ALGN · 10-Q · 2026Q3 · Full report

Operating Margin Drivers

ALIGN TECHNOLOGY INC · 2026-11-04 · Importance 63 · Surprise 64

Third-quarter 2026 operating income increased $72.9 million year over year to $169.2 million, and operating margin expanded to 16.7% from 9.7%. For the first nine months, operating income increased $74.7 million to $465.1 million and operating margin rose to 15.0% from 13.1%. Clear Aligner third-quarter operating income increased $59.5 million to $310.2 million, with margin rising to 37.0% from 31.1%, primarily due to higher gross margin and lower advertising and marketing expense. Systems and Services third-quarter operating income increased $7.2 million to $67.0 million, with margin rising to 38.2% from 31.5%, reflecting higher gross margin and lower employee costs.

Key facts

• Align’s Q3 2026 Clear Aligner operating margin increased year over year primarily from higher gross margin and lower advertising and marketing expense, partly offset by higher employee costs and credit-card transaction fees. source
• Align’s Q3 2026 Systems and Services operating margin increased year over year primarily from higher gross margin and lower operating expenses related to lower employee costs. source