Align Technology, Inc. ALGN is set to release second-quarter 2026 results on July 29, after the closing bell.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.58, which surpassed the Zacks Consensus Estimate by 14.16%. Align Technology beat on earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 7.80%.
ALGN’s Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $1.05 billion, which suggests 3.9% growth from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pinned at $2.56 per share, which implies a 2.8% rise from the year-ago recorded actuals.
Estimate Revision Trend Ahead of ALGN’s Q2 Earnings
Estimates for second-quarter earnings have remained unchanged at $2.56 per share in the past 30 days.
Here’s a brief overview of the company’s performance leading up to this announcement.
Factors Shaping ALGN’s Q2 Performance
Clear Aligner
The segment is likely to have benefited from higher Clear Aligner volumes, with particular strength across the EMEA, APAC and Latin America, with continued stability in North America. Both orthodontists and GP dentist channels may have seen volume growth, driven by growth across adults, teens and growing kids. From a product standpoint, it is likely to have seen strong contributions from Invisalign First and the Invisalign Palatal Expander with Mandibular Advancement with Occlusal Blocks.
Dental and orthodontic service organizations (DSOs) must have remained a key, scalable growth channel in the to-be-reported quarter, with continued strong progress across all major regions. Meanwhile, the doctor subscription program (DSP), which includes retention, touch-up and relapse cases, is expected to have maintained strong momentum during the quarter.
The Zacks Consensus Estimate for Clear Aligner revenues indicates 6.3% year-over-year growth.
Align Technology, Inc. Price and EPS Surprise
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
Imaging Systems & CAD/CAM Services (Systems and Services)
Within this segment, revenues are likely to have benefited from higher volumes across all regions and continued adoption of iTero Lumina scanner. In the first quarter, the total installed base of active scanners exceeded 125,000 globally. We expect this trend to have continued in the to-be-reported quarter as well.
exocad achieved strong revenue growth, reinforcing the company’s strategy to integrate orthodontics and restorative dentistry within a customer and patient-centric digital platform. We expect this trend to have persisted in the second quarter as well. Following the successful launch of Invisalign Advanced Restorative Treatment (ART) pilot in the EMEA, Align recently began an Invisalign ART pilot in the United States with labs and doctors beginning training in several markets. We expect the development to have contributed to the company’s top-line growth.
The company’s growing suite of digital diagnostic tools, including Align Oral Health Suite and Align X-ray Insights, helps doctors identify conditions earlier and deliver clearer, more informed treatment recommendations. We expect all these tools to have positively impacted Align Technology’s revenues in the second quarter.
The Zacks Consensus Estimate for the segment’s revenues implies a decrease of 5.5% on a year-over-year basis.
What Our Quantitative Model Predicts for ALGN
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, this is not the case here, as you can see below:
Earnings ESP: Align Technology has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:
Hinge Health Inc. HNGE has an Earnings ESP of +4.24% and a Zacks Rank #1. The company is expected to release second-quarter 2026 results soon.
In the trailing four quarters, HINGE delivered an average surprise of 179.54%. The Zacks Consensus Estimate for second-quarter EPS implies a decrease of 11.9% from the year-ago quarter’s figure.
Neurocrine Biosciences NBIX has an Earnings ESP of +40.60% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.
NBIX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.08%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for an increase of 112.3% from the year-ago quarter’s figure.
West Pharmaceutical Services WST has an Earnings ESP of +1.09% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2026 results on July 23.
WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.37%. The Zacks Consensus Estimate for WST’s second-quarter EPS implies a rise of 13% from the year-ago reported figure.
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Align Technology, Inc. (ALGN): Free Stock Analysis Report
Neurocrine Biosciences, Inc. (NBIX): Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report
Hinge Health Inc. (HNGE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).