Align Technology 2026 Q2: Revenue of $1.056 Billion, Up 4.33% Year-over-Year, Net Profit Down 13.09% Year-over-Year

Source: Align Technology Q2 2026 Financial Results

DentalGoodNews｜July 29, 2026 - Invisalign® parent company Align Technology, Inc. (Align Technology) released its financial results for the second quarter of 2026 (ended June 30, 2026). The report shows that Align Technology's Q2 single-quarter revenue reached $1.056 billion, a year-over-year increase of 4.33%; net income was $108 million, a year-over-year decrease of 13.09%.

In the first half of 2026, Align Technology achieved total revenue of $2.096 billion, a year-over-year increase of 5.25%; net income was $221 million, a year-over-year increase of 1.48%. Q2 single-quarter operating profit was impacted by a provision for UK VAT tax liabilities (approximately $37.5 million), resulting in a decline; the Non-GAAP operating profit margin reached 22.9%, exceeding the company's previous expectations.

Source: Align Technology Q2 2026 Financial Results

By business segment, the Clear Aligner business generated Q2 revenue of $871 million, a year-over-year increase of 8.24%, making it the company's highest revenue-contributing segment. Global clear aligner shipments in the quarter reached 691,800 cases, a year-over-year increase of 7.36%, setting a record for Q2 single-quarter shipments. Among these, international markets, including the Asia-Pacific (APAC) region, Europe, the Middle East and Africa (EMEA), and Latin America, all achieved double-digit growth; the North American market remained stable. Align Technology stated that Q2 clear aligner growth came from orthodontist and general dentist channels, as well as growth in adult, adolescent, and child patient groups; the DSO channel continued to achieve double-digit growth.

The Imaging Systems and CAD/CAM Services business generated Q2 revenue of $185 million, a year-over-year decrease of 10.82%. The company indicated that the decline in this business primarily reflects weakness in the capital equipment market and a shift in customer demand towards lower-priced scanners and flexible acquisition models such as leasing/subscriptions. While these models generate lower upfront revenue recognition, the company believes they help expand the installed base of digital scanning technology.

Source: Align Technology Q2 2026 Financial Results

Additionally, Align Technology recorded a loss related to UK VAT legal and contingency matters in the quarter. According to a previous report by DENTALGOODNEWS (Leading Dental Industry Media, DGN), the UK High Court overturned a previous tax exemption ruling on July 7, 2026, determining that clear aligners do not qualify as "dental prostheses" exempt from VAT. As a result, the company recorded an estimated liability of approximately $37.5 million (including interest) in the quarter, which was included in the "Legal settlements and contingencies" item, depressing the quarter's operating profit. Excluding the UK VAT liability and other Non-GAAP adjustment items, the company's Q2 single-quarter Non-GAAP operating profit margin was 22.9%, an increase of 1.6 percentage points year-over-year; the Non-GAAP gross margin was 72.3%, an increase of 1.8 percentage points year-over-year.

In terms of operational efficiency, Align Technology's Q2 GAAP gross margin was 71.7%, higher than 69.9% in the same period last year, an increase of 1.8 percentage points year-over-year. The GAAP operating profit margin was 14.6%, lower than 16.1% in the same period last year, primarily due to the drag from the aforementioned tax liability provision. During the quarter, the company spent approximately $67 million to repurchase about 400,000 shares of common stock. As of June 30, 2026, the company held total cash and cash equivalents of $1.103 billion.

Source: Align Technology Q2 2026 Financial Results

Regarding the business outlook, Align Technology expects Q3 revenue for fiscal year 2026 to be in the range of $1.00 billion to $1.02 billion, with a sequential decline due to seasonal factors and foreign exchange fluctuations; Q3 GAAP gross margin is expected to be approximately 67.5% to 68.5% (including approximately $20 million to $30 million in one-time accelerated depreciation and restructuring costs), with a Non-GAAP gross margin of approximately 71.0%; Q3 GAAP operating profit margin is expected to be approximately 13.5% to 15.0% (including approximately $35 million to $50 million in one-time costs), with a Non-GAAP operating profit margin of approximately 24.0%.

For the full fiscal year 2026, the company maintains its guidance of 3% to 4% year-over-year revenue growth; revenue from the Imaging Systems and CAD/CAM Services (Systems & Services) business is expected to decline 6% to 8% year-over-year, primarily due to lower scanner prices and an increased share of leasing models; the full-year GAAP gross margin is expected to be approximately 70.2% to 70.5%; the Non-GAAP gross margin is expected to be approximately 71.7%, an improvement of approximately 100 basis points year-over-year; the full-year GAAP operating profit margin is expected to be approximately 15.1% to 15.6%, and the Non-GAAP operating profit margin is expected to be approximately 23.7%, an improvement of approximately 100 basis points compared to 2025.