ALGN US S&P 500Russell 1000 Earnings call · transcribed from the recording
Align Technology (ALGN) · Q3 2026 results and valuation
Share price: $172.08 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 28 Oct 2026 and 29 Jul 2026
Net income up 24.7% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+24.7%
Net income vs Q2 2026
Outlook given
Net income 135.0M vs 108.3M
Revenue −3.9%
Against the same quarter last year (Q3 2025) it is +138.0%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 86% of company calls
Answers to analysts: restrained, but clearly less so than the script.
The step down under questioning is bigger than last call.
3 · What stood out
Guidance
Worldwide, revenue was $1.015 billion, up 1.9% year-over-year, or 2.4% at a constant currency, and in line with Align Technology's outlook.
Valuation
Is Align Technology undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.6% growth a year (3-year revenue growth), the model's fair value is $115.18 a share — the stock trades 49% above it. Today's price assumes 9.0% growth a year.
Current price
$172.08
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+9.0% for 10 yrs
Fair value / share
$115.18
Buy below
$86.39
Price vs fair value
Overvalued 49%
Price vs buy-below price
Overvalued 99%
Read between the lines
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Key theme
Align Technology reported revenue continues to reflect a shift toward lower-priced scanner configurations and more flexible acquisition models and stable ASP on a like-for-like basis…
Source quote
“Reported revenue continues to reflect a shift toward lower-priced scanner configurations and more flexible acquisition models and stable ASP on a like-for-like basis... In systems and services, revenue was $175.5 million, down 7.6 year-over-year, and generally consistent with the guidance we provided at Q2. From a profitability perspective, non-GAAP gross margin was 70.4%.”
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Guidance
Although Align Technology expects scanner volume growth and saw scanner ASPs stabilize on a like-for-like basis during Q3, product mix continues to shift towards lower-priced scanners and more flexible acquisition models...
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Guidance
Assuming no circumstances occur beyond its control that could impact its business, for Q4-2026, Align Technology expects worldwide revenues to be in the range of $1 billion to $1 billion...
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Fading
Align Technology had a mix some favorable mix from at…
Source quote
“But we had a mix some favorable mix from at...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 96% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“We have opportunities to increase orthodontist utilization, expand GP adoption, grow with DSOs, extend our leadership in kids and teens, improve affordability and patient conversion, and increase adoption of the...”
“We're focusing on increasing utilization among orthodontists, expanding Invisalign adoption among GP dentists, growing with DSOs and strategic accounts, extending our leadership in kids and teens, improving affordability and patient...”
“These growth opportunities reinforce one another, expanding our doctor customer base, increasing utilization, addressing more patients and clinical needs, improving affordability and conversion, and deepening adoption of our digital platform.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.01B | 1.06B | −3.9% | 995.7M | +1.9% |
| Gross profit | 697.5M | 757.4M | −7.9% | 639.2M | +9.1% |
| Operating income | 169.2M | 154.0M | +9.8% | 96.3M | +75.7% |
| Net income | 135.0M | 108.3M | +24.7% | 56.8M | +138.0% |
| EPS | 1.90 | 1.51 | +25.8% | 0.78 | +143.6% |
| P/E today 24.2 | 21.2 | 29.3 | −8.1 | 24.3 | −3.1 |
Topics
Most discussed now
- Align Technology delivered a solid third quarter results with record doctor submitters, record third quarter clear liner shipments…
- In EMEA, Align Technology is focused on orthodontist utilization, teen and growing patient treatment, and clinical education, especially…
- Across digital treatment planning, AI-enabled capabilities, growing patient treatment, restorative workflows, scanning solutions, and…
- It served us well this year when Align Technology thinks about its clear aligner revenue and volume, as it talked about...
- Of all, its scanner equipment sales that Align Technology has, the unit volume has been very strong.
Faded since Q2 2026
- Fading Align Technology had a mix some favorable mix from at...
- Fading Align Technology delivered a solid second quarter with record revenues of $1.06 billion, up 4.3% year-over-year, driven by record Clear…
- Fading Investments in patient financing, clinical support programs, doctor subscription offerings and practice productivity solutions supported…
- Fading You also see maybe retail doctors that they don't maybe feel certain, especially in North America, certain about the economy...
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K