Topline Growth
Total Q1 revenue of $1.041 billion, up 6.2% year-over-year (constant currency benefit ~4.5% / $44.9M), driven primarily by Clear Aligner demand.
Align Tech
· ALGN
April 29th, 2026
Summary
- Earnings Call Date:
- 2026-04-29
- Change Since:
- -4.20%
- Next Earnings Date:
- 2026-07-29
Earnings Call Sentiment
PositiveThe call communicated strong operational and financial performance: record Clear Aligner volumes, broad international growth, margin expansion, EPS and cash generation, and traction for commercial and product initiatives (DSP, financing, iTero/exocad integration). Management reiterated full-year guidance while taking a prudent stance given geopolitical uncertainty and flagged near-term risks (North America softness, Systems & Services seasonality, higher OpEx and resin/freight exposure). On balance the positives — robust volume growth, improving margins, product/platform momentum and capital returns — outweigh the challenges, though the company remains cautious on macro risks.
Company Guidance
Align guided Q2 2026 revenue of $1.040–$1.060 billion (≈+3%–5% YoY), with Clear Aligner volumes expected to be up sequentially and year‑over‑year, Clear Aligner ASPs flat sequentially and YoY, and Systems & Services revenue up sequentially, while assuming some Q2 impact from the Middle East. For fiscal 2026 they reaffirmed full‑year revenue growth of +3%–4% YoY, Clear Aligner volume growth of mid‑single digits, an expected full‑year ASP decline of ~1%–2% YoY, GAAP operating‑margin targets cited as ~16.4% in one comment and a full‑year objective slightly below 18% (≈+400 bps vs. 2025), non‑GAAP operating‑margin references of ~21.5% and a reaffirmed full‑year target of ~23.7% (+100 bps YoY), an FX benefit trending toward ~100 basis points for the year, capital expenditures of $125–$150 million, and a planned additional share repurchase of up to $200 million over six months beginning May 1.
Record Clear Aligner Volume and ASP Expansion
Clear Aligner shipments reached a record 686,000 cases, up 6.7% year-over-year (1.3% sequentially). Clear Aligner revenue was $856M, up 7.4% YoY. Average selling price per case was $1,250, up 1% ($10) YoY.
Broad-Based Patient and Channel Growth
Adults treated totaled 449,000 (up 7.8% YoY); teens & kids started 237,000 (up 4.8% YoY). Shipments grew double-digits in EMEA, APAC and Latin America; dentist/orthodontist channels both expanded (orthodontist shipments +7.4% YoY; GP shipments +5.6% YoY). DSO volumes grew double-digits and comprised ~25% of global volumes.
Margin and Profitability Improvement
GAAP gross margin improved to 70.8% (+1.4 pts YoY); Clear Aligner gross margin 71.6% (+1.1 pts YoY). GAAP operating margin was 13.6% (+0.3 pts YoY); non-GAAP operating margin expanded to 21.5% (+2.5 pts YoY). Non-GAAP EPS was $2.58, up 21% YoY.
Cash Generation, Deleveraging and Capital Returns
Cash & cash equivalents of $1,059.8M (up $186.8M YoY). Q1 operating cash flow $151M and free cash flow $120.3M. Completed $200M buyback and announced up to an additional $200M repurchase over 6 months; $800M remains available under authorization.
Systems & Platform Adoption Milestones
Installed base of active iTero scanners exceeded 125,000 globally and >12M iTero scans performed in the quarter. Exocad delivered double-digit revenue growth; Invisalign ART pilot launched in U.S.; iTero Lumina adoption and service/CPO sales contributed to Systems & Services revenue of $184.1M.
Commercial Initiatives Gaining Traction
Doctor Subscription Program (DSP) and DSP touch-up cases grew double-digits YoY across regions. Patient financing (HFD) live in over 4,000 U.S. offices and Invisalign Pay now used in a majority of Invisalign cases in Brazil—both supporting affordability, conversion and adoption.
Operational Improvements and Revenue Recognition Benefits
Clear Aligner deferred revenue decreased $77.2M (6.4% YoY) reflecting rollout of configurations with fewer/no future obligations (improves revenue recognition timing and cash conversion). Company cited lower refinement rates, improved treatment predictability and manufacturing throughput as ongoing margin drivers.
Operator
Greetings. Welcome to the Align First Quarter 2026 Earnings Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Shirley Stacy, with Align Technology. You may begin.
Shirley Stacy
Good afternoon, and thank you for joining us. I'm Shirley Stacy, Vice President of Corporate Communications and Investor Relations. Joining me for today's conference call is Joe Hogan, President and CEO; and John Morici, CFO. We issued first quarter 2026 financial results today via Business Wire, which is available on our website at investor.aligntech.com. Today's conference call is being audio webcast and will be archived on our website for approximately 1 month. As a reminder, the information provided and discussed today will include forward-looking statements, including statements about Align's future events, product outlook and financial expectations. These forward-looking statements are only predictions and involve risks and uncertainties that described in more detail in our more recent periodic reports filed with the Securities and Exchange Commission available on our website and at sec.gov. Actual results may vary significantly, and Align expressly assumes no obligation to update any forward-looking statement.
We have posted historical financial statements with corresponding reconciliations, including our GAAP to non-GAAP reconciliation, if applicable, and our first quarter 2026 conference call slides on our website under Quarterly Results. Please refer to these files for more detailed information. With that, I'll turn the call ov...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free