Align Technology, Inc. (ALGN) had a very good Thursday. The maker of Invisalign clear aligners reported fourth-quarter earnings that crushed expectations, with its core business hitting record volumes that suggest the global appetite for transparent orthodontics remains surprisingly robust despite macro headwinds.

The Numbers That Matter

Revenue climbed 5.3% year-over-year to $1.048 billion, topping the Street's $1.033 billion estimate. Foreign exchange tailwinds added about $14.8 million to that total, but the real story was volume. Clear Aligner revenues jumped 5.5% to $838.1 million, driven by 676,900 cases—up 7.7% from the prior year. Strength came from EMEA, Latin America, and APAC regions, showing this isn't just a U.S. phenomenon.

The headline-grabber? A record 87,700 doctors worldwide submitted Invisalign cases during the quarter, marking the highest fourth-quarter total ever. That surge was powered mainly by orthodontists, which makes sense given they're the natural audience for this product.

Meanwhile, the Imaging Systems and CAD/CAM Services segment grew 4.2% to $209.4 million. The company's iTero Lumina scanner continues gaining traction, representing roughly 86% of full system units sold. Higher scanner volumes are a positive signal—they create a stickier customer base and drive recurring revenue.

On the bottom line, adjusted earnings per share hit $3.29, handily beating the consensus of $2.97. Adjusted gross margin came in at 72%, while operating income reached $155.3 million with a 14.8% margin. The company closed the quarter with $1.09 billion in cash and equivalents.

Capital Allocation Moves

Align bought back approximately 700,000 shares at an average price of $142.87 during the quarter, completing a $200 million open market repurchase program that was announced in August 2025 and wrapped up in January 2026. As of December 31, 2025, the company still had $831.2 million available under a separate $1 billion buyback program launched in April 2025.

Looking Ahead

For the first quarter of 2026, management expects revenue between $1.010 billion and $1.030 billion, representing 3% to 5% year-over-year growth. That's roughly in line with the consensus of $1.022 billion. Clear Aligner volume should grow in the mid-single digits, while Systems and Services revenue will likely decline sequentially due to typical first-quarter seasonality. The company anticipates an adjusted operating margin around 19.5% for the quarter.

For the full fiscal year 2026, Align Technology projects revenue growth of 3% to 4% with Clear Aligner volume increasing in the mid-single digits. The company expects its adjusted operating margin to expand by 100 basis points year-over-year to about 23.7%, while capital expenditures should land between $125 million and $150 million.

CFO John Morici said the company ended 2025 on a strong note, with fourth-quarter results exceeding expectations and demonstrating resilient business fundamentals. He noted that Align is executing with discipline heading into 2026, with encouraging momentum across regions and customer segments. The company's priorities include expanding international adoption, boosting orthodontic use among teens and children, deepening engagement with general practitioners, and improving consumer demand conversion through localized marketing.

While acknowledging a fluid macroeconomic environment, Morici said the company remains cautiously optimistic and well-positioned for growth in 2026 and beyond.

Price Action: Align Technology shares jumped 10.43% to $178.13 in premarket trading Thursday.