ALGN · Align Technology, Inc.

Align Technology delivered Q1'26 results exceeding expectations, with total revenues of $1.04 billion up 6.2% year-over-year, primarily propelled by Clear Aligner segment growth of 7.4% to $856 million on record 685.7 thousand case shipments, up 6.7% YoY. This reflected double-digit volume increases in EMEA, APAC, and LATAM, stability in North America, and gains across orthodontists (7.4%), GP dentists (5.6%), teens/kids (4.8%), and adults (7.8%). Imaging Systems and CAD/CAM Services revenue dipped 12.1% sequentially to $184.1 million due to Q1 seasonality in capital equipment but grew 0.9% YoY, supported by iTero Lumina adoption, services, and lower-priced scanner mixes including leasing. GAAP gross margin held at 70.8% despite unfavorable FX impacts, with non-GAAP at 71.8%; operating margin was 13.6% (non-GAAP 21.5%), and diluted EPS reached $1.57 (non-GAAP $2.58). CEO Joe Hogan highlighted execution on strategic priorities, resilience amid global dynamics, and DSOs as a volume driver. Balance sheet remains strong with $1.06 billion in cash. The company completed a $200 million repurchase from its $1 billion program (with $800 million remaining) and plans another $200 million starting May 2026, signaling confidence. Guidance reaffirms FY2026 revenue growth of 3-4%, mid-single digit Clear Aligner volumes, and non-GAAP operating margin of 23.7%, incorporating ~100bps FX benefit. Q2 outlook anticipates $1.04-1.06 billion revenue (3-5% YoY growth), sequential Systems recovery, and stable ASPs, prudently factoring Middle East conflict impacts on demand which were immaterial in Q1. Tariff shifts post-Supreme Court ruling expected non-material. Capital expenditures guided at $125-150 million for tech upgrades and capacity.