Align Technology, Inc.’s (NASDAQ:ALGN) Invisalign business hit record highs in the fourth quarter, with a historic surge in case submissions underscoring resilient global demand and helping drive a stronger-than-expected earnings report that sent the stock sharply higher on Thursday.
Earnings Snapshot
Revenues rose 5.3% year-over-year (Y/Y) to $1.048 billion, beating the consensus of $1.033 billion, with foreign exchange (FX) boosting revenue by around $14.8 million.
This was aided by higher volumes on continued iTero Lumina scanner sales, representing around 86% of the full systems units.
In the quarter, the company witnessed a record 87.7 thousand doctors worldwide submit Invisalign cases, the highest fourth-quarter total ever, aided mainly by a record number of Orthodontists submitters.
Adjusted gross profit stood at $754.7 million, with a gross margin of 72.0%. Operating income came in at $155.3 million, with an operating margin of 14.8%.
Adjusted EPS of $3.29 surpassed the consensus of $2.97.
As of December 31, the company had cash and cash equivalents of $1.09 billion.
In the quarter, the company repurchased around 0.7 million shares at an average price of $142.87 under the $200 million open market repurchase plan announced in August 2025, completed in January 2026.
As of December 31, 2025, the company had $831.2 million available under the $1.0 billion stock repurchase program launched in April 2025.
Segment Performance
Clear Aligner revenues increased 5.5% Y/Y to $838.1 million, with volume totaling 676.9 thousand cases, up 7.7% Y/Y, led by strength in the EMEA, Latin America, and APAC regions.
Also, Imaging Systems and CAD/CAM Services revenues grew 4.2% Y/Y to $209.4 million, with FX impacts of +1.2%.
Align Technology CFO John Morici said the company ended 2025 on a strong note, with fourth-quarter results beating expectations and highlighting resilient business fundamentals.
Outlook
For the first quarter, the company expects revenues of $1.010 billion-$1.030 billion, representing a 3%–5% increase Y/Y, versus consensus of $1.022 billion.
Align technology projects Clear Aligner segment volume to grow in mid-single digits Y/Y, while Systems & Services revenue to decline sequentially, reflecting typical first quarter seasonality.
The company anticipates the adjusted operating margin to be around 19.5% in the quarter.
For fiscal 2026, the company projects revenue growth of 3%–4% Y/Y, with Clear Aligner volume expected to increase mid-single digits.
Align Technology sees an adjusted operating margin of about 23.7%, up 100 basis points Y/Y, and capital expenditures of $125 million–$150 million for fiscal 2026.
Heading into 2026, Morici said Align is executing with discipline and seeing encouraging momentum across regions and customer segments, supported by priorities such as expanding international adoption, boosting orthodontic use among teens and children, deepening general practitioner engagement, and improving consumer demand conversion through localized marketing.
While acknowledging a fluid macro environment, Morici said the company remains cautiously optimistic and well-positioned for growth in 2026 and beyond.
ALGN Price Action: Align Technology shares were up 10.43% at $178.13 during premarket trading on Thursday, according to Benzinga Pro data.
