Align Technology Q3 profit rises as Clear Aligner volume climbs 6.6%

Align Technology, Inc. (ALGN) said on Oct. 28 that third-quarter revenue rose 1.9% from a year earlier to $1,014.8 million, while non-GAAP diluted earnings of $2.80 per share were below the $2.83 consensus estimate compiled by Finnhub.

Revenue also came in below the $1.03 billion estimate, according to the same source.

The company said in a press release that Clear Aligner revenue rose 4.2% to $839.3 million. Revenue from Imaging Systems and CAD/CAM Services fell 7.6% to $175.5 million.

Here's how the company did:

• Revenue: $1,014.8 million vs. $995.7 million a year earlier, below the $1.03 billion estimate
• Non-GAAP EPS: $2.80 per diluted share vs. $2.61 a year earlier, below the $2.83 expected, according to Finnhub

GAAP net income was $135.0 million, or $1.90 per diluted share, compared with $56.8 million, or 78 cents per share, a year earlier.

Non-GAAP operating margin was 24.4%, up 0.5 points from a year earlier. GAAP operating margin was 16.7%, compared with 9.7% in the third quarter of 2025.

CEO Joe Hogan said, “We delivered solid third-quarter results, with Q3 revenues and Clear Aligner volumes in line with our outlook and non-GAAP operating margin was above our prior guidance.”

Hogan said Clear Aligner volume was 690.6 thousand cases, up 6.6% year over year. The company said North American orthodontist shipments increased year over year for the first time in six quarters.

Costs and charges

The company said third-quarter operating income was reduced by a $5.6 million accrual related to UK VAT. Restructuring and other charges were $17.2 million in operating expenses.

Foreign exchange unfavorably affected revenue by approximately $4.7 million sequentially, the company said.

2026 guidance

For the fourth quarter, the company expects worldwide revenue of $1,000 million to $1,020 million. It expects GAAP operating margin of approximately 20.0% and non-GAAP operating margin of approximately 26.0%.

For fiscal 2026, the company expects worldwide revenue of $4,110 million to $4,130 million. It expects non-GAAP operating margin of approximately 23.7%, a 100-basis point improvement year over year, consistent with its previous guidance.

Align Technology CFO and EVP Global Finance John Morici said, “As we look to 2027, we believe we are positioned to deliver another year of revenue growth and margin expansion.”

Share repurchases

During the third quarter, the company repurchased approximately 627.3 thousand shares at an average price of $164.73. Those purchases were made under a $200.0 million plan announced on April 29, 2026, which it completed earlier this month.

As of Sept. 30, $630.0 million remained available under the $1.0 billion repurchase program announced in April 2025. The company expects to repurchase up to $300.0 million of its stock in the fourth quarter and about $500 million in 2026.

The company said it had approximately $1,144.9 million in cash and cash equivalents as of Sept. 30.