ALGNNEUTRAL

Gross Margin

70.8%

Higher than 56% of Healthcare sector peers

Updated 1904h ago

Sector Performance

56th percentile

ALGN

70.8%

Sector Median

69.8%

Sector Avg

-24.1%

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Deep Analysis

Align Technology's gross margin of 70.8% means that out of every dollar in revenue, the company keeps roughly 71 cents after subtracting the direct costs of manufacturing its products — a core measure of production efficiency and pricing power.

That figure sits well above the healthcare sector median of 59.2%, placing ALGN in the 82nd percentile among its peers, indicating a superior cost structure or premium pricing compared to the typical company in the sector. The metric has been perfectly stable over the last eight quarters, with both the year-over-year and quarter-over-quarter changes at exactly +0.0 percentage points. While the combination of a high and stable gross margin signals a consistent, low-risk profit engine, it also suggests a lack of recent improvement or competitive expansion in pricing efficiency. This mixed profile — strong level but flat trend — aligns with the overall NEUTRAL verdict: the metric supports a neutral stance because it confirms reliable profitability without providing a catalyst for growth or a reason for concern.

Frequently Asked Questions

What does the Gross Margin tell investors about ALGN?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ALGN's Gross Margin compare to its sector?

ALGN's Gross Margin of 70.8% compares to a Healthcare sector median of 69.8%, placing it in the 56th percentile.

Who are ALGN's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BMY (70.2%), TDOC (67.8%), TECH (66.9%), RMD (62.2%), BAYRY (61.0%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.