenol declines reflect more than one contract manufacturer's guidance. Marvell just guided Q2 to $2.7 billion, implying 35% YoY growth, with CEO Matt Murphy citing "exceptional AI-related bookings." Coherent's fiscal Q4 datacenter revenue was up 59% YoY. Lumentum's Q4 revenue grew 109%. This is a positioning and sentiment reset landing on a red-hot cohort of optics, connectivity, and infrastructure suppliers behind the AI buildout (we profiled seven of these picks-and-shovels names, from power to cooling to networking, in a free report here: 7 Stocks Powering the AI Boom). Lumentum is still up roughly 736% over the past year, and Coherent 276%. Elevated expectations were the fuel; today they are the risk. Watch whether analyst targets Fabrinet, currently at a consensus $732, get trimmed into the close. NVIDIA reports next week, and its data center commentary will decide whether today is a shakeout or the start of something larger. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

The gain was set before the results crossed, and its optical peers rose with it. Coherent (COHR) stock gained about 9% on Wednesday, which reads like a market applauding a good quarter. The timing says otherwise. The fourth-quarter results did not cross until after the closing bell, so the entire session's gain was locked in before anyone outside the company had seen a figure, and the coverage that followed the release reported the stock slipping despite the beat. Its Optical Peers Rose That Same Session The tape points away from anything Coherent-specific. LITE gained 13.6% over the same window, MKSI 4.2%, IPGP 1.8%, against 0.3% for the S&P 500. The day was framed in advance as a same-session read on the AI networking build-out, with Cisco Systems also reporting after that close, and buyers who could not yet have seen either set of numbers paid up across the group. That is exposure to a theme, not to a company, and a single session can reprice an entire group. The Trefis High Quality Portfolio does not depend on the handful of largest technology names to produce its returns. Indium Phosphide, Not Orders, Sets The Ceiling Coming into Wednesday, the stock was already up about 205% over the trailing year. On a run like that, a beat and an above-consensus outlook are the price of admission, not a surprise. The fiscal Q4 report (ended June) put record revenue of $2.05 billion on the board, up 34% year over year and 42% excluding two businesses sold during the year, with data center and communications at 79% of the total. What the report did not settle is how fast that demand converts into product. Management names Indium Phosphide capacity as the primary constraint, and Indium Phosphide lasers are what sit inside its 800G and 1.6T transceivers. The company produced about 80% more of those lasers in the June quarter than a year earlier, and yields on its 6-inch lines in Texas and Sweden are running above those on its 3-inch lines. Watch The Ramp, Not The Reaction Management expects internal Indium Phosphide output capacity to double year over year by the end of the September quarter, a quarter ahead of the original plan, with guidance for that period of $2.2 billion to $2.4 billion. Beyond transceivers, first revenue from co-packaged optics is expected in the December quarter, carried by ultra-high-power CW lasers that its Texas plant has begun to ramp. Those two ramps decide whether the order book turns into revenue. The stock itself is the noisier variable: in the six sessions before Wednesday it rose 13.4% on one day and fell 14.2% on another, which is a wide swing for a business whose order book management describes as booked out. If you are sizing a position around the next print, the useful record is how this stock has actually traded through its own earnings, rather than how it traded into this one. A Ramp Is A Schedule, And Schedules Slip Coherent's demand looks booked, but its delivery runs through one material and a small number of plants, and that is timing risk no single position can spread. The Trefis High Quality (HQ) Portfolio is built the other way, as a system rather than a bet on one company's schedule. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

This article first appeared on GuruFocus. Jeff Auxier (Trades, Portfolio), founder and CEO of Auxier Asset Management and manager of the Auxier Focus Fund, recently submitted his 13F filing for the second quarter of 2026. Auxier's investment philosophy centers on identifying compelling, undervalued companies with strong fundamentals, competitive advantages, and shareholder-oriented management. His approach emphasizes generating substantial free cash flow, maintaining strong balance sheets, and seeking above-average returns with acceptable risk. The filing provides valuable insights into how Auxier is positioning his portfolio in the current market environment. Warning! GuruFocus has detected 7 Warning Signs with PM. Is PM fairly valued? Test your thesis with our free DCF calculator. Jeff Auxier (Trades, Portfolio) added a total of 10 new stocks to his portfolio during the second quarter of 2026. The most significant addition was Celsius Holdings Inc (NASDAQ:CELH), with 59,963 shares acquired, accounting for 0.24% of the portfolio and a total value of $1.76 million. The second largest new position was FedEx Freight Holding Co Inc (NYSE:FDXF), consisting of 4,234 shares, representing approximately 0.09% of the portfolio with a total value of $639,330. The third largest addition was Advanced Micro Devices Inc (NASDAQ:AMD), with 595 shares, accounting for 0.05% of the portfolio and a total value of $345,640. These new positions suggest Auxier is finding value in consumer beverages, logistics, and semiconductor sectors. Auxier also increased stakes in a total of 18 existing holdings during the quarter. The most notable increase was Grand Canyon Education Inc (NASDAQ:LOPE), with an additional 2,960 shares, bringing the total to 17,370 shares. This adjustment represents a significant 20.54% increase in share count, a 0.06% impact on the current portfolio, and a total value of $2.49 million. The second largest increase was Mastercard Inc (NYSE:MA), with an additional 745 shares, bringing the total to 29,266 shares. This adjustment represents a 2.61% increase in share count, with a total value of $15.03 million. These increases indicate Auxier's confidence in the education services and payment processing sectors. Jeff Auxier (Trades, Portfolio) completely exited two holdings in the second quarter of 2026. Digital Realty Trust Inc (NYSE:DLR) saw all 1,167 shares sold, resulting in a -0.03% impact on the portfolio. Forrester Research Inc (NASDAQ:FORR) was also fully liquidated, with all 13,076 shares sold, causing a -0.01% impact on the portfolio. These exits suggest Auxier may have found better opportunities elsewhere or identified deteriorating fundamentals in these companies. Auxier reduced positions in 118 stocks during the quarter, with the most significant changes being notable. The largest reduction was Corning Inc (NYSE:GLW), with 16,420 shares sold, resulting in a -12.96% decrease in shares and a -0.32% impact on the portfolio. The stock traded at an average price of $181.21 during the quarter and has returned -20.38% over the past 3 months and 89.74% year-to-date. The second largest reduction was Bank of New York Mellon Corp (NYSE:BNY), with 16,639 shares sold, resulting in a -10.17% reduction in shares and a -0.28% impact on the portfolio. The stock traded at an average price of $136.44 during the quarter and has returned 20.14% over the past 3 months and 41.91% year-to-date. These reductions may reflect profit-taking after strong performance or rebalancing toward more attractive opportunities. At the end of the second quarter of 2026, Jeff Auxier (Trades, Portfolio)'s portfolio included 185 stocks. The top holdings included 4.95% in Philip Morris International Inc (NYSE:PM), 4.24% in Alphabet Inc (NASDAQ:GOOGL), 4.2% in Microsoft Corp (NASDAQ:MSFT), 3.78% in Corning Inc (NYSE:GLW), and 3.52% in UnitedHealth Group Inc (NYSE:UNH). The holdings are mainly concentrated in 10 of all 11 industries: Consumer Defensive, Financial Services, Healthcare, Technology, Communication Services, Consumer Cyclical, Industrials, Energy, Basic Materials, and Real Estate. This diversified approach across multiple sectors reflects Auxier's commitment to maintaining a balanced portfolio while seeking undervalued opportunities with strong growth potential.

LITE surged 15% after revenue more than doubled to $1.01B in fiscal Q4 2026, with CEO Michael Hurlston noting pump-laser shipments are up 80% year over year and effectively sold out. SMCI jumped 16% and CRWV soared 20% on AI infrastructure prints that reinforced hyperscaler capex momentum alongside Lumentum's optical demand surge. JPMorgan raised its LITE target to $1,280 while Bank of America cut to $1,000, splitting on valuation as the stock nears its sell-side ceiling. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Lumentum (NASDAQ:LITE) shares are surging Wednesday, up 15% to $942 in midday trading after the optical components maker delivered a blowout fiscal Q4 2026 report. The move extends an already ferocious rally, with LITE stock up 123% year to date through Tuesday's close. The rally is spilling across the AI optics complex. Coherent (NYSE:COHR) shares are climbing 9% to $358, Corning (NYSE:GLW) stock is up 5% to $167, and Applied Optoelectronics (NASDAQ:AAOI) shares are advancing 3% to $139. The iShares Semiconductor ETF (NASDAQ:SOXX) is trading at $551, a risk-on tell for the broader chip complex. Lumentum reported fiscal Q4 2026 revenue of $1.01 billion, more than doubling year over year and topping the $988.6 million consensus. Non-GAAP EPS came in at $3.23, ahead of the $2.99 consensus, with non-GAAP gross margin reaching 50.4%. The guidance turbocharged the reaction. Lumentum sees fiscal Q1 2027 revenue of $1.225 billion to $1.275 billion, with EPS of $4.05 to $4.35. CEO Michael Hurlston stated the company will hit its $1.25 billion quarterly revenue target more than a quarter early, with pump-laser shipments up more than 80% year over year and "effectively sold out." Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Hurlston added that the 1.6T transceiver ramp is accelerating, and fiscal Q1 2027 should mark the company's first triple-digit OCS revenue quarter (above $100 million). Lumentum CFO Wajid Ali underscored the operating leverage embedded in the guide. Coherent, Corning, and Applied Optoelectronics are all trading higher on direct read-through from Lumentum's optical demand commentary. The catalyst is layered on top of same-evening AI infrastructure prints from Super Micro Computer (NASDAQ:SMCI), CoreWeave (NASDAQ:CRWV), and Nebius Group (NASDAQ:NBIS) that reinforced hyperscaler capex trajectories. SMCI stock is up 16%, CRWV shares are jumping 20%, and NBIS stock is soaring 27% in Wednesday trading. Ciena (NYSE:CIEN) shares are also rallying, up 13% as the optical systems supplier gets pulled into the same demand narrative. Sell-side responses split between fresh price target hikes and valuation caution. JPMorgan raised its LITE stock price target to $1,280 from $1,165 (Overweight), arguing Lumentum "sidestepped near-term concerns" on transceiver mix. Mizuho lifted its target to $1,140 from $1,100 (Outperform), citing margin upside and a "strong laser chip moat." The pushback: Bank of America cut its target to $1,000 from $1,100 (Neutral) even after raising CY2027 and CY2028 EPS estimates by 19% each, reflecting a de-rating across shortage-area names. Meanwhile, Morgan Stanley's Meta Marshall raised her target to $1,000 from $900 (Equal Weight), biased positively near term but flagging no clear catalyst until fall and next year's OFC conference. Investors can watch for whether today's gains hold into the close and whether follow-on analyst notes push targets higher into Thursday's session. The SOXX ETF is a broad semiconductor fund, so pure-play optics names remain a small slice and single-name catalysts get diluted at the ETF level. With LITE stock now trading near the high end of the sell-side range, position sizing discipline matters. Investors should consider trimming their exposure into strength if the move outruns the fundamentals, while watching Ciena's upcoming print and any hyperscaler capex updates for confirmation that the AI optical cycle still has room to run. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Corning Incorporated recently reported second-quarter 2026 results showing higher sales of US$4,505 million and improved earnings per share compared with a year earlier, while also completing a multi-year share repurchase program totaling 48,600,078 shares for about US$2.03 billion. The company paired these results with guidance calling for further year-over-year growth in third-quarter core sales and earnings, reinforcing investors’ focus on its role in supplying materials for data centers and AI-related demand. We’ll now examine how Corning’s stronger earnings and upbeat guidance, particularly around data-center demand, may reshape its existing investment narrative. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Corning today, you need to believe its core materials know how can keep turning AI data center, optical and specialty glass demand into durable earnings, while managing high capital needs and a premium valuation. The latest Q2 beat and strong Q3 guidance support AI and data center as the key short term catalyst, but they do little to reduce the bigger risk that demand from Gen AI and solar proves less robust than current expectations. The most relevant recent announcement is Corning’s Q3 2026 guidance, calling for about 16% year over year growth in core sales and about 28% growth in core EPS to US$0.85 to US$0.89. Coming on top of double digit year over year growth in Q2 sales and earnings, this guidance strengthens the near term growth story tied to data center and AI demand, even as longer term risks around tariffs and competition remain firmly in view. Yet investors should also weigh how quickly sentiment could reverse if AI related demand, or Corning’s pricing power around it, starts to weaken... Read the full narrative on Corning (it's free!) Corning's narrative projects $28.6 billion revenue and $5.1 billion earnings by 2029. Uncover how Corning's forecasts yield a $215.47 fair value, a 37% upside to its current price. Some of the most optimistic analysts already expected Corning’s revenue to climb toward about US$34 billion and earnings to around US$7 billion, so this AI driven upside and customer concentration risk could both look very different once these new results and guidance are fully reflected in fresh forecasts. Explore 6 other fair value estimates on Corning - why the stock might be worth as much as 71% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Corning research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision. Our free Corning research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Corning's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Outshine the giants: these 17 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GLW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

NETGEAR, Inc. NTGR reported second-quarter 2026 non-GAAP earnings per share (EPS) of 16 cents compared with the Zacks Consensus Estimate of 2 cents. The company’s bottom line improved 167% year over year.Quarterly net revenues of $168.6 million declined 1.2% year over year but topped the consensus estimate of $157.9 million by 6.8%. Revenues exceeded management guidance of $150 million and $165 million.The higher-margin Enterprise segment cushioned the performance, benefiting from growth in ProAV-managed switch products. Subscription and services annual recurring revenues were approximately $42 million. Image Source: Zacks Investment Research NTGR stock is up 2.4% in the pre-market trading session today. In the past year, shares of NTGR have declined 3.4% against the Communications-Components industry’s growth of 205.7%. Driven by the ongoing momentum for ProAV managed switch products, revenues from the Enterprise segment (roughly 53% of total revenues) jumped 7.7% to $89 million. The company surpassed more than 600 partners in its AV ecosystem and cited several customer wins in broadcast and education verticals.NETGEAR also highlighted higher uptake of Engage as well as the launches of Align and Insight 10.0 as steps to strengthen its Enterprise offering. The Consumer segment’s revenues of $79.6 million fell 9.4% year over year amid a tough memory-cost environment. Service Provider net revenues were $23.8 million compared with $27.2 million in the year-ago quarter, while the remainder of Consumer revenues was $55.8 million, down from 60.7 million in the prior-year quarter. NETGEAR, Inc. price-consensus-eps-surprise-chart | NETGEAR, Inc. Quote Management continues to prioritize gross profit over revenues in core home networking amid memory cost headwinds. Even with constrained sales, ARR from the home-networking business increased 15% year over year.Our estimates for Enterprise and Consumer stood at $83.9 million and $74.1 million, respectively.Region-wise, Americas revenues were $116.5 million, representing 69% of total revenues, compared with $116.3 million a year earlier. EMEA revenues increased 6% year over year to $36.4 million and represented 22% of revenues.APAC revenues fell 21.5% year over year to $15.6 million. The regional performance contrasted with the relatively stable Americas business and growth in EMEA. Non-GAAP gross margin expanded 360 basis points (bps) year over year to 41.4%. Enterprise non-GAAP gross margin reached 54.1%, up 740 bps, while Consumer non-GAAP gross margin declined 210 bps to 27.3%.Non-GAAP operating income was $4 million against an operating loss of $1.2 million a year earlier. The corresponding operating margin improved to 2.4% from negative 0.7%, while non-GAAP operating expenses were $65.8 million compared with $65.7 million. Cash, cash equivalents and short-term investments totaled $267.9 million at June 28, 2026, compared with $296.5 million at the end of the first quarter. Net cash used in operating activities was $8.5 million for the six months ended June 28.NETGEAR repurchased $12.9 million of shares during the quarter, bringing repurchases since the beginning of 2024 to more than $116 million. Approximately $75 million remained under the current authorization at quarter-end. For the third quarter of 2026, NETGEAR expects net revenues of $165 million to $175 million. Service Provider and related products revenues are projected at $22 million, down about 19% year over year.Management expects Enterprise growth to continue on strong ProAV demand, but memory costs and supply constraints are set to weigh more heavily on Consumer. The company expects roughly a 200-basis-point headwind to combined gross margin in the second half compared with the first half, with a greater impact in the third quarterThe GAAP operating margin is forecasted between (12)% and (9)%. The non-GAAP operating margin is estimated to be (3)% to 0%.GAAP tax expenses are anticipated to be a benefit of $0.5 million to $1.5 million, with non-GAAP tax expenses between $1 million and $2 million. NETGEAR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ciena Corporation CIEN reported fiscal second-quarter 2026 adjusted earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.46. The bottom line surged 290% year over year as AI-driven network investments continued to accelerate.Ciena’s quarterly revenues rose 39.5% year over year to $1.57 billion and surpassed the consensus estimate of $1.50 billion. Record revenues, expanding cloud demand and strong optical networking adoption fueled the performance. Shares of CIEN are up 324.7% in the past year.Corning Incorporated GLW reported second-quarter 2026 results with non-GAAP earnings of 78 cents per share, up 30% year over year and 2.6% above the Zacks Consensus Estimate. Core revenues of $4.74 billion surged 17%, surpassing the consensus by 2.9%.Corning’s revenue growth was driven by Optical Communications and Solar segments. Enterprise Networks sales jumped 65%, supported by accelerating demand for generative artificial intelligence infrastructure. Shares of GLW are up 138.9% in the past year. Viavi Solutions Inc. VIAV reported better-than-expected fourth-quarter fiscal 2026 results. Non-GAAP earnings of 34 cents per share beat the consensus estimate by 13.33%, while revenues of $443.1 million increased 52.5% year over year. Viavi Solutions’ robust performance was driven by sustained demand from the data center ecosystem and aerospace and defense markets, along with contributions from acquired Spirent product lines. The Network and Service Enablement segment remained the primary growth engine, delivering nearly 70% year-over-year revenue growth. Shares of VIAV are up 271.3% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report Viavi Solutions Inc. (VIAV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research