Align Tech (ALGN) Q3 2026 Earnings Report
MX:ALGN Q3 2026 EPS Results
- Actual EPS
- MXN 52.26
- Consensus EPS
- MXN 51.64
- Beat/Miss
- Beat by +MXN 0.62
- One Year Ago EPS
- MXN 48.71
MX:ALGN Q3 2026 Revenue Results
- Actual Revenue
- MXN 18.94B
- Expected Revenue
- MXN 18.72B
- Beat/Miss
- Beat by +MXN 220.78M
- YoY Revenue Growth
- +1.92%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
Align Tech's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was positive overall. Align reported record Clear Aligner shipments and doctor submitters, broad international growth, improved utilization, stronger operating margins, healthy cash generation and continued investment in digital workflows and 3D-printing innovation. These strengths outweighed the lowlights, which included a challenging consumer environment, lower Systems and Services revenue, ASP and mix pressure, North American GP retail weakness, foreign exchange effects and reduced fourth-quarter revenue assumptions.
For Q4 2026, assuming no circumstances occur beyond our control that could impact our business, Align expects worldwide revenues in the range of $1 billion to $1.020 billion, Clear Aligner volume to be up low single digits year-over-year, Clear Aligner ASP to be down approximately 1% year-over-year, Systems and Services revenue in the range of $170 million to $180 million, GAAP gross margin of approximately 71%, non-GAAP gross margin of approximately 72%, GAAP operating margin of approximately 20%, non-GAAP operating margin of approximately 26%, and to repurchase up to $300 million of common stock; for fiscal 2026, it expects worldwide revenue of approximately $4.11 billion to $4.13 billion, Clear Aligner volume and revenue growth up approximately 5% to 6% year-over-year, Clear Aligner ASP slightly below 2025, Systems and Services revenue of $715 million to $725 million, GAAP operating margin of approximately 16.2%, up approximately 2.7 points year-over-year, non-GAAP operating margin of approximately 23.7%, representing approximately 100 basis point improvement year-over-year, capital expenditures of approximately $125 million to $150 million, and approximately $500 million of common-stock repurchases; for 2027, Align expects another year of revenue growth and margin expansion, continued Invisalign volume growth, record doctor submitters, improving utilization, a broadly stable Clear Aligner pricing environment with ASP slightly down, Systems and Services revenue growth with solid unit growth and stable ASPs, and at least another 100 basis points of non-GAAP operating margin improvement, with preliminary planning assuming an operating environment broadly consistent with current conditions and not requiring a consumer recovery.
- Record Clear Aligner Shipments and Doctor SubmittersThird-quarter worldwide revenue was $1.015 billion, up 1.9% year-over-year or 2.4% at constant currency and in line with outlook. Clear Aligner shipments increased 6.6% to a record 691,000, at the high end of the expected mid-single-digit growth range. A record 91,000 doctors submitted Invisalign cases, up more than 3% year-over-year, while overall utilization increased 3.4%.
- Clear Aligner Revenue GrowthQ3 Clear Aligner revenue was $839.3 million, up 4.2% year-over-year or 4.7% at constant currency, primarily reflecting higher volume, price increases, lower net deferrals and higher non-case revenue.
- Improved Operating ProfitabilityQ3 non-GAAP operating margin was 24.4%, up approximately 0.5 percentage points year-over-year and approximately 1.4 percentage points at constant currency, exceeding the company's outlook due to disciplined expense management and productivity improvements. GAAP operating margin was 16.7%, up approximately 7 percentage points year-over-year or 8.5 percentage points at constant currency.
- Gross Margin Improvement Versus Prior YearOverall GAAP gross margin was 68.7%, up approximately 4.5 percentage points year-over-year or 5.3 percentage points at constant currency. Clear Aligner gross margin increased approximately 4.4 percentage points to 69.3%, while Systems and Services gross margin increased approximately 4.9 percentage points to 66.2%, supported by operational efficiencies, COGS efficiencies and lower restructuring-related costs.
- Strong Earnings and Cash GenerationQ3 diluted GAAP EPS was $1.90, up $1.12 from the prior year, while non-GAAP diluted EPS was $2.80, up 7.3% year-over-year. Cash and cash equivalents totaled $1.145 billion, up approximately $140 million year-over-year. Cash flow from operations was $183.2 million and free cash flow was approximately $138 million.
- Share Repurchases and Capital ReturnAlign repurchased approximately 627,000 shares during Q3 at an average price of $164.73 per share, returning $103.3 million to shareholders. Year-to-date repurchases totaled $200 million, and the company expects to repurchase approximately $500 million of common stock during fiscal 2026, up from $466 million in 2025.
- Latin America GrowthLatin American Clear Aligner growth remained strong and was up double digits year-over-year. DSO shipments increased significantly, while retail also grew across both GP dentists and orthodontists.
- Broad-Based EMEA GrowthEMEA Clear Aligner shipments increased at a double-digit rate year-over-year, supported by strong utilization among orthodontists and GP dentists and double-digit DSO growth. EMEA retail shipments increased 8% year-over-year, with growth across both orthodontists and GP dentist customers.
- APAC Shipment and Retail MomentumAPAC Clear Aligner shipments increased year-over-year and were up double digits sequentially, driven by record doctor submitters and strong younger-patient demand. APAC retail shipments increased 16% year-over-year, with double-digit growth across orthodontists and GP dentists. Teen shipments also increased double digits year-over-year, led by China.
- Early Improvement in North American Orthodontics and DSO PerformanceNorth America total orthodontic shipments increased year-over-year for the first time in 6 quarters. North American DSO shipments increased at a double-digit rate across both orthodontists and GP customers, while orthodontist retail shipments improved sequentially and teen orthodontist retail shipments increased year-over-year.
- Expansion in Younger Patients and Complex TreatmentsYounger patients remained an important contributor to Q3 performance, with younger-patient shipments increasing at a double-digit rate in international markets and strong teen performance across APAC and EMEA. Invisalign First, Invisalign Palatal Expander and Mandibular Advancement with Occlusal Blocks are expanding the range of younger and more complex patients that doctors can treat.
- Growth in Zero Additional Aligner OfferingWorldwide Zero Additional Aligner volume increased at a triple-digit rate year-over-year in Q3. The offering gives doctors greater treatment and pricing flexibility, while patient financing and commercial programs are intended to help practices convert more prospective patients.
- Expansion of the Align Digital PlatformAlign is connecting iTero scanning and diagnostics, AI-enabled treatment planning, Invisalign treatment, exocad restorative workflows and practice applications into a more integrated digital workflow. Invisalign Advanced Restorative Treatment is expanding Align's role in comprehensive dentistry and creating additional clinical use cases across the broader dental marketplace.
- iTero Installed Base and Scanner Placement GrowthThe number of scanner units placed, including leased, rented and certified preowned systems, increased double digits year-over-year to more than 157,000 systems globally. The number of leased iTero units also increased at a double-digit rate year-over-year, and like-for-like scanner pricing stabilized during the quarter.
- Productivity Benefit From iTero Lumina PilotIn a limited pilot involving 11 DSO location practices integrating iTero Lumina with Invisalign, practice staff increased new-patient exam capacity by approximately 15% without adding staff or extending operating hours. Nearly three-quarters of participating locations improved productivity.
- Financing Initiatives Gaining TractionAlign reported encouraging early traction from Healthcare Finance Direct and is evaluating additional financing opportunities, including a new CareCredit pilot. Financing initiatives are being expanded across the U.S., Europe and other regions to help patients afford treatment and help practices convert prospective patients.
- Strategic Review and Efficiency InitiativesThe strategic and operating model review with Elliott Management is progressing, with work focused on commercial effectiveness, organizational scalability, operating efficiency and resource allocation. Align is also evaluating additional margin expansion opportunities in North America while continuing manufacturing, productivity, automation, treatment-efficiency and resource-allocation initiatives.
- Innovation Pipeline and Direct 3D PrintingAlign is continuing to invest in digital treatment planning, AI-enabled capabilities, growing-patient treatment, restorative workflows, scanning solutions and CAD/CAM software. Its NXT direct-fabrication platform is intended to improve control, consistency and precision across appliances, building on the Invisalign Palatal Expander and Invisalign Specifix attachment systems.
- Launch of Invisalign Sports Mouthguard PilotAlign began a U.S. pilot of Invisalign Sports Guard, a custom direct 3D-printed sports mouthguard made from an iTero digital scan. The product is a premium offering distributed through participating Invisalign providers and is designed for customization across sports, thicknesses and athlete needs.
- CEO Succession PlanThe Board appointed Jennifer Davis as Align's next CEO. She will join as CEO-elect and a Board member on November 2 and assume the CEO and President roles on December 31, 2026. Management described the transition as carefully planned and said Davis brings 33 years of leadership experience, including leading Procter & Gamble's global health care business.
- Fiscal 2026 and 2027 Margin FrameworkFor fiscal 2026, Align expects revenue of approximately $4.11 billion to $4.13 billion, Clear Aligner volume and revenue growth of approximately 5% to 6%, GAAP operating margin of approximately 16.2% and non-GAAP operating margin of approximately 23.7%, representing approximately 100 basis points of year-over-year improvement. For 2027, the company continues to target at least another 100 basis points of non-GAAP operating margin improvement.
- China VBP PositioningAlign expects to participate in China's Volume-Based Procurement process as products are entered during the fourth quarter. Management said approximately 15% of its China business is public, with most business private, and characterized the potential net revenue impact as neutral to positive because increased volume could help offset pricing effects.
MX:ALGN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2026 (Q4) | 57.65- | 61.4 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 51.6452.26 | 48.71 | 7.28% (+3.55) | |
| Jul 29, 2026 | 2026 (Q2) | 48.8249.27 | 46.47 | 6.02% (+2.80) | |
| Apr 29, 2026 | 2026 (Q1) | 42.8348.15 | 39.75 | 21.13% (+8.40) | |
| Feb 04, 2026 | 2025 (Q4) | 55.5061.40 | 45.54 | 34.84% (+15.86) | |
| Oct 29, 2025 | 2025 (Q3) | 44.8548.71 | 43.86 | 11.06% (+4.85) | |
| Jul 30, 2025 | 2025 (Q2) | 48.0246.47 | 44.98 | 3.32% (+1.49) | |
| Apr 30, 2025 | 2025 (Q1) | 37.0639.75 | 39.94 | -0.47% (-0.19) | |
| Feb 05, 2025 | 2024 (Q4) | 45.6945.54 | 45.16 | 0.83% (+0.37) | |
| Oct 23, 2024 | 2024 (Q3) | 43.1943.86 | 39.94 | 9.81% (+3.92) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.