We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Align Technology (ALGN) Up 6.4% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Align Technology (ALGN - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Align Technology due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
ALGN Q3 Earnings and Revenue Beat, Margins Crash
Align Technology, Inc. (ALGN - Free Report) delivered third-quarter 2025 adjusted earnings per share (EPS) of $2.61, up 11.1% from the year-ago level. The bottom line surpassed the Zacks Consensus Estimate by 10.1%.
GAAP EPS for the quarter was 78 cents, reflecting a fall of 49.7% from $1.55 in the comparable period of 2024.
ALGN’s Q3 Revenues
The top line increased 1.8% year over year to $995.7 million, and surpassed the Zacks Consensus Estimate by 2.5%.
Total revenues benefited from foreign exchange by approximately 1.6% year over year.
Following the earnings announcement, ALGN stock rose 15.1% in after-market trading yesterday.
ALGN’s Segments in Detail
The company has two reportable segments — Clear Aligner, and Imaging Systems and CAD/CAM Services (Systems and Services).
Revenues in the Clear Aligner segment were up 2.4% year over year to $805.8 million.
Revenues from Imaging Systems & CAD/CAM Services fell 0.6% to $189.9 million in the reported quarter. The segment, too, witnessed a favorable currency impact of 1.4% year over year.
ALGN’s Q3 Margins
Gross profit in the third quarter was $639.2 million, down 6.2% year over year. The gross margin contracted 552 basis points (bps) year over year to 64.2% due to an increase of 20.4% in the cost of net revenues.
SG&A expenses fell 3.8% to $417.8 million, while R&D expenses rose 9.4% to $93.3 million.
Operating income totaled $128.1 million, down 21.1% year over year. The operating margin contracted 374 bps to 12.9%.
Financial Details of ALGN
The company exited the third quarter with cash and cash equivalents of $1.00 billion compared with $901.2 million at the end of the second quarter.
Cumulative net cash provided by operating activities was $370 million compared with $452.1 million at the end of the third quarter of 2024.
Stock Repurchase
During the reported quarter, the company repurchased approximately 0.5 million shares of common stock at an average price of $136.77 per share. These repurchases were made following the $200.0 million open market repurchase plan announced on Aug. 5, 2025, expected to be completed in January 2026.
ALGN's Outlook
Align Technology provided its sales outlook for full-year 2025. It has also provided guidance for the fourth quarter of 2025.
For the full year, ALGN expects Clear Aligner revenue growth to be flat to slightly up from 2024, assuming foreign exchange at current spot rates. The Zacks Consensus Estimate for 2025 revenues is pegged at $4.01 billion, suggesting 0.2% growth year over year.
The GAAP operating margin is anticipated to range between 13.6% and 13.8% (earlier 13% and 14%).
To support continued expansion, the company expects to invest $100 (earlier $100-$125 million) in capital expenditures, primarily related to technology upgrades.
For the fourth quarter, ALGN anticipates worldwide revenues to be in the band of $1.03-$1.05 billion. The Zacks Consensus Estimate is pegged at $1.04 billion.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Align Technology has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Align Technology has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Align Technology (ALGN) Up 6.4% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Align Technology (ALGN - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Align Technology due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
ALGN Q3 Earnings and Revenue Beat, Margins Crash
Align Technology, Inc. (ALGN - Free Report) delivered third-quarter 2025 adjusted earnings per share (EPS) of $2.61, up 11.1% from the year-ago level. The bottom line surpassed the Zacks Consensus Estimate by 10.1%.
GAAP EPS for the quarter was 78 cents, reflecting a fall of 49.7% from $1.55 in the comparable period of 2024.
ALGN’s Q3 Revenues
The top line increased 1.8% year over year to $995.7 million, and surpassed the Zacks Consensus Estimate by 2.5%.
Total revenues benefited from foreign exchange by approximately 1.6% year over year.
Following the earnings announcement, ALGN stock rose 15.1% in after-market trading yesterday.
ALGN’s Segments in Detail
The company has two reportable segments — Clear Aligner, and Imaging Systems and CAD/CAM Services (Systems and Services).
Revenues in the Clear Aligner segment were up 2.4% year over year to $805.8 million.
Clear Aligner revenues experienced a 1.6% year-over-year favorable foreign exchange impact.
Revenues from Imaging Systems & CAD/CAM Services fell 0.6% to $189.9 million in the reported quarter. The segment, too, witnessed a favorable currency impact of 1.4% year over year.
ALGN’s Q3 Margins
Gross profit in the third quarter was $639.2 million, down 6.2% year over year. The gross margin contracted 552 basis points (bps) year over year to 64.2% due to an increase of 20.4% in the cost of net revenues.
SG&A expenses fell 3.8% to $417.8 million, while R&D expenses rose 9.4% to $93.3 million.
Operating income totaled $128.1 million, down 21.1% year over year. The operating margin contracted 374 bps to 12.9%.
Financial Details of ALGN
The company exited the third quarter with cash and cash equivalents of $1.00 billion compared with $901.2 million at the end of the second quarter.
Cumulative net cash provided by operating activities was $370 million compared with $452.1 million at the end of the third quarter of 2024.
Stock Repurchase
During the reported quarter, the company repurchased approximately 0.5 million shares of common stock at an average price of $136.77 per share. These repurchases were made following the $200.0 million open market repurchase plan announced on Aug. 5, 2025, expected to be completed in January 2026.
ALGN's Outlook
Align Technology provided its sales outlook for full-year 2025. It has also provided guidance for the fourth quarter of 2025.
For the full year, ALGN expects Clear Aligner revenue growth to be flat to slightly up from 2024, assuming foreign exchange at current spot rates. The Zacks Consensus Estimate for 2025 revenues is pegged at $4.01 billion, suggesting 0.2% growth year over year.
The GAAP operating margin is anticipated to range between 13.6% and 13.8% (earlier 13% and 14%).
To support continued expansion, the company expects to invest $100 (earlier $100-$125 million) in capital expenditures, primarily related to technology upgrades.
For the fourth quarter, ALGN anticipates worldwide revenues to be in the band of $1.03-$1.05 billion. The Zacks Consensus Estimate is pegged at $1.04 billion.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Align Technology has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Align Technology has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.