Align TechnologyXTER:AFW 89 Gross Margin % is 70.82% as of Mar. 2026, which is 2% below its 10-year median of 71.90. GuruFocus rates XTER:AFW with a GF Score™ of 89/100 and a GF Value™ of €200.25 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 805 Medical Devices & Instruments companies, Align Technology ranks better than 76.02% on this metric.
Align Technology Inc gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for Align Technology's Gross Margin % or its related term are showing as below:
XTER:AFW'
s Gross Margin % Range Over the Past 10 Years
Min: 67.19 Med: 71.9 Max: 75.81
Current: 67.57
During the past 13 years, the highestGross Margin % of Align Technology was 75.81%. The lowest was 67.19%. And the median was 71.90%.
XTER:AFW's Gross Margin % is ranked better than 76.02% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.07
vs XTER:AFW: 67.57
Align Technology had a gross margin of 70.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Align Technology was -1.40% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Align Technology had a gross margin of 70.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Align Technology Gross Margin % Related Terms
Align Technology Gross Margin % Historical Data
* Premium members only.
The historical data trend for Align Technology's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XTER:AFW vs SOLV, COO, BAX: Gross Margin % Comparison
For the Medical Instruments & Supplies subindustry, Align Technology's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Align Technology Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Align Technology's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Align Technology (XTER:AFW) has a Gross Margin % of 70.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Align Technology and its competitors. This is near median its historical median of 71.90. Over the past decade, Align Technology's Gross Margin % has ranged from 67.19 to 75.81. According to the industry distribution chart, Align Technology ranks #193 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 24%.
Is Align Technology's Gross Margin % too high?
Align Technology's current Gross Margin % of 70.82% is near median its 10-year median of 71.90. Over the past 10 years, this metric has ranged from a low of 67.19 to a high of 75.81. The Medical Devices & Instruments industry median Gross Margin % is 52.07. Align Technology's value of 70.82% is 36% above this industry median. Based on the distribution chart, Align Technology ranks #193 out of 805 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Align Technology has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Align Technology's Gross Margin % compare to SOLV and COO?
According to the Medical Devices & Instruments industry distribution chart, Align Technology ranks #193 out of 805 companies for Gross Margin %. This places Align Technology in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 52.07. Align Technology's value of 70.82% is 36% above this benchmark. Historically, Align Technology's own Gross Margin % has ranged from 67.19 to 75.81 over the past decade. While the company's 10-year median is 71.90 vs. the industry median of 52.07, Align Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.07, based on 805 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Align Technology's current Gross Margin % of 70.82% is 36% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Align Technology and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Align Technology's current Gross Margin % is 70.82%, which is near median its own 10-year median of 71.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Align Technology stock overvalued right now?
Based on GuruFocus' analysis, Align Technology (XTER:AFW) is currently considered Modestly Undervalued. The stock's GF Value™ is €200.25, compared to a current price of €149.05 — trading 25.6% below its estimated fair value. The current Gross Margin % is 70.82%, which is near median its 10-year median of 71.90 and 36% above the Medical Devices & Instruments industry median of 52.07. Align Technology's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Align Technology (XTER:AFW), the current Gross Margin % is 70.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Align Technology (XTER:AFW) Overvalued in 2026?
Based on GuruFocus' analysis, Align Technology stock appears to be undervalued.
The current stock price of €149.05 is trading 25.6% below its estimated GF Value™ of €200.25.
GuruFocus considers Align Technology to be Modestly Undervalued.
Key valuation signals for XTER:AFW:
Gross Margin %: 70.82% (near median its 10-year median of 71.90)
GF Value™: €200.25 vs. price of €149.05 (25.6% below fair value)
Industry Position: 36% above the Medical Devices & Instruments median (#193 of 805)
No single metric tells the full story. See the XTER:AFW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the Food and Drug Administration in 1998 and has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans, and iTero scans make up over half of these scans.
89GF Score
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