Align Technology (ALGN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.04 billion, up 6.2% year-over-year, driven by record clear aligner volumes, higher ASPs, and favorable foreign exchange rates.

• Clear aligner shipments hit 685,700 cases, up 6.7% year-over-year, with double-digit growth in EMEA, APAC, and Latin America, and stable North America.

• Growth was broad-based across orthodontists, GPs, and all patient segments, with strong adoption of new products, digital workflows, and DSO channel momentum.

• Net income was $113 million, with diluted EPS of $1.57, and operating margin improved to 13.6%.

• Strategic initiatives in financing, digital platforms, and clinical support are driving engagement and case volume growth.

Financial highlights

• Q1 clear aligner revenue was $856 million, up 7.4% year-over-year; systems and services revenue was $184.1 million, up 0.9% year-over-year.

• Overall gross margin was 70.8% (non-GAAP: 71.8%), up 1.4 points year-over-year.

• Q1 operating income was $142 million (13.6% margin); non-GAAP operating margin was 21.5%.

• Q1 GAAP EPS was $1.57, up $0.31 year-over-year; non-GAAP EPS was $2.58, up 21%.

• Free cash flow was $120.3 million; cash and equivalents totaled $1.06 billion as of March 31, 2026.

Outlook and guidance

• Q2 2026 revenue expected at $1.04–$1.06 billion, up 3–5% year-over-year; clear aligner volume and ASP to rise sequentially.

• Q2 GAAP operating margin expected at 16.4%, non-GAAP at 21.5%.

• FY 2026 revenue growth reaffirmed at 3–4% year-over-year; clear aligner volume growth mid-single digits; GAAP operating margin slightly below 18%, non-GAAP at 23.7%.

• Capital expenditures for 2026 expected at $125–$150 million.

• Up to $200 million in additional share repurchases planned over six months starting May 2026; $800 million remains under the program.