Align Technology (NASDAQ: ALGN) reported Q1 EPS of $2.58, $0.28 better than the analyst estimate of $2.30. Revenue for the quarter came in at $1.04 billion versus the consensus estimate of $1.02 billion.

Fiscal 2026 Business Outlook

With Q1’26 results as a backdrop, we remain focused on executing our strategic growth initiatives and building on the recent quarterly results. At the same time, there is uncertainty and the potential for adverse impacts on patient traffic, consumer demand and shipping/freight resulting from the ongoing military action in the Middle East.
With respect to the Middle East, we continue to monitor developments closely. While our doctor customers in MEA have noted some impact on patient traffic and case conversion, the overall effect on our EMEA results was immaterial in the first quarter. Given the ongoing uncertainty, we have taken a prudent approach in our second‑quarter outlook by assuming some impact on both clear aligner and scanner demand. Beyond the second quarter, it becomes increasingly difficult to predict how the conflict in the Middle East will affect our business, particularly in the event of further escalation, sustained constraints on oil and gas supplies, or broader softening in consumer and patient sentiment.
As we look to Q2 and the remainder of 2026, assuming no circumstances occur beyond our control such as: additional ramifications as a result of the aforementioned military action in the Middle East beyond what we have already assumed, adverse foreign exchange fluctuation, changes to currently applicable duties, including tariffs or other fees that could impact our business, our outlook is as follows:

Q2\'26:

We expect Q2’26 worldwide revenues to be in the range of $1,040M to $1,060M, up approximately 3% to 5% year-over-year
We expect Q2’26 Clear Aligner volume to be up sequentially and year-over-year, and Clear Aligner Average Selling Price (“ASP”) to be flat sequentially and year-over-year
We expect Systems and Services revenues to be up sequentially
We expect our Q2’26 GAAP operating margin to be approximately 16.4% and non-GAAP operating margin to be approximately 21.5%

For fiscal 2026:

For fiscal 2026 we remain confident in the outlook that we provided previously and reaffirm our full year fiscal 2026 guidance as follows:

We expect 2026 worldwide revenue growth to be up 3% to 4% year-over-year
Our full year 2026 revenue guidance continues to assume a benefit from foreign exchange that is consistent with the assumptions underlying our initial full year outlook. We expect the impact of foreign exchange to moderate in the remaining quarters, trending toward the full year assumption of approximately 100 basis points
We expect 2026 Clear Aligner volume growth to be up mid-single digits year-over-year
We expect 2026 GAAP operating margin to be slightly below 18.0%, an approximately 400 basis points improvement over 2025 and non-GAAP operating margin to be approximately 23.7%, a 100 basis points improvement year-over-year consistent with our previous guidance
We expect our investments in capital expenditures for fiscal 2026 to be $125 million to $150 million. Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity as well as maintenance
We expect to repurchase up to $200.0 million of our common stock over a six-month period beginning on or about May 1, 2026

For earnings history and earnings-related data on Align Technology (ALGN) click here.