10-Q · May 6, 2026
Align Technology reported a strong Q1 2026, with revenues of $1,040 million and EPS of $2.58, both surpassing analyst expectations. The company continues to capitalize on Clear Aligner sales, supported by a strategic…
Earnings analysis · 10-Q
ALGN earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Align delivered a mixed but operationally improved quarter: Q3 revenue of $1,014.8 million modestly exceeded consensus and Clear Aligner volume grew 6.6% year over year, while operating margin expanded to 16.7% and…
Read full summary
Align delivered a mixed but operationally improved quarter: Q3 revenue of $1,014.8 million modestly exceeded consensus and Clear Aligner volume grew 6.6% year over year, while operating margin expanded to 16.7% and non-GAAP EPS reached $2.80. Sequential revenue declined approximately 4.3%, and FY2026 revenue guidance of $4,110 million-$4,130 million represents 1.9%-2.4% growth, below the prior 3%-4% outlook. The newly disclosed European Commission antitrust investigation, tariff exposure, competition, and international operating risks offset the quarter’s margin and EPS strength.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.8
- Operating margin
- 16.7%
- Segment
- Clear Aligner revenue increased 4.2% year over year and volume increased 6.6% year over year; segment revenue amount was not disclosed in the provided filing text.
- Segment
- Systems and Services segment revenue amount and year-over-year change were not disclosed in the provided filing text.
What stood out
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Revenue beat consensus but softened sequentially
Revenue was $1,014.8 million, up approximately 1.9% from $996 million in Q3 2025 but down approximately 4.3% from $1.06 billion in Q2 2026. Revenue exceeded the $1,002.3 million consensus estimate by approximately 1.2%.
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Clear Aligners drove reported growth
Clear Aligner revenue increased 4.2% year over year and volume increased 6.6% year over year, making Clear Aligners the primary reported growth driver.
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Operating margin expanded materially
GAAP operating margin reached 16.7%, up 700 basis points from 9.7% in Q3 2025 and 210 basis points from 14.6% in Q2 2026.
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EPS substantially exceeded consensus
Non-GAAP diluted EPS was $2.80, up from $0.78 in Q3 2025 and $1.51 in Q2 2026, and exceeded the $2.67 consensus estimate by approximately 4.9%.
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No revolving debt or marketable securities
The company held no outstanding borrowings under its unsecured revolving line of credit as of September 30, 2026 and had no short-term or long-term marketable securities.
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Private investments increased
The carrying value of privately held company investments increased to $324.5 million from $216.3 million at December 31, 2025, primarily due to an additional Heartland investment and an observable-transaction fair-value adjustment.
What to watch
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New European Commission antitrust investigation
The European Commission announced a formal investigation on June 29, 2026 into whether Align’s Invisalign and iTero practices in the European Economic Area infringe EU competition rules. An adverse outcome could result in fines, required business-practice changes, or follow-on litigation.
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Tariff exposure could pressure margins
Section 301 duties were imposed on imports from the top 60 U.S. trade partners on July 24, 2026, without a statutory rate cap or fixed expiration date. Align manufactures clear aligners in Mexico, and tariffs could increase product costs, reduce demand, and pressure gross margin.
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International workforce and geopolitical exposure
The company states that approximately 91% of employees are located internationally, increasing exposure to geopolitical disruption, immigration restrictions, labor issues, and regional operating interruptions.
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Material foreign-exchange sensitivity
An aggregate 10% change in foreign-currency exchange rates relative to the U.S. dollar could materially affect results of operations and financial position, despite the use of short-term forward contracts.
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Competition and pricing pressure
The company identifies increasing competition and pricing pressure in clear aligners and intraoral scanners, including from lower-priced alternatives, direct-to-consumer companies, laboratories, startups, and AI-enabled offerings. DSO and other large-group customers may also negotiate volume discounts that reduce ASPs and gross margins.
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Private investment valuation risk
The carrying value of privately held investments was $324.5 million at September 30, 2026 versus $216.3 million at December 31, 2025. These investments lack readily determinable fair values and could require impairment charges if macroeconomic or company-specific conditions deteriorate.
Management's outlook
Q4 2026 revenue outlook of $1,000 million-$1,020 million was maintained. FY2026 revenue guidance of $4,110 million-$4,130 million implies 1.9%-2.4% growth, down from the prior 3%-4% outlook; FY2026 non-GAAP operating margin remains approximately 23.7%.
Earlier filings 4
10-K · February 27, 2026
Align positions itself as an end-to-end digital dentistry company built around the Align™ Digital Platform (Invisalign clear aligners, iTero scanners, exocad software) and emphasizes scale (over 22 million patients…
10-Q · August 6, 2025
Align reported Q2 net revenues of $1,012,449 (in thousands), down slightly vs. prior-year quarter, while gross margin held near 69.9% and operating margin improved to 16.1%. Income from operations rose to $163,033 (in…
10-K · February 28, 2024
Align Technology, Inc. reported significant growth in its 2023 10-K, with total revenue reaching approximately $3.83 billion, compared to $3.54 billion in 2022. The company highlighted a 29.7% increase in diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.