Key Highlights:

  • Revenue came in at USD 1,056.2 million, up 4.3% year over year reflecting record Clear Aligner volumes and higher aligner.
  • Q3 Revenue Guidance totaled USD 1 billion to USD 1.02 billion, assuming sequential seasonality and continued scanner mix shifts.
  • Clear Aligner Revenue stood at USD 870.9 million, growing 8.2% year over year primarily due to higher volume and price.
  • Clear Aligner Shipments was reported at 691,785 cases, growing 7.4% year over year driven by expansion in APAC and EMEA.

Align Technology, Inc. (NASDAQ:ALGN) is scheduled to report third quarter results on Wednesday, Oct. 28, after the market close. Consensus estimates call for adjusted earnings per share of USD 2.77 on revenue of USD 1.00 billion, against a market capitalization of USD 10.82 billion.

In the most recently reported quarter, Revenue came in at USD 1,056.2 million, up 4.3% year over year reflecting record Clear Aligner volumes and higher aligner ASPs.

Systems and Services Revenue and Other Business Trends

Systems and Services Revenue came in at USD 185.3 million, down 10.8% year over year due to capital equipment market softness and a shift to leasing models. Clear Aligner ASP totaled USD 1,260, up 0.8% year over year due to price increases and lower net deferrals. Non-GAAP Operating Margin stood at 22.9%, up 1.6 percentage points year over year due to operational efficiencies and higher aligner ASPs. Teen and Growing Patient Cases was reported at 240,000, increasing 7.2% year over year led by strong adoption in China and Brazil.

What Management Guided

Full Year Revenue Guidance came in at 3% to 4% growth, reflecting stable North American performance and double-digit international growth. Capital Expenditures Guidance totaled USD 125 million to USD 150 million for fiscal 2026, focused on manufacturing capacity and technology upgrades.

Invisalign Trained Doctors and Capital Position

Invisalign Trained Doctors came in at 89,175, up 3.4% year over year from continued global expansion of trained providers. Digital Scans totaled 12.4 million, up 16% year over year as doctors increased utilization of the iTero platform. U.K. VAT Liability stood at USD 37.5 million, recorded as an estimated liability after an unfavorable tribunal ruling on the tax-exempt status of aligners. Share Repurchases was reported at USD 67 million in the second quarter, part of an increased annual target of USD 400 million to USD 500 million. Cash and Cash Equivalents came in at USD 1,102.6 million, an increase of USD 201.4 million compared to the prior year providing capital for innovation.

Non-GAAP Gross Margin and Additional Detail

Non-GAAP Gross Margin came in at 72.3%, up 1.8 percentage points year over year due to manufacturing throughput and operational efficiencies. GP Aligner Shipments totaled grew 6.6% year over year, showing continued momentum across non-orthodontist channels. Ortho Aligner Shipments stood at up 7.8% year over year, reflecting strength in the professional orthodontist segment. Exocad Revenue was reported at delivered double-digit year-over-year growth, reinforcing the integration of restorative and orthodontic workflows. GAAP Effective Tax Rate came in at 27.2%, down from 28.2% in the prior year due to increased earnings in low-tax jurisdictions.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Q3 Revenue Guidance came in at USD 1 billion to USD 1.02 billion, assuming sequential seasonality and continued scanner mix shifts.