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Corning's shares surged by 3.2% in premarket trading on Tuesday, as the company exceeded Wall Street estimates with its forecast for Q4 profit. The glassmaker anticipates fourth-quarter core earnings per share of $0.96 to $1, surpassing the analyst consensus of $0.93. Additionally, Corning expects fourth-quarter revenue to range between $5.2 billion and $5.3 billion, also beating the consensus of $5.21 billion.

Core sales are expected to increase by around 19% compared to the previous year, while core earnings per share are projected to climb approximately 36%.

The optical communications unit experienced a 44% rise in sales to $2.38 billion, driven by the significant growth in Gen AI product sales, which more than doubled. Enterprise Networks sales expanded by 84%, with a notable more than doubling of sales of Gen AI products. Corning's CEO, Wendell Weeks, attributed the surge in Gen AI sales to increased adoption of the company's products, surpassing the growth rate of the GPU unit.

For the third quarter, core earnings per share stood at $0.91, exceeding the analyst estimate of $0.88. Core revenue reached $5.08 billion, also surpassing the consensus of $5.03 billion. Core sales grew by 19%, and core earnings per share increased by 36% compared to the prior year.

On a GAAP basis, sales amounted to $4.86 billion, up 18%, and earnings per share were $0.78, rising by 56%. Core operating margin improved to 22.7%, up from 19.6% a year earlier, while core gross margin expanded to 40.5%, from 39% a year ago. Adjusted free cash flow stood at $661 million, after capital spending of $545 million. Despite a 37% rise in Solar sales, the unit reported a net loss of $7 million, contrasting with a net income of $30 million a year earlier.

Glass Innovations sales declined by 3% to $1.51 billion. Corning successfully secured four long-term, multibillion-dollar customer agreements during the third quarter, including deals with Verizon and AT&T.