Dental device maker Align Technology's Q2 revenue slightly beats estimates

Overview

• US dental device maker's Q2 revenue rose 4.3% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company repurchased $67 mln in shares during the quarter

Outlook

• Align expects Q3 revenue between $1.0 bln and $1.02 bln, down sequentially

• Company maintains 2026 revenue growth guidance of up 3% to 4% year-over-year

• Align expects Q3 gross margin to fall due to $20-$30 mln in one-time charges

Result Drivers

• CLEAR ALIGNER GROWTH - Record Clear Aligner revenue and shipments, led by double-digit international growth and stable North America performance, drove overall revenue increase

• SYSTEMS SERVICES DECLINE - Revenue from Imaging Systems and CAD/CAM Services fell 10.8% yr/yr due to softness in the capital equipment market and a shift toward lower-priced scanners and flexible acquisition models

• FOREIGN EXCHANGE IMPACT - Foreign exchange provided a year-over-year benefit to revenue but was a sequential headwind and negatively affected margins and EPS

Company press release: ID:nBw36ZM2Wa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies distribution peer group is "buy"

• Wall Street's median 12-month price target for Align Technology Inc is $214.00, about 21.9% above its July 28 closing price of $175.60

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• July 29 - Align Technology to overhaul board following engagement with Elliott

• July 29 - Conmed Q2 sales, adjusted profit beat on organinc platform growth

• July 29 - Glaukos Q2 sales jump 50%; raises net sales forecast

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)