ALGN · 10-Q · 2026Q2 · Full report

Trade Policy and Tariffs

ALIGN TECHNOLOGY INC · 2026-08-05 · Importance 32 · Surprise 24

Management identifies uncertainty surrounding tariffs, retaliatory tariffs, and protectionist measures as a risk to revenue and cost of goods sold. The principal jurisdictions identified are the United States, China, Europe, Brazil, Canada, Israel, and Mexico, with exposure depending on tariff rates, covered goods, timing, and retaliation. U.S.-China trade tensions could restrict raw materials, components, or parts used by Align or its suppliers. Tariff refunds contributed to higher gross margins in the second quarter and first six months of 2026, but the company continues to monitor and mitigate evolving trade restrictions.