Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Align Technology delivered solid Q1 FY2026 results with revenue of $1.04B (+6.2% YoY), net income surging 21.0% to $112.8M, and operating cash flow nearly tripling to $151.0M, reflecting improved profitability and a strengthened balance sheet.
Revenue
$1.04B
+6.21% YoY
EPS (Diluted)
$1.57
+23.62% YoY
Gross Margin
70.8%
+1.4 pts YoY
Operating Income
$141.96M
+8.28% YoY
Source: SEC XBRL
Align Technology (ALGN) reported Q1 FY2026 revenue of $1.04B, up 6.2% year over year. Operating margin was 13.6%, up 0.2 points from 13.4% a year earlier. Operating cash flow was $151.04M, up 186.7% year over year. ALGN's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.64 | 2.66 | Miss -0.9% |
| Mar 2026This filing | 2.58 | 2.33 | Beat +11.0% |
| Dec 2025 | 3.29 | 3.03 | Beat +8.5% |
| Sep 2025 | 2.61 | 2.45 | Beat +6.5% |
Adjusted (non-GAAP) EPS of $2.58 versus the $2.33 analyst consensus — a +11.0% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.57.
Compiled by AI from this SEC filing
Total revenue reached $1.04B in Q1 FY2026, up 6.2% YoY from $979.3M, indicating continued demand for Align's clear aligner and imaging systems products despite a challenging macro environment.
Source: 10-Q Financial Data, Income Statement
Gross margin improved to 70.8% from 69.5% in the prior-year period (+1.4 percentage points), suggesting favorable product mix, pricing discipline, or cost efficiencies in manufacturing and delivery.
Source: 10-Q Financial Data, Key Ratios
Operating income grew 8.3% YoY to $142.0M while SG&A rose only 4.0% and R&D increased just 1.5%, showing that revenue growth is outpacing expense growth and driving operating leverage.
Source: 10-Q Financial Data, Income Statement
Net income jumped 21.0% YoY to $112.8M, with diluted EPS rising 23.6% to $1.57, significantly outpacing revenue growth and reflecting both operational improvement and potentially favorable below-the-line items such as tax or interest.
Source: 10-Q Financial Data, Income Statement
Operating cash flow surged 186.7% YoY to $151.0M, cash and equivalents grew 21.4% to $1.06B, and total liabilities declined 6.2% YoY, collectively pointing to a meaningfully healthier financial position entering the rest of FY2026.
Source: 10-Q Financial Data, Cash Flow & Balance Sheet
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
SG&A expenses of $465.3M represent approximately 44.7% of revenue and are more than three times operating income of $142.0M. Any slowdown in revenue growth without a corresponding reduction in selling and administrative costs could rapidly compress operating margins.
Source: 10-Q Financial Data, Income Statement
Investing cash flow deteriorated sharply to -$131.6M from -$25.3M in Q1 FY2025, a 420% increase in outflows. If these investments do not generate expected returns, capital allocation efficiency could suffer and free cash flow could be pressured.
Source: 10-Q Financial Data, Cash Flow
With cost of revenue growing only 1.5% against 6.2% revenue growth, margin expansion appears partly volume-driven. A deceleration in case volume or pricing pressure from competitors could reverse gross margin gains quickly.
Source: 10-Q Financial Data, Income Statement & Key Ratios
ROE of 2.72% and ROA of 1.79% for the quarter are modest, suggesting the company's large asset base and equity base are not yet generating high returns. This may reflect ongoing investments or underutilization of assets.
Source: 10-Q Financial Data, Key Ratios
Share repurchases fell 84.5% YoY to just $31.2M from $201.1M, meaning EPS growth is now primarily driven by earnings improvement rather than share count reduction. If earnings growth moderates, EPS growth could slow materially.
Source: 10-Q Financial Data, Cash Flow
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.04 $B | 0.98 $B | +6.21% |
Cost of Revenue $M | 303.50 $M | 299.15 $M | +1.45% |
Gross Profit $M | 736.59 $M | 680.11 $M | +8.30% |
Operating Income $M | 141.96 $M | 131.10 $M | +8.28% |
Net Income $M | 112.77 $M | 93.23 $M | +20.96% |
EPS (Basic) $ | 1.58 $ | 1.27 $ | +24.41% |
EPS (Diluted) $ | 1.57 $ | 1.27 $ | +23.62% |
R&D Expense $M | 98.66 $M | 97.20 $M | +1.50% |
SG&A Expense $M | 465.34 $M | 447.63 $M | +3.96% |
Answers draw on this SEC filing and the data on this page
Align Technology's Q2 FY2026 revenue grew 4.3% on strong Clear Aligner demand, but a $38.7 million legal contingency and higher costs pushed net income down 13.1%.
Align Technology (ALGN) posted modest FY2025 revenue growth of +0.9% to $4.03B, but profitability deteriorated across the board as cost of revenue surged 10.3%, compressing gross margin by ~280 bps to 67.2% and driving operating income down 10.2% to $546M.
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