The company now expects a revenue decline of between 3% and 5% in its optical communications segment, compared with its previous forecast of a low-to-mid-single digit percentage increase.
Analysts polled by FactSet were forecasting a 4.3% increase to about $4.37 billion.
The company expects third-quarter display technologies prices to be flat sequentially, and full-year glass prices to decline by a low-to-mid-single-digit percentage. Analysts expected that segment to increase 2.1% to $3.35 billion.
Corning has supplied the glass for Apple's iPhone since it debuted in 2007 and also supplies the glass for the Apple Watch.
"This award underscores Apple and Corning's shared belief in the vital role that ingenuity plays in creating industry-leading products, and the pride that both companies take in applying American innovation and advanced manufacturing to solve some of the world's toughest technology challenges," Apple said in a statement announcing the deal.
The award will aid in Corning's research and development into new glass processes, equipment and materials.
Corning fell 7.83% to $27.70.
Apple is a holding in Jim Cramer's Action Alerts PLUS charitable trust.