Ladies and gentlemen, thank you for standing by. Welcome to the first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star 11 on your telephone. You will then hear an automated message advised and your hand is raised. And to withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Chris Keenan, Director of Investor Relations. Please go ahead. Thank you and good morning.

Welcome to Corning's first quarter 2026 earnings call. With me today are Wendell Weeks, Chairman and Chief Executive Officer, and Ed Schlesinger, Executive Vice President and Chief Financial Officer. I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports. You should also note that we will be discussing our consolidated results using core performance measures unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the For the first quarter, differences between GAAP and core EPS include constant currency adjustments as well as primarily non-cash items, including acquisition-related costs, discreet tax items and other tax-related adjustments, and restructuring impairment in other charges and credits. A reconciliation of core results to the comparable gap value can be found in the Investor Relations section of our website at Corning.com. You may also access core results on our website with downloadable financials in the Interactive Analyst Center. Supporting slides are being shown live on our webcast, and we encourage you to follow along. They They're also available on our website for downloading. And now, I'll turn the call over to Wendell.

Thank you, Chris, and good morning, everyone. Today, we announced excellent first quarter 2026 results. Year-over-year, sales grew 18% to $4.35 billion. EPS grew 30% to $0.70. cents. Operating margin expanded 220 basis points to 20.2 percent. Gross margin expanded 120 basis points to 39.1 percent. And ROIC expanded 190 basis points to 13.5 percent. Now these excellent results were led by optical communications, and solar. Our performance this quarter serves as yet another proof point of springboard's powerful trajectory. Versus our quarter four, 2023 springboard starting point, we grew sales 33 percent and EPS 79 percent, and we expanded operating margin in ROIC by 390 basis points and 470 basis points, respectively. As you remember, on our last earnings call in January, we upgraded our internal springboard plan to add $11 billion in incremental annualized sales by the end of 2028 from our quarter four 2023 starting point. Now, based on increasing demand for our innovations, we actually plan to upgrade again and extend our plan through 2030 at our investor event in New York City. on May 6th. We will share our improved springboard plan and the key drivers as well as a particular focus on the latest developments in our Gen AI portfolio. So today, I want to get into more detail about our first quarter results and highlight some of the topics that we'll cover next week. I'll begin with solar. In quarter one we grew solar sales 80% year over year. So let's talk about what's going on in this new market access platform. We have previously shared our goal to build a $2.5 billion revenue stream with profitability above the corporate average by 2028. We're making key strategic progress on the commercial and policy fronts. We now participate in the solar industry through three major manufacturing operations. First is solar polysilicon. We did a business where we had a minority ownership and we were receiving about $50 million a year in cash flow in the form of dividends. And we've turned it into almost a one billion dollar revenue business and we've been able to do all of this with customer funding and government support all while generating positive cash flow every year we activated idle assets to serve the need for domestic solar polysilicon now that that capacity is online you can see the incremental sales in our results. The business performed above our corporate operating margin target of 20% in the first quarter. Now the focus is on improving the productivity of our operations to further improve our throughput and profitability going forward. Moving down the value chain, We added the capability to transform our polysilicon into higher-value, domestically-made solar wafers, all integrated together on our campus in Michigan. To leverage our advantage position in polysilicon, we built the largest solar ingot and waper facility in the United States in just 18 months. in order to establish a commercial footprint and to take advantage of government incentives in a very short time frame. Importantly, we have committed customers for our way for output. Now, we had to move fast. Part of that meant bringing up our facility on temporary power and water systems because we couldn't get the utilities to build the permanent systems on our schedule. Our ramp is running behind our ambitious plans. Our wafer facility will undergo an extended maintenance shutdown, and we will transition to a permanent power system and repair and upgrade production equipment to increase throughput in future quarters. To cover this transition, we have built into our second quarter guidance $30 million of additional expense versus the first quarter. We've also successfully entered the module business. We saw that 90% of the mass in a solar panel is materials in which we have adjacent world-class capabilities. We make the best technical glass in the world. We apply coatings to our strength and vapor deposition, and we have a long-standing leading position in polysilicon for semiconductor materials. So not only is this an opportunity that's ripe for innovation, but it's also right in our wheelhouse. Therefore, we acquired and ramped a module manufacturing facility in Arizona to position ourselves for innovation as we progress the business. That factory is now up and running. And you can see incremental sales from this operation in our results. Profitability in this business should cross over our corporate operating margin target of 20% in the second quarter. We are now in the midst of adding capacity to this operation. And as it comes online and gets through our startup period, this will further accelerate our growth and profitability. Altogether, we are seeing strong strategic and commercial success across our solar market access platform. As a result, we will be increasing our sales plan for the solar map as part of our springboard upgrade on May 6th. Turning to optical communications, we saw robust demand across the business and continue to improve our productivity with year-over-year sales growth of 36%. In our enterprise business, early in the quarter, we announced our multi-year up to $6 billion agreement with Meta to support their apps, technologies, and AI ambitions using our newest innovations in optical fiber, cable, and connectivity solutions. On our last call, I shared that we were in the process of concluding other agreements of the same size and duration as the meta agreement. We now have concluded two more large, long-term agreements with hyperscale customers, and they are each similar in size and duration to the meta agreement. Now, I know we will get questions on who the other customers are and the specifics of our arrangements. However, our philosophy is to let our customers decide when and where they choose to make announcements on their critical supply chain decisions. I can share that these deals are very significant. and they share the risk and rewards of the required expansions with our strategic customers. For long-time followers of Corning, you would recognize the model as quite similar to our extremely successful Gen 10 1⁄2 agreements with our display customers. We're taking the proven approach in our glass businesses and applying it to optical communications. Our partnership with Lumen Technologies in the carrier space is another good example of this approach. We previously shared our agreement with Lumen to provide our new Gen AI fiber and cable system that enables them to fit anywhere from two to four times the amount of fiber into their existing conduit. In February, Lumen shared that we've expanded and extended our multi-year agreement to ensure they have access to the newest state-of-the-art fiber technology. Lumen and Fiber to the Home contributed to carriers' growth in the quarter. You'll recall, at the beginning of Springboard, we pointed out that fiber-to-the-home would recover strongly during the planning period. We're seeing just that in our sales. As noted in public statements, carriers are planning to expand their fiber networks going forward. The typical run rate for homes passed by our large carrier customers has increased about 50% since the beginning of Springboard. Overall, based on our strong progress in optical, we will be upgrading our sales plan for the business through 2030 at our investor event next week. We have a lot of news to share next week. As part of our activities, we're planning to ring the bell at the New York Stock Exchange to celebrate our 175th birthday, the day after our May 6th. It is perhaps fitting that as we celebrate 175 years, we will share a significant upgrade to our springboard plan with all of you. Highlighting that we are in one of the most exciting growth periods in our long, long history. The demand for our innovation capabilities has never been stronger. We are seeing the power of our innovations drive growth across all our market access platforms. Thank you for being with us on this journey. And I look forward to seeing you next week.

Thank you, Wendell. Good morning, everyone. Quarter results show continued excellent performance on our springboard plan. We delivered our eighth consecutive quarter of year-over-year sales growth while continuing to enhance the financial profile of the company. Year-over-year in Q1, sales grew 18% to $4.35 billion and EPS increased 30% to $0.70 per share, both coming in at the high point of our guidance. operating margin expanded 220 basis points to 20.2 percent roic grew 190 basis points to 13.5 percent and we delivered robust free cash flow of a hundred and let's look at our progress to date q4 2023 springboard starting point to q1 2026 we grew sales 33 percent improved operating margin by 390 basis points, grew EPS 79 percent, and expanded ROIC 470 basis points. In total, this represents a significant enhancement to our financial profile, and establishes a new base from which to launch another round of strong, more profitable growth, and we see even stronger growth ahead. On our last call, we upgraded our internal springboard plan to add $11 billion in incremental annualized sales by the end of 2028 and $6.5 billion by the end of 2026. Now, we have another quarter behind us, and as you can see, sales came in above our guided range. I'll share more on our second quarter guidance in a moment, but you can see we expect to continue performing well on our upgraded plan, capturing significant sales growth with powerful incremental profit and cash flow, and we expect our momentum to build. turn to our business segment results. Today, we announced changes to our segment reporting, effective first quarter 2026, which better align with our current operating and management structure. Here's a breakdown. First, we'll now report the results of our solar business in its own segment. Since the launch of Springboard, we've communicated that a key element of our plan is to build at least a $2.5 billion revenue stream in this space. Previously, we reported our solar business results within Hemlock and emerging growth businesses. We've advanced the business to the point that it now warrants its own segment, which will include our solar and semiconductor polysilicon sales, as well as our wafer and module businesses. As Wendell Well shared with you, we are making key strategic progress on the commercial and policy fronts. We now participate in the solar industry through three major manufacturing operations, polysilicon, wafers and modules. Our solar ramp continues with our polysilicon business performing above our 20% corporate operating margin target in the first quarter and our module business on track to cross over in the second quarter. Second, we are combining display and specialty materials into a new segment called glass innovations. Included in this segment are our glass and glass ceramic businesses that primarily serve the consumer electronics and semiconductor industries. These businesses share core technologies, manufacturing capabilities, and market access, and we have aligned them under a unified management structure to increase operational flexibility, improve efficiency, and strengthen our leadership positions in the markets we serve. Our automotive and optical communication segments remain unchanged, and all other results will be grouped as life sciences an emerging growth business. Now, I'll turn to segment results. In optical communications, sales were $1.8 billion, up 36% year-over-year, driven by robust demand for Gen AI products. Net income was $387 million, up 93% year-over-year. Sales in both enterprise and carrier rose 36 percent year-over-year. In enterprise, building off our multi-year up to six billion dollar agreement with Meta, we entered into large long-term agreements with two additional hyperscale customers, and we are working to conclude others. And in carrier, we are seeing growth stemming from both data center interconnects and strong demand for fiber to the home. Moving to glass innovations, first quarter sales were $1.4 billion, up $14 million, or 1% year-over-year. Net income was $324 million, up $7 million year-over-year. Net income margin for this new segment was 22.8%. Display glass volume for the quarter was down slightly sequentially, better than our expectations of down mid-single digits. Demand for premium Gorilla Glass products remains resilient despite rising memory costs. We expect memory prices to significantly impact the market in 2026. we expect to outperform the market driven by strong demand for our innovations. As part of a continued focus on innovation and technology leadership, we recently launched Corning Gorilla Glass Ceramic 3, the latest example of how we are extending our material science capabilities to meet evolving device requirements. This reinforces the strength of Corning's innovation engine and our Moore Corning approach. translating advanced glass and ceramic science into higher value applications that expand our long-term growth opportunities and in the semiconductor market we continue to see short-term and long-term opportunities for advanced optics products driven by the secular growth drivers in high performance computing and AI driven data center build outs as chip makers ramp up production to meet the demand around generative AI, we expect to see higher demand for our EUV lithography business. Longer term, we expect growth in this segment to be driven by the adoption of our glass innovations. Turning to automotive, Q1 sales were $437 million, down 1% year over year. the global automotive vehicle market was down 3%. Higher heavy-duty sales in Europe and India largely offset a weaker heavy-duty market in North America. Net income of $70 million was up $2 million or 3% year-over-year. We remain focused on executing our more corning growth strategy as underlying secular trends that are favorable to corning remain intact and will drive adoption of more larger and higher resolution displays as well as new emission control products across the global automotive market and in solar sales were three hundred and seventy million up a hundred and sixty four million or eighty percent year-over-year net income was seven million dollars down twenty million dollars year-over-year as Wendell mentioned we have a goal to build a two and a half billion revenue stream in this map with profitability above the corporate average by 2028 we're making key strategic progress on the commercial and policy fronts we participate in the solar industry through three major manufacturing operations polysilicon wafers and modules our solar ramp continues with our polysilicon business performing above our 20% corporate operating margin target in the first quarter and our module business on track to cross over in the second quarter or Our first quarter actuals included about a four cent EPS impact as we continued to bring up solar wafer capacity to meet committed demand. Our second quarter forecast includes an incremental 30 million of expense versus the first quarter for an extended maintenance shutdown including the transition to a permanent power system. We will repair, upgrade, and modify our production equipment to increase throughput in future quarters. Sales and life sciences and emerging growth businesses were flat year-over-year. Net income improved year-over-year, but was down sequentially. Now, I'd like to take a moment to discuss operating expenses. In the quarter, OpEx was $823 million. Included in Q1 OPEX was higher variable compensation expense, including stock-based compensation. The primary driver of the higher expense was the significant increase in our stock price in the quarter. With that, let's turn to our outlook. In the second quarter, we expect to grow sales about 14% year-over-year to approximately $4.6 billion and to grow EPS about 25% year-over-year to a range of $0.73 to $0.77. And as I just mentioned, our second quarter forecast includes an additional $30 million of expense in Q2 versus Q1 as our solar wafer plant undergoes an extended maintenance shutdown. Even with the extended shutdown, we expect Q2 26 to be one of the strongest quarters in a string of very strong quarters. For the full year, we expect to generate significantly more pre-cash flow year over year, while continuing to invest strongly in our growth vectors aided by customer financial support. Now, let me spend a minute on capital allocation. As we've previously shared, we prioritize investing in organic growth opportunities that drive significant returns. Overall, we believe this approach creates the most value for our shareholders over the long term, and our investors have confirmed they see the value in this approach. To deliver the larger growth opportunity in our upgraded springboard plan, we need to invest. And as we invest, we will use a variety of tools to share the cost and risk of our required expansions with our customers to ensure we generate strong returns on our investments and secure our planned cash flows. Also seek to maintain a strong and efficient balance sheet. We're in great shape. we have one of the longest debt tenors in the S&P 500 our current average debt maturity is about 20 years and we have no significant debt coming due in any given year finally we expect to continue our strong track record of returning excess cash to shareholders we already have a strong dividend and therefore as we go forward our primary vehicle for returning cash will be share buyback stepping back we feel great about our progress on springboard our performance is outstanding and we're energized about the tremendous opportunity for value creation built for our shareholders since the start of springboard we've captured significant sales growth and we've transformed our financial profile establishing a strong foundation for future growth, and we expect our momentum to build as we capture a strong set of opportunities across the company. At our May 6th investor event in New York City, we plan to upgrade and extend our springboard plan through 2030, share the underlying growth drivers in our maps, and detail the technical drivers of growth in our enterprise business, as well as our new photonics map. I look forward to sharing more with you next week at our investor event. And with that, I will turn things back over to Chris for Q&A. Thank you, Ed. Operator, we're ready for the first question.

Thank you. And as a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. And to withdraw your question, please press star 1-1 again. The first question will come from John Roberts with Mizzouho. Your line is open.

Thank you. On the new hyperscaler agreements, are there material glass fiber draw capacity expansions associated with that or maybe a different way? Is the extension to 2030 going to involve glass draw capacity expansions?

These agreements taken in total are driving so much growth, John, that you're going to see expansion across all of our major optical operations, including expanding our fiber operations. What we seek to do with these arrangements is to make sure we're appropriately sharing the risk of the required expansions with our customers in a way that assures return.

Okay, and then when you complete and you're fully ramped on solar, what would be the approximate breakdown between semiconductor wafers and modules?

So I would say that we're running at about a half-a-billion-dollar semiconductor business. That business will continue to grow over time, and the remainder of all of that business or all of that segment and all the growth will come in the solar space.

And primarily wafer?

I'm sorry, did I say that again, John?

Primarily wafer?

Wafer and module. Next week, we'll share a little more on that. What we're seeing is demand for our downstream manufacturing operations be so strong as that we will raise our sales plan above the $2.5 billion that we shared with you previously.

Thanks, John.

Next question will come from Wamsi Mohan with Bank of America. Your line's open.

Yes, thank you so much. I was wondering, Wendell, if you could maybe characterize the state of supply-demand balance in the optical communications market. We're hearing a lot of anecdotal talk about price increases. some of your competitors internationally have raised prices within fiber and so just curious you know how tight are you seeing the current state are you a supply enough to meet meet the demand and are you seeing the evolution of

pricing for both law fiber and connect rice cables so we are seeing a very robust demand for our innovation sets for me. What we're doing, entering into these very long-term agreements, because the growth rate is accelerating so robustly. And so what we're doing is, given that we are going to be undertaking expansions across our opticals. What we seek to do is do three things that are buried in these big agreements. First, we're trying to serve and we're trying to get very balanced coverage so that we aren't dependent on any one model maker or any one AI cloud provider because though clearly AI is going to make a powerful difference in worldwide economies, picking specific winners and losers I think is problematic. So what we seek to do is take this very robust demand that we have and we want to serve all of the customers and do it in a very balanced way. And then as part of those, what we seek to do is appropriately share the risk of the required expansions to support this rapidly accelerating growth. So I'm just going to answer your question in sort of three layers. So that is the first layer, which is we, given our strong profitability in this business, Being able to meet the growth requirements and to de-risk those for our shareholders is our top priority to do with the strong demand for our innovation. You are correct that the pricing environment is clearly favorable for those who have capacity. Our approach to increasing our profitability, though, comes primarily from how do we uniquely innovate and how do we uniquely manufacture our products rather than focusing on price increases of commodity-based products. So what we try to do here is we're introducing these new innovations that our customers talk about and hear us talk about. And what they do is they create more value for our customers by reducing their total installed cost. And then we share that value creation with them, which increases our profitability much more rapidly and sustainably over time than simply capturing any particular near-term move, whether it be on bare fiber or loose tube cable or anything like that. Does that make sense to you, Wamsi? Did I answer your question?

Yeah, no, that's helpful, Wendell. If I could just follow up on your very helpful analogy with display Gen 10.5 relative to the optical business, I was wondering if you would venture to say that the margins that have historically been extremely strong in display, are we entering an environment in optical where you could eclipse gross profit margins or our profit margins greater than display given the strength and momentum and the size of the business if you could extend that analogy there that'd be super helpful thank you so the simple answer is

yes. And what will be critical for that will be the rate of adoption and the value of the innovations that we create here and really the size of the competitive moats that we're able to build. Our goal is to create so much value that, you know, this becomes a star for us as a company.

So that's what we're seeking to do. And Wamsi, I would add one other thing just I think that's important for you and investors to think about is, you know, we're a capital-intense company across all of our businesses, but if I think about optical in general, it's a little less capital-intense than a business-like display where you're purely melting and forming glass. So your return on invested capital – and I think we will see that drive a lot of – so your financial model is a little different. It will require investment, but your return will be very high in that space. Yeah, I think that's a super helpful one.

Thank you. Thanks, Wendell. That correctly is correctly making, in my answer, what I am driving at is the totality of that. Turn on invested capital and exceed our glass businesses, and that's what we're aiming at.

Excellent. Thank you so much. Thanks, Wamsi.

Next question comes from Josh Spector with UBS. Your line is open.

Yeah, hi. Good morning. I had two questions on margins, kind of a similar vein of thought here in that if I look at what you did in the first quarter, I mean, sequentially, your incremental margins were north of 50 percent in optical year over year. They're close to 40 percent. So I don't know if you can break that apart in terms of operating leverage versus price mix as the larger contributor to those two pieces. And then secondly, you've talked a lot about next week. You're going to talk more about springboard, upgrade your sales plan. Do you expect to have a new margin target that you're going to put out there next week? Thanks.

Yes. So let me take the first one, Josh. I'm not going to break it apart into all those piece parts, but I will say that a large driver of what we're going to see in optical, and we actually did have a great net income margin, which we report for each of our segments in Q1, is the impact of moving to our new innovations. and those products, I think as Wendell was sharing in his previous answer, that sort of moves us up in margin over time. In a way, it's like capturing price. It's a little different than comparing apples to apples on price. If we can sell more solutions, our new innovations, our margin goes up. We're certainly getting operating leverage, and growing is certainly going to help, But I think that's a good way to think about it in optical communications. And I think rather than steal away anything from our next week event, hopefully you'll tune in and hopefully we'll see you there and we can talk about all the impacts of our financial profile and how we expect to see growth in the future.

Okay, thank you.

Next question. And our next question comes from Asia Merchant with Citi. Your line is open.

Great. Thank you. And a good set of numbers here. Looking forward to seeing you guys next week. A question I've often got from investors this quarter about these long-term agreements with hyperscalers and model builders. Are you able to, within these contracts, raise prices over the long term? Or how are you factoring that in, given the extent of these multi-year agreements that could stretch over three to five years. And one more, if I can. The solar drag, you know, I think you talked about an incremental 30 million here related to some power-related stuff. When should we expect the drag on these expenses to be completed, both from, you know, what was happening in 1Q plus the incremental that you're talking about in 2Q? Thank you.

Why don't you take the second part first, and then I'll tackle the long-term agreements.

Yeah, hi, I'll see you. So on solar, maybe just take a step back for a second. We're doing, you know, we have three big things we're doing, adding polysilicon capacity, module capacity, and wafer capacity. And on polysilicon, you know, we're in great shape. We will get better. We have an opportunity to drive more productivity and improve our profitability there, but that's not causing us any kind of a drag. And on modules, we're adding capacity, but we're actually starting to get pretty close and we'll cross through our corporate operating margin target of 20% in the second quarter and we'll continue to add capacity there. So I think those two things are in a good place. In wafers, which is probably the most complex thing that we're trying to get done, that's really where the impact is. And what I tried to say in my section of our prepared remarks was that we had a drag which continues from ramping that facility, and now we have the impact of this extended maintenance shutdown. When you take that in aggregate, you know, it's probably close to seven cents of EPS, you know, in the second quarter guide that we gave. So just so you have sort of that as we're all on the kind of same page. so it impacts our margin it impacts our EPS and it also reduces our sales because we're shut down for a period of time here at least you know a couple months let's say in the second quarter and so you know our our sales guide reflects that it will get better I think calling the exact timing of when we get to the operating margin target is very hard to do because we have a lot of work I would expect it to sort of sequentially get better over time. You know, so once we bring the factory back up online, that'll have some impact in a positive way, and then we'll continue the ramp of adding all the capacity.

This one, before I shift to your first question, is pricing environment looks very good for us in solar. Demand environment looks very good for us in solar. Policy environment looks very good to us. manufacturing operations we just have to get transferred over to our permanent systems here wafers definitely happen person is that okay on that one and can I turn to the first question yep thank you so drivers by to share a little more of that thanks asia next question thank you next question comes from

Samick Chatterjee with J.P. Morgan. Your line is open.

Hi. Thanks for taking my question. Wendell, if I can just ask you to go back to your comments on the hyposcleral agreements. And curious, you mentioned this a few times in terms of sharing the risk with your customers. How should we think about what that actually implies? Does it imply sort of take or pay contracts? Does it imply capital commitment from them? What are you getting as part of these incremental hyperscale agreements to share the risk. And then with the initial agreement that you had with Meta, our impression was scale-up wasn't necessarily a part of that. It was primarily focused on scale-out. As we think about these two incremental hyperscaler wins, do they look very similar to that framework that Meta had, or does it include scale-up incrementally?

Hey, Samit. Let's answer the sort of easy part of the question first and then the hard one. okay so the easy part uh the simple answer is yes all the above uh you're going to see a blend that best meets our customers utility preference how they would like to share the risk for us what's just important is that we share that risk and we have a variety of different tools to do it and you've named a number of them you have funding you have guaranteed revenue you can have price you have all of our dating share agreements you can have all sorts of things like that all that are aimed at how do we and different ones of our customers just have different risk profiles and different things they like from that overall tool set so if you could be sitting in the room with us, which I'm sure you would like to do, Samik, right? What you would see is us explaining that tool set and then them saying, okay, which do I What is the blend of that? First question, Samik, and then I'll do the hard part.

No. Yeah, please.

The fiber cable and connectivity that we – part of when I say what we do is we seek visibility on what exact products to make. What we are talking about is the first sort of phases of this. These are long-term agreements. As you get out longer term, what we're engaged with our customers about is how will your demand for our products change as more and more links fall to. When we talk about photonics, we're talking about creating a new map that is aimed at. So those will be separate again, the hyperscaler. Is explanation helpful, Samik?

Yes, yes. Thank you, and see you next week, Andrew.

Thanks, Samik. Next question, please.

Next question is from Metamarsha with Morgan Stanley. Your line's open.

Great, thanks, and congrats on the quarter. Maybe just stepping to the carrier piece of the business for a second, probably the best quarter in a number of years. I guess I just wanted to get a sense of, you know, you mentioned fiber to the home plans increasing. Are you guys starting to see some of the BED demand? Do you think that you're gaining share in that market? Just a little bit more visibility to what you're seeing on the carrier side would be helpful as a starting point.

Speed is still quite small, and we will always secure a hunk of our capacity to be able to serve the underserved and the bead customers, but that's not what's really driving these numbers. What's driving it, and you actually see it a lot in the news now, is just the ascendancy of fiber to the home. that versus other technologies that people used to ask me a lot about, fixed wireless, hybrid fiber coax, whether satellites make a difference. And all you're just seeing is the ascendancy of our technology from the big carriers is what's primarily driving these numbers. And they've been very public about it and their decisions matter.

Got it. And then maybe just a follow-up question. I expect we'll hear more next week, but just within specialty, within glass innovations, just are there any innovations coming this year that you would expect to drive kind of material upside to that business during this year? Thanks.

Because who I'll be interpreters speaking for. Let me reflect on the appropriate way to answer that question. Thank you for the gift of giving me till next week to do so.

Great. Thanks so much.

Thanks, Mita. Next question, please.

Next question is going to come from George Nodder with Wolf Researcher Lines Open.

Hi, guys. It's Brennan Rogers on for George. Quick one. Can you guys share any more details on kind of the split between carrier and enterprise growth rates this quarter? um you know a sense for like the relative size of those at this point or just um broad strokes um enterprise versus carrier growth rates um and then another quick one on the photonics platform that we should expect to hear next week um our lta is going to be kind of a mechanism that you guys are going to pursue there um you know obviously oems are different um you know sort of customer

set. So anything you could share there. Thanks. Yeah, I'll take the first one. So both Carrier and Enterprise grew 36% year over year in Q1. So just coincidentally, that equals the segment growth rate. You know, Enterprise continues to grow really well, and we continue to outperform sort of the broader metrics, I would say, in that space. We'll certainly share more about that next week in carrier maybe building a little bit on what Wendell said we had a great quarter you've got fiber to the home you've got data center interconnect in there I wouldn't take q1's growth to be indicative of a growth rate for carrier because you know you whatever happens in any given quarter or what happened in the prior year and that quarter could have an impact on that rate but we certainly expect to see growth in the carrier space over you know the horizon of our springboard plan and then you know on your second question I think we'll address our new photonics map in more detail next week what's in there how we're thinking about it the growth drivers and and how we expect that to play out over the next several years yes and but you really

the change from previous dialogues that's with me recently I hadn't believed that we would begin, we would see significant in the scale up. I should say it did not rise to the probability level. What has happened is technical progress will share what's driving that change on our part and that upgrade so that the option rate. Last question. Thank you. And the last question

is going to come from Martin Yang with Oppenheimer. Your line's open. I thank you for taking my

question the question is on capital expansion plan for the year you haven't raised the capex plan despite the two new agreements so were those two new agreements already incorporated when you originally gave the capex plan for the year or does that suggest a timing which means their capex ramp starts beyond

2026 thank you yeah thanks Martin so we had given guidance last quarter that capex would be about 1.7 billion you know we could be a little above that number this year that's certainly true as Wendell said earlier we will definitely be investing across all of our product sets in optical we have tools we use to share that investment with our customers so to some extent there's some impact in there, and then, you know, we'll certainly see investment continue into next year, and we'll share more next week on how we're thinking about it.

And the short version of this is when we shared the CapEx, the guys who we had in our mind, because these dialogues take a long time that we were going to be able to with our customers. And because the demand is coming at us relatively rapidly, we would have had to have been in progress already on those expansions. So I think that is – I agree with Ed's commentary on CapEx. I think going forward, what's intriguing will be how does the various funding and risk sharing work and how that impacts our overall cash flow overall about having accelerated and really not going through any sort of significant dip cycle risk sharing agreement are aimed, which I bet it is.

Thank you, Wendell.

Thank you. and that will conclude our question and answer session I will turn it back over to Chris for closing remarks thank you for joining us and before we close I

wanted to let everyone know that we'll be hosting an investor event at the New York Stock Exchange on May 6th we'll also be attending the JP Morgan global technology media and communications conference on May 19 and additionally we'll be scheduling management visits to investor offices in select cities Finally, a web replay of today's call will be available on our site starting later this Once again, thank you all for joining us. Operator, that concludes our call. Please disconnect all lines.

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