Align Technology’s first quarter results reflected ongoing momentum in its international businesses and steady execution of cost-efficiency measures. Management attributed the strong performance to double-digit volume growth in Europe, Asia Pacific, and Latin America, while North America remained stable but lagged in comparison. CEO Joe Hogan highlighted that the Clear Aligner segment benefited from increased adoption across age groups, particularly teens and kids, and that initiatives to improve affordability and patient conversion, such as the doctor subscription program and expanded financing options, continued to gain traction. The company also cited operational efficiencies and broader use of digital workflows as contributors to improved margins.
Is now the time to buy ALGN? Find out in our full research report (it’s free for active Edge members).
Align Technology (ALGN) Q1 CY2026 Highlights:
- Revenue: $1.04 billion vs analyst estimates of $1.02 billion (6.2% year-on-year growth, 1.8% beat)
- Adjusted EPS: $2.58 vs analyst estimates of $2.29 (12.8% beat)
- Adjusted EBITDA: $223.8 million vs analyst estimates of $242 million (21.5% margin, 7.5% miss)
- Revenue Guidance for Q2 CY2026 is $1.05 billion at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 13.6%, in line with the same quarter last year
- Sales Volumes were up 6.7% year on year
- Market Capitalization: $12.08 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Align Technology’s Q1 Earnings Call
- Daniel Grosslight (Citi): Asked about profitability cadence and the impact of Middle East conflict on guidance; CFO John Morici emphasized ongoing productivity gains and prudent assumptions, noting the impact so far has been minimal.
- Glen Santangelo (Barclays): Inquired about Middle East exposure and share repurchase timing; Morici clarified the region contributes single-digit revenue percentages and that cash constraints guide disciplined buyback pacing.
- Jeffrey Johnson (Baird): Pressed on North American growth versus international trends; CEO Joe Hogan attributed the gap primarily to U.S. macroeconomic conditions rather than increased competition.
- Jason Bednar (Piper Sandler): Queried differences in U.S. retail and DSO channels; Hogan explained DSOs show stronger growth due to operational scale and financing capabilities, while retail adoption lags.
- Elizabeth Anderson (Evercore ISI): Sought detail on ASP dynamics and margin opportunities; Morici pointed to favorable product and country mix, strong gross margin from Zero AA, and ongoing cost actions as margin drivers.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will track (1) adoption rates of new product configurations like Zero AA and their influence on gross margin, (2) further international expansion and localized strategy execution, and (3) the impact of patient financing and doctor engagement programs on case volume growth. We will also monitor how ongoing geopolitical and inflationary challenges affect demand and profitability.
Align Technology currently trades at $170.55, down from $178.40 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.