Jul. 29 at 8:49 PM
$ALGN Align Technology sees FY26 revenue growth 3%-4%
The company said, "Our full year 2026 revenue guidance continues to assume a benefit from foreign exchange that is consistent with the assumptions underlying our initial full year outlook. We expect the impact of foreign exchange to moderate in the remaining quarters, trending toward the full-year assumption of approximately 100 basis points. We now expect 2026 Clear Aligner volume growth to be up approximately 6% year-over-year and 2026 Clear Aligner ASP to be flat to slightly down from 2025. We now expect 2026 Systems & Services revenue growth to be down 6% to 8% year-over-year as we anticipate a continued mix shift towards lower-priced scanners and more flexible acquisition models in 2H'26.
We expect our 2026 iTero scanner shipment growth to be up double-digits year-over-year, reflecting continued customer adoption and scanner placements - and helping to underpin our second half outlook for Invisalign volumes. We expect 2026 GAAP Gross Margin to be approximately 70.2% to 70.5%, up year-over-year by approximately 3 points, due to the incurrence of one-time charges expected to be approximately
$30 to
$40 million primarily for accelerated depreciation and restructuring and other charges, partially offset by gain on assets held for sale. We expect 2026 non-GAAP Gross Margin to be up approximately 100 basis points over 2025 non-GAAP Gross Margin.
We expect 2026 GAAP Operating Margin to be approximately 15.1% to 15.6%, up year-over-year by approximately 2 points, due to the incurrence of one-time charges expected to be approximately
$90 to
$110 million, primarily related to restructuring and other charges, accelerated depreciation, and legal settlements, partially offset by gain on assets held for sale. In Q2'26 we recorded
$38 million for clear aligner UK VAT liability. We expect 2026 non-GAAP Operating Margin to be approximately 23.7%, a 100-basis point improvement year-over-year consistent with our previous guidance.
We expect our investments in capital expenditures for fiscal 2026 to be
$125 million to
$150 million. Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity as well as maintenance. We now expect to repurchase
$400 million to
$500 million of our common stock in 2026, reflecting the conviction of the Board and Management in Align's long-term value. This includes approximately
$133 million of our common stock we expect to repurchase through October 2026."
