Align Technology Inc

Align Technology reported second-quarter revenue of $1.06 billion, meeting Wall Street expectations with 4.3% year-on-year growth, while adjusted earnings per share of $2.64 beat estimates by 1.7%. Clear Aligner volumes rose 7.4% year on year, driven by double-digit growth in APAC, EMEA, and Latin America, though North American performance was stable. The company's Systems and Services segment faced headwinds from a deliberate shift toward lower-priced scanners and flexible acquisition models, which pressured margins and contributed to an operating margin decline to 14.6% from 16.1% a year earlier. For the third quarter, Align guided for revenue of $1.01 billion at the midpoint, below analyst estimates of $1.02 billion, as CFO John Morici cautioned that the scanner business transition will continue to weigh on reported revenue and profitability in the near term. The company also announced a strategic and operating model review following discussions with Elliott Management, alongside the addition of three new independent directors.

Align Technology has responded to the European Commission's formal antitrust investigation into whether it illegally tied its iTero intra-oral scanners to Invisalign clear aligners. The probe, opened on June 30, 2026, follows a competitor complaint and focuses on two practices since 2017: refusing to approve competing scanners for automated digital scan submissions for Invisalign orders, and rejecting scans from other intra-oral scanners even when based on industry-standard files. Align called the investigation purely procedural, emphasized that iTero can be used with aligners other than Invisalign, and pledged full cooperation with the Commission. Shares closed Tuesday at $168.66, down 2.75%, and edged lower in pre-market trading.

The four dental equipment and technology stocks tracked by StockStory reported strong first-quarter results, with aggregate revenues beating analysts' consensus estimates by 3% while next-quarter revenue guidance was in line. Dentsply Sirona posted flat revenue of $880 million, exceeding expectations by 4.8%, but its stock fell 10% since reporting. Envista delivered the fastest revenue growth among its peers at 14.4% to $705.5 million, yet shares declined 6.7%. Henry Schein, the weakest performer against estimates, saw revenue rise 6.3% to $3.37 billion and its stock gained 11.2%. Align Technology reported a 6.2% revenue increase to $1.04 billion, beating estimates, but its stock dropped 6.3%. On average, share prices across the group are down 2.9% since the latest earnings results.