Align Revenue Reaches $1.015 Billion as Growth Slows to 1.9% in Third Quarter
Key Facts
Align Technology reported revenue of $1.0148 billion in the third quarter of 2026, up 1.9% year over year, according to results announced by the company. Revenue was 3.9% below the second-quarter level of $1.0562 billion, a company record. Net income under U.S. generally accepted accounting principles was $135 million, compared with $56.8 million in the same period last year. Diluted earnings per share under the same standard were $1.90, versus $0.78 a year earlier. Adjusted diluted earnings per share were $2.80, compared with $2.61 in the third quarter of 2025.
The company’s two main businesses had mixed performances during the quarter. Revenue from clear aligners rose 4.2% year over year to $839.3 million. In contrast, revenue from imaging systems and computer-aided design and manufacturing services fell 7.6% to $175.5 million. Clear aligner shipments totaled 690,635 cases, up 6.6% from 647,750 cases in the same period last year. They were slightly below the 691,785 cases in the second quarter, a decline of 0.2%. Clear aligner revenue in the second quarter was $870.9 million, up 8.2% year over year.
Chief Executive Joe Hogan said quarterly revenue and clear aligner volumes were "in line with our expectations," and that the adjusted operating margin exceeded prior guidance. The adjusted operating margin was 24.4%, supported by expense management and productivity improvements, the company said. But the adjusted gross margin was 70.4%, slightly below the company’s expectations. The company attributed this to higher fuel-related freight costs, lower average selling prices for clear aligners, and differences in product and regional mix. Hogan added that discretionary healthcare spending and investment in capital equipment continued to weigh on demand in the dental and orthodontics sectors.
The company pointed to improvement in some demand channels: North American orthodontist shipments rose year over year for the first time in 6 quarters. Dental service organization shipments also increased by double digits, according to the earnings release. However, the company said weak discretionary spending and investment in equipment persisted during the third quarter. Its chief financial officer added that the fourth-quarter outlook reflects the conditions the company sees in the broader market. The company’s shares closed at $151.95 on October 27, 2026, according to EL7 data.
Align forecast low-single-digit year-over-year growth in clear aligner volumes in the fourth quarter and a decline of about 1% in average selling price. It set a range for global revenue in the period of $1.00 billion to $1.02 billion, compared with analysts’ consensus of $1.05 billion. It also forecast full-year 2026 revenue of $4.11 billion to $4.13 billion. After the results were announced, shares fell 5% in extended trading on October 28, according to coverage carried by Reuters via Investing.com. The company said it expects 2027 to bring another year of revenue growth and margin improvement, assuming an operating environment similar to current conditions and no need for a consumer recovery.
The company repurchased about 627,300 shares during the third quarter at an average price of $164.73 per share, according to its statement. It forecast share repurchases of up to $300 million in the fourth quarter. The move is part of the company’s capital plans for the period in which it announced its new revenue guidance. The fourth-quarter range puts expected revenue below the average analyst estimate cited in coverage published after the results. The preliminary 2027 estimates assume operating conditions remain close to current levels.