Align Technology, Inc. (NASDAQ: ALGN) demonstrated significant progress in its Invisalign segment in the fourth quarter, achieving record-breaking case submission volumes and beating analyst revenue forecasts. This strong performance underscores persistent demand across global markets and reinforces confidence in the company's operational fundamentals heading into 2026.
The company's revenue for the quarter increased by 5.3% year-over-year to $1.048 billion, surpassing consensus estimates of $1.033 billion. Foreign exchange factors contributed approximately $14.8 million to this revenue figure. This performance was bolstered by increasing sales of iTero Lumina scanners, which accounted for roughly 86% of full system units sold during the period.
A pivotal driver of growth was the record 87,700 healthcare practitioners worldwide submitting Invisalign treatment cases during the quarter—the highest recorded fourth-quarter total in the company's history. In particular, orthodontists contributed notably to this surge, enhancing procedural volume and market penetration.
Gross profit, adjusted for notable items, stood at $754.7 million, with the gross margin reaching 72.0%. Operating income was reported at $155.3 million, encapsulating an operating margin of 14.8%. The adjusted earnings per share came in at $3.29, exceeding the consensus estimate of $2.97.
Concerning liquidity, Align Technology maintained strong cash reserves, reporting $1.09 billion in cash and equivalents as of December 31. During the quarter, the company repurchased 700,000 shares at an average cost of $142.87 per share under its ongoing $200 million share repurchase program initiated in August 2025. As of year-end, $831.2 million remained available within the broader $1 billion stock buyback scheme announced in April 2025.
Analysis of business segments revealed that Clear Aligner revenue increased 5.5% year-over-year, totaling $838.1 million. Volume in this segment rose by 7.7% to 676,900 cases, driven primarily by expanding demand in Europe, the Middle East, Africa (EMEA), Latin America, and Asia-Pacific (APAC) regions. Meanwhile, revenues in the Imaging Systems and CAD/CAM Services segment grew 4.2% year-over-year to $209.4 million, benefiting from a 1.2% positive impact from foreign exchange.
Financial leadership expressed satisfaction with the quarter's outcomes. John Morici, Chief Financial Officer, emphasized the company's strong finish to 2025, highlighting results that exceeded market anticipation and underscored durable business fundamentals. He noted the continued advancement in strategic priorities such as fostering international adoption, expanding orthodontic treatment among younger demographics, enhancing general practitioner engagement, and optimizing consumer demand conversion through localized marketing activities.
Looking ahead to the first quarter, Align Technology forecasts revenues between $1.010 billion and $1.030 billion, representing a 3% to 5% increase year-over-year. This guidance stands in line with the consensus revenue estimate of $1.022 billion. The Clear Aligner segment's volume is expected to maintain mid-single-digit growth, while the Systems and Services revenue may decline sequentially, consistent with typical first-quarter seasonality trends. Adjusted operating margin for the quarter is projected around 19.5%.
For the full fiscal year 2026, the company anticipates revenue growth of 3% to 4%, with continued mid-single-digit percentage increases in Clear Aligner volumes. An adjusted operating margin of approximately 23.7% is projected, marking a 100 basis point improvement over the prior year. Capital expenditures are expected to range between $125 million and $150 million.
While acknowledging the ongoing fluidity of macroeconomic conditions, Align Technology remains cautiously optimistic about prospects for growth throughout 2026 and beyond, underpinned by disciplined execution and favorable momentum across its markets and customer segments.
Following the earnings release, Align Technology shares showed strong market response, trading up over 10% in premarket activity at $178.13.