Align Tech (ALGN)
NASDAQ:ALGN
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Align Tech
(NASDAQ:ALGN)
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Rating:73Outperform
Price Target:
$199.00
▲(4.70% Upside)
Action:ReiteratedDate:05/02/26
The score is driven primarily by strong financial quality (notably a very conservative balance sheet and solid profitability/cash generation) and a constructive earnings-call outlook with record volumes, improving margins, and continued buybacks. These positives are moderated by a premium valuation (P/E ~27), mixed technical momentum, and guidance/risk factors including ASP pressure, North America softness, and geopolitical uncertainty.
Positive Factors
Conservative Balance Sheet
Extremely low leverage and growing equity provide durable financial flexibility. This reduces refinancing risk, supports sustained R&D and capex, enables opportunistic M&A or opportunistic buybacks, and cushions the business versus cyclical downturns over the next 2–6 months and beyond.
Negative Factors
North America Volume Weakness
Slower U.S./North American adoption erodes a historically high-margin market, increasing reliance on international growth. If NA demand stays subdued, it pressures consolidated revenue and limits ability to offset ASP/mix headwinds, raising execution risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage and growing equity provide durable financial flexibility. This reduces refinancing risk, supports sustained R&D and capex, enables opportunistic M&A or opportunistic buybacks, and cushions the business versus cyclical downturns over the next 2–6 months and beyond.
Read all positive factors
Align Tech (ALGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.81B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)27.1
Beta (1Y)1.35
Revenue Growth2.89%
EPS Growth8.65%
CountryUS
Employees21,200
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)5.97
Shares Outstanding71,617,270
10 Day Avg. Volume847,184
30 Day Avg. Volume1,166,485
Financial Highlights & Ratios
PEG Ratio51.80
Price to Book (P/B)2.80
Price to Sales (P/S)2.81
P/FCF Ratio23.08
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.77
Enterprise Value/Gross Profit4.09
Enterprise Value/Ebitda14.05
Forecast
1Y Price Target
$203.86Price Target Upside7.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)11.3
Revenue Forecast (FY)$4.18B
Align Tech Business Overview & Revenue Model
Company Description
Align Technology, Inc., a medical device company, designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontists and general practitioner dentists, and restorative and aesthetic dentistry. ...
How the Company Makes Money
Align Technology primarily generates revenue by selling products and services used by dentists and orthodontists to diagnose, plan, and deliver orthodontic treatment and digital restorative care. Its revenue is largely organized into two main segm...
Align Tech Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, highlighting which areas are driving growth and which may need strategic adjustments.
Shows how much revenue each business segment generates, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyAlign Tech Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial performance: record Clear Aligner volumes, broad international growth, margin expansion, EPS and cash generation, and traction for commercial and product initiatives (DSP, financing, iTero/exocad integration). Management reiterated full-year guidance while taking a prudent stance given geopolitical uncertainty and flagged near-term risks (North America softness, Systems & Services seasonality, higher OpEx and resin/freight exposure). On balance the positives — robust volume growth, improving margins, product/platform momentum and capital returns — outweigh the challenges, though the company remains cautious on macro risks.Positive Updates
Topline Growth
Total Q1 revenue of $1.041 billion, up 6.2% year-over-year (constant currency benefit ~4.5% / $44.9M), driven primarily by Clear Aligner demand.
Negative Updates
Modest North America Weakness
North America Clear Aligner volumes showed a modest year-over-year decline (company described North America as 'modest but stable' decline), while international markets grew double-digits—indicating regional imbalance in growth contribution.
Read all updates
Q1-2026 Updates
Positive
Negative
Topline Growth
Total Q1 revenue of $1.041 billion, up 6.2% year-over-year (constant currency benefit ~4.5% / $44.9M), driven primarily by Clear Aligner demand.
Read all positive updates
Company Guidance
Align guided Q2 2026 revenue of $1.040–$1.060 billion (≈+3%–5% YoY), with Clear Aligner volumes expected to be up sequentially and year‑over‑year, Clear Aligner ASPs flat sequentially and YoY, and Systems & Services revenue up sequentially, while assuming some Q2 impact from the Middle East. For fiscal 2026 they reaffirmed full‑year revenue growth of +3%–4% YoY, Clear Aligner volume growth of mid‑single digits, an expected full‑year ASP decline of ~1%–2% YoY, GAAP operating‑margin targets cited as ~16.4% in one comment and a full‑year objective slightly below 18% (≈+400 bps vs. 2025), non‑GAAP operating‑margin references of ~21.5% and a reaffirmed full‑year target of ~23.7% (+100 bps YoY), an FX benefit trending toward ~100 basis points for the year, capital expenditures of $125–$150 million, and a planned additional share repurchase of up to $200 million over six months beginning May 1.Align Tech Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.10B | 4.03B | 4.00B | 3.86B | 3.73B | 3.95B |
| Gross Profit | 2.77B | 2.76B | 2.80B | 2.71B | 2.63B | 2.94B |
| EBITDA | 806.86M | 765.87M | 816.80M | 799.05M | 779.84M | 1.09B |
| Net Income | 429.89M | 410.35M | 421.36M | 445.05M | 361.57M | 772.02M |
Balance Sheet | ||||||
| Total Assets | 6.31B | 6.23B | 6.21B | 6.08B | 5.95B | 5.94B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.09B | 1.04B | 972.74M | 999.58M | 1.17B |
| Total Debt | 83.42M | 114.45M | 119.28M | 126.62M | 126.91M | 125.38M |
| Total Liabilities | 2.16B | 2.18B | 2.36B | 2.45B | 2.35B | 2.32B |
| Stockholders Equity | 4.15B | 4.05B | 3.85B | 3.63B | 3.60B | 3.62B |
Cash Flow | ||||||
| Free Cash Flow | 716.88M | 490.78M | 622.65M | 608.06M | 276.83M | 771.45M |
| Operating Cash Flow | 691.59M | 593.22M | 738.23M | 785.78M | 568.73M | 1.17B |
| Investing Cash Flow | -218.74M | -112.44M | -254.91M | -195.94M | -213.32M | -563.43M |
| Financing Cash Flow | -305.95M | -464.58M | -355.72M | -598.34M | -501.69M | -458.33M |
Align Tech Technical Analysis
Positive
190.07
Price Trends
179.77
Positive
170.34
Positive
159.10
Positive
Market Momentum
2.58
Negative
62.46
Neutral
87.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGN, the sentiment is Positive. The current price of 190.07 is above the 20-day moving average (MA) of 176.43, above the 50-day MA of 179.77, and above the 200-day MA of 159.10, indicating a bullish trend. The MACD of 2.58 indicates Negative momentum. The RSI at 62.46 is Neutral, neither overbought nor oversold. The STOCH value of 87.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALGN.
Align Tech Risk Analysis
Align Tech disclosed 36 risk factors in its most recent earnings report. Align Tech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Align Tech Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.34B | 21.94 | 12.40% | ― | 16.65% | 425.13% | |
73 Outperform | $12.81B | 27.14 | 10.70% | ― | 2.89% | 8.65% | |
72 Outperform | $13.29B | 22.70 | 11.79% | 2.28% | 6.30% | 52.96% | |
69 Neutral | $1.50B | 25.04 | 17.36% | ― | 19.50% | 15.27% | |
64 Neutral | $16.05B | 18.51 | 5.78% | 1.05% | 9.23% | -14.66% | |
63 Neutral | $8.21B | -78.94 | -26.46% | ― | 36.30% | -42.48% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ALGN
Align Tech
178.91
1.30
0.73%
SNN
Smith & Nephew Snats
31.16
3.42
12.33%
UFPT
Ufp Technologies
194.07
-3.35
-1.70%
ZBH
Zimmer Biomet Holdings
82.90
-6.64
-7.42%
GMED
Globus Medical
91.34
20.84
29.56%
GKOS
Glaukos
140.22
53.36
61.43%
Align Tech Corporate Events
Business Operations and StrategyStock Buyback
Align Tech Announces $200 Million Share Repurchase Plan
Positive
May 1, 2026
On May 1, 2026, Align Technology announced plans to repurchase $200 million of its common stock via open market transactions under a previously authorized $1 billion buyback program. Management framed the move as a signal of confidence in the firm...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Align Tech Updates Bylaws to Enable Shareholder Meetings
Neutral
Feb 26, 2026
On February 24, 2026, Align Technology, Inc.’s Board of Directors approved and implemented Amended and Restated Bylaws that took effect the same day. The changes include a new provision allowing one or more shareholders who have continuously...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.