Align Technology (NASDAQ:ALGN) Posts Quarterly Earnings Results, Beats Expectations By $0.30 EPS

Align Technology (NASDAQ:ALGN) posted its quarterly earnings data on Wednesday. The medical equipment provider reported $3.29 EPS for the quarter, beating analysts’ consensus estimates of $2.99 by $0.30, FiscalAI reports. The business had revenue of $1.05 billion for the quarter, compared to analyst estimates of $1.03 billion. Align Technology had a return on equity of 13.96% and a net margin of 9.50%.The business’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter last year, the company earned $2.44 earnings per share.

Here are the key takeaways from Align Technology’s conference call:

• Align finished Q4 and FY2025 with record results — Q4 revenue of $1.048 billion and FY2025 revenue of $4.0 billion, while non‑GAAP operating margin reached its highest level since 2021 (22.7% for the year), supporting management’s positive outlook for 2026.
• Clear aligner demand remains strong: FY2025 record volumes of 2.6 million cases (up 4.7% YoY) and a record ~936,000 teens/kids starts (up 7.8%), driven by Invisalign First, the palate expander, MAOB, and rising GP adoption.
• DSO and international penetration is a key growth driver — DSOs represent ~25% of volume, with double‑ to triple‑digit growth in top DSO accounts and robust EMEA, LATAM and APAC performance that management expects to continue scaling.
• Near‑term headwinds include an expected ASP decline of ~1–2% in 2026, early margin dilution from the transition to direct 3D printed fabrication, and uncertainty around China’s VBP policy (not included in guidance), which could pressure pricing and margins.
• Balance sheet and capital allocation support shareholder returns — cash & equivalents of $1.095 billion, strong Q4 free cash flow (~$187M), and $465.9M of 2025 buybacks with ~$831.2M remaining under the $1B repurchase program.

Align Technology Stock Performance

NASDAQ ALGN opened at $161.30 on Thursday. The firm has a market capitalization of $11.57 billion, a price-to-earnings ratio of 31.26, a PEG ratio of 1.76 and a beta of 1.84. Align Technology has a one year low of $122.00 and a one year high of $232.20. The company’s 50 day moving average price is $161.89 and its 200 day moving average price is $148.59.

Analyst Upgrades and Downgrades

Several research firms have commented on ALGN. Barclays started coverage on shares of Align Technology in a research note on Monday, December 8th. They issued an “equal weight” rating and a $170.00 target price for the company. Wall Street Zen upgraded Align Technology from a “hold” rating to a “buy” rating in a report on Saturday, January 3rd. Weiss Ratings upgraded Align Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, January 16th. Morgan Stanley increased their target price on Align Technology from $142.00 to $154.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 30th. Finally, Evercore ISI lowered their price target on Align Technology from $220.00 to $170.00 and set an “outperform” rating for the company in a report on Tuesday, November 25th. Six investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $176.82.

Hedge Funds Weigh In On Align Technology

A number of hedge funds have recently made changes to their positions in ALGN. Caitong International Asset Management Co. Ltd increased its holdings in Align Technology by 1,773.3% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 281 shares of the medical equipment provider’s stock valued at $35,000 after purchasing an additional 266 shares in the last quarter. CYBER HORNET ETFs LLC purchased a new stake in shares of Align Technology in the second quarter worth about $36,000. MUFG Securities EMEA plc purchased a new stake in shares of Align Technology during the second quarter valued at approximately $38,000. Advisory Services Network LLC acquired a new position in shares of Align Technology during the third quarter worth $100,000. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of Align Technology by 55.7% in the second quarter. EverSource Wealth Advisors LLC now owns 531 shares of the medical equipment provider’s stock valued at $101,000 after purchasing an additional 190 shares during the period. Hedge funds and other institutional investors own 88.43% of the company’s stock.

Key Align Technology News

Here are the key news stories impacting Align Technology this week:

• Positive Sentiment: Q4 results beat consensus — GAAP EPS of $3.29 vs. $2.99 expected and revenue of ~$1.048B vs. ~$1.03B expected, showing year-over-year improvement and better-than-forecast profitability. Align Technology (ALGN) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management cited strong demand for dental products (Invisalign system and related digital solutions) as the driver of the beat, which supports revenue momentum going into the new quarter. Align Technology beats fourth-quarter results estimates on dental products demand
• Positive Sentiment: Full press release and reported metrics: total Q4 revenue +5.3% year-over-year and sequential growth; company provided supporting slide deck and call for more detail (useful for investors who want line-of-business and regional breakdowns). Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results
• Neutral Sentiment: Q1 guidance was reported roughly in line with analyst expectations — this tempers upside from the print (no major beat-and-raise) and means future stock moves will depend on execution and trends called out on the conference call. Align Technology beats fourth-quarter results estimates on dental products demand

Align Technology Company Profile

Align Technology, Inc (NASDAQ: ALGN) pioneered the use of digital technology in orthodontics through the development of the Invisalign system, a series of clear, removable aligners that provide an alternative to traditional metal braces. Since its founding in 1997 by Zia Chishti and Kelsey Wirth, the Tempe, Arizona–based company has expanded its focus to include intraoral scanners, CAD/CAM software for dental laboratories and comprehensive digital dentistry solutions.

The company’s signature Invisalign system leverages 3D imaging and computer-aided design (CAD) to create customized aligners that gradually reposition teeth, improving patient comfort and treatment predictability.