Align Technology reports Q1 2026 revenue growth despite legal settlements

Align Technology (NASDAQ: ALGN) reported first-quarter 2026 revenue of $1.04 billion, representing a 6.2% year-over-year increase, according to a company press release. The dental technology company shipped a record 685,700 Invisalign clear aligner cases during the quarter, up 6.7% from the prior year.

Clear aligner revenue reached $856.0 million, growing 7.4% year-over-year, while Imaging Systems and CAD/CAM Services revenue totaled $184.1 million, up 0.9% from the same period last year. The company reported gross margins of 70.8% and operating margins of 13.6%.

Net income for the quarter was $112.8 million, or $1.57 per diluted share, compared to $93.2 million, or $1.27 per share, in the first quarter of 2025. On a non-GAAP basis, diluted earnings per share were $2.58, up from $2.13 in the prior year period.

The quarter included $30.6 million in legal settlement charges, which impacted operating expenses. Foreign exchange provided a favorable impact of approximately $44.9 million on revenue compared to the prior year.

Align completed a $200 million stock repurchase program during the quarter and announced plans for an additional $200 million repurchase program beginning in May 2026. The company ended the quarter with $1.06 billion in cash and cash equivalents.

For the second quarter of 2026, Align expects revenue between $1.04 billion and $1.06 billion, representing 3% to 5% year-over-year growth. The company reaffirmed its full-year 2026 guidance, expecting revenue growth of 3% to 4% year-over-year and GAAP operating margins slightly below 18%.

The company noted potential impacts from ongoing military action in the Middle East on patient traffic and demand, which has been factored into its second-quarter outlook.

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