Align Technology, Inc.

Second-quarter 2026 revenue was $1,056.2 million, up 4.3% year over year, with Clear Aligner revenue of $870.9 million, up 8.2%, and Systems and Services revenue of $185.3 million, down 10.8%. Clear Aligner volume was a record 692,000 cases, up 7.4%, and Clear Aligner ASP was $1,260, up 0.8% year over year. GAAP gross margin was 71.7%, up 1.8 points; non-GAAP gross margin was 72.3%, also up 1.8 points. GAAP EPS was $1.51, down $0.20 year over year, and non-GAAP EPS was $2.64, up 6%. Full-year 2026 guidance calls for revenue growth of 3% to 4%, Clear Aligner volume growth of about 6%, Clear Aligner ASP flat to slightly down, Systems and Services revenue down 6% to 8%, GAAP gross margin of 70.2% to 70.5%, non-GAAP gross margin up about 100 basis points year over year, GAAP operating margin of 15.1% to 15.6%, and non-GAAP operating margin of about 23%. Q3 guidance calls for revenue of $1.0 billion to $1.020 billion, GAAP gross margin of 67.5% to 68.5%, and non-GAAP operating margin of about 24%.

Joe Hogan framed the quarter as solid execution in a volatile environment, emphasizing broad-based Clear Aligner growth, strong international momentum, and continued traction from financing, clinical support, subscription, and practice productivity programs. He said North America was stable overall, with DSOs helping offset softer retail demand, and repeatedly stressed that the company is not counting on macro improvement to drive results. Hogan also highlighted the strategic initiatives tied to Elliott, including board refreshment, an operating model review, and a higher buyback commitment, presenting them as aligned with the company’s existing growth and profitability agenda.

John Morici focused on the mix of revenue and margin drivers. He said Clear Aligner revenue benefited from higher volume, price increases, lower deferrals, and FX, while Systems and Services was pressured by lower scanner ASPs and a shift to leases, rentals, and certified preowned systems. He noted gross margin expansion was driven mainly by operational efficiencies, tariff refund, and higher Clear Aligner ASPs, with non-GAAP operating margin at 22.9% and cash and equivalents at $1,102.6 million, up $201.4 million year over year. He also cited $192.8 million of operating cash flow, $35.7 million of capex, $157.1 million of free cash flow, $67 million of share repurchases in Q2, and a new 2026 repurchase target of $400 million to $500 million.

Analysts pressed on whether North American consumer softness was improving, but management said the region was mostly stable and that guidance does not assume a macro recovery. Several questions focused on why Systems and Services outlook weakened; management pointed to deliberate mix shift toward lower-priced scanners and leasing/rental models, plus weaker capital spending, and said the tradeoff should build recurring revenue over time. Analysts also asked about ASPs, competition in scanners, and the U.K. VAT ruling; management said ASPs were affected mainly by seasonal mix and lower-priced product rollouts, competition had not meaningfully intensified, and the U.K. VAT would be passed through to customers rather than absorbed in list pricing.