Align Tech (ALGN)
NASDAQ:ALGN
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Align Tech
(NASDAQ:ALGN)
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Rating:76Outperform
Price Target:
$200.00
▲(20.21% Upside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by strong financial quality (notably the low-leverage balance sheet and solid margins) and a generally positive earnings outlook with expected margin improvement. Technicals are supportive but somewhat overextended, while valuation remains a headwind due to a high P/E.
Positive Factors
Conservative balance sheet
Very low leverage and a large equity base provide durable financial flexibility: supports R&D, capex for production changes, share repurchases, and cushions downturns. This conservatism lowers solvency risk and preserves the company’s ability to execute multi-year strategic shifts without liquidity stress.
Negative Factors
GAAP margin and ASP pressure
Material GAAP gross margin compression and falling average selling prices indicate competitive/discounting and adverse mix or FX effects. If structural, these trends erode return on invested capital and limit scope for reinvestment or margin expansion, requiring either cost cuts or higher volumes to restore profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a large equity base provide durable financial flexibility: supports R&D, capex for production changes, share repurchases, and cushions downturns. This conservatism lowers solvency risk and preserves the company’s ability to execute multi-year strategic shifts without liquidity stress.
Read all positive factors
Align Tech (ALGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.86B
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)27.6
Beta (1Y)1.34
Revenue Growth0.56%
EPS Growth-12.05%
CountryUS
Employees21,200
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.29
Shares Outstanding71,282,135
10 Day Avg. Volume1,467,942
30 Day Avg. Volume1,294,374
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 Cap0.93
Enterprise Value/Revenue2.72
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda13.57
Forecast
1Y Price Target
$201.70Price Target Upside21.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)11.31
Revenue Forecast (FY)$4.19B
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
Total Invisalign Cases Shipped Worldwide
Tracks the number of Invisalign cases shipped globally, reflecting market demand and the company's reach in the orthodontic market.
Tracks the number of Invisalign cases shipped globally, reflecting market demand and the company's reach in the orthodontic market.
Data provided by:
The Fly
The FlyAlign Tech Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial position: record quarterly and annual revenues, record clear aligner volumes, strong DSO momentum, improved profitability (non-GAAP), and constructive 2026 guidance. Notable challenges include YoY GAAP gross margin pressure, ASP declines, North America retail softness, China procurement uncertainty, and early margin dilution from direct fabrication. On balance, the company reported more significant and material positive developments than negatives and reiterated disciplined execution and cautious optimism for 2026.Positive Updates
Record Quarterly and Annual Revenues
Q4 revenues reached a record $1,048,000,000, up 5.3% year-over-year and 5.2% sequentially; fiscal 2025 revenues were a record $4,000,000,000, up 1.0% year-over-year.
Negative Updates
Year-Over-Year Gross Margin Pressure (GAAP)
GAAP gross margin declined 4.8 percentage points year-over-year (Q4 overall gross margin 65.3%), driven primarily by higher depreciation expense on assets disposed of other than by sale and lower ASPs.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenues
Q4 revenues reached a record $1,048,000,000, up 5.3% year-over-year and 5.2% sequentially; fiscal 2025 revenues were a record $4,000,000,000, up 1.0% year-over-year.
Read all positive updates
Company Guidance
Align provided Q1 2026 guidance for worldwide revenues of $1.01B–$1.03B (up ~3%–5% year‑over‑year), with clear aligner volume expected to rise mid single‑digits and average selling price up sequentially from favorable geographic mix, while Systems & Services revenue is expected to decline seasonally; Q1 GAAP operating margin is guided to 12.4%–12.8% and Q1 non‑GAAP operating margin to ~19.5%. For full‑year FY2026 the company expects revenue growth of 3%–4%, clear aligner volume growth up mid single‑digits, GAAP operating margin slightly below 18% (about a 400‑basis‑point improvement vs. 2025), non‑GAAP operating margin of ~23.7% (≈100 bps improvement), and capital expenditures of $125M–$150M; the outlook assumes no material adverse changes from foreign exchange, macroeconomic conditions or duties/tariffs and does not assume any impact from China VBP.Align Tech Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.03B | 4.00B | 3.86B | 3.73B | 3.95B |
| Gross Profit | 2.76B | 2.80B | 2.71B | 2.63B | 2.94B |
| EBITDA | 765.87M | 816.80M | 799.05M | 779.84M | 1.09B |
| Net Income | 410.35M | 421.36M | 445.05M | 361.57M | 772.02M |
Balance Sheet | |||||
| Total Assets | 6.23B | 6.21B | 6.08B | 5.95B | 5.94B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.04B | 972.74M | 999.58M | 1.17B |
| Total Debt | 114.45M | 119.28M | 126.62M | 126.91M | 125.38M |
| Total Liabilities | 2.18B | 2.36B | 2.45B | 2.35B | 2.32B |
| Stockholders Equity | 4.05B | 3.85B | 3.63B | 3.60B | 3.62B |
Cash Flow | |||||
| Free Cash Flow | 490.78M | 622.65M | 608.06M | 276.83M | 771.45M |
| Operating Cash Flow | 593.22M | 738.23M | 785.78M | 568.73M | 1.17B |
| Investing Cash Flow | -112.44M | -254.91M | -195.94M | -213.32M | -563.43M |
| Financing Cash Flow | -464.58M | -355.72M | -598.34M | -501.69M | -458.33M |
Align Tech Technical Analysis
Negative
166.38
Price Trends
176.84
Negative
164.75
Positive
159.65
Positive
Market Momentum
-1.06
Positive
41.16
Neutral
55.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGN, the sentiment is Negative. The current price of 166.38 is below the 20-day moving average (MA) of 175.27, below the 50-day MA of 176.84, and above the 200-day MA of 159.65, indicating a neutral trend. The MACD of -1.06 indicates Positive momentum. The RSI at 41.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $11.31B | 21.94 | 12.40% | ― | 11.75% | 364.73% | |
76 Outperform | $11.86B | 27.60 | 10.45% | ― | 0.56% | -12.05% | |
72 Outperform | $13.50B | 22.70 | 11.79% | 2.28% | 5.78% | 61.52% | |
69 Neutral | $1.46B | 25.04 | 17.36% | ― | 29.47% | 23.24% | |
65 Neutral | $17.33B | 25.25 | 5.60% | 1.05% | 5.47% | -23.03% | |
59 Neutral | $5.99B | -34.40 | -25.41% | ― | 30.38% | 47.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ALGN
Align Tech
166.38
7.52
4.73%
SNN
Smith & Nephew Snats
31.64
3.90
14.06%
UFPT
Ufp Technologies
189.45
-12.26
-6.08%
ZBH
Zimmer Biomet Holdings
88.57
-23.74
-21.14%
GMED
Globus Medical
83.78
10.58
14.45%
GKOS
Glaukos
103.18
4.76
4.84%
Align Tech Corporate Events
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.