Want to see ALGN full AI Analyst Report?
Top Page
Align Tech
(NASDAQ:ALGN)
Select Model
Select Model
Rating:75Outperform
Price Target:
$203.00
▲(21.54% Upside)
Action:Reiterated
Date:07/30/26
ALGN scores well primarily on financial strength (very low leverage and strong current cash conversion) and a supportive earnings narrative (record operational metrics and buyback commitment). The score is held back by premium valuation (P/E ~29.4 with no dividend) and near-term profitability/revenue headwinds highlighted in guidance (one-time charges pressuring GAAP margins and weakness in Systems & Services), while technicals appear positive but incomplete due to missing momentum indicators.
Positive Factors
Conservative balance sheet
Extremely low leverage gives Align durable financial flexibility to fund R&D, capex and expanded buybacks without raising external capital. This resilience supports multi-cycle stability, lets management pursue strategic reviews or M&A, and cushions earnings through industry cyclicality.
Negative Factors
Systems & Services revenue decline
A deliberate shift to lower-priced scanners, leasing and rentals reduces upfront revenue recognition and compresses near-term Systems & Services revenue. This structural change may lower reported top-line and short-term margins until recurring service revenue and higher utilization fully offset the loss of upfront hardware sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage gives Align durable financial flexibility to fund R&D, capex and expanded buybacks without raising external capital. This resilience supports multi-cycle stability, lets management pursue strategic reviews or M&A, and cushions earnings through industry cyclicality.
Read all positive factors
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 (ALGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.11B
Dividend YieldN/A
Average Volume (3M)968.72K
Price to Earnings (P/E)29.4
Beta (1Y)1.39
Revenue Growth4.41%
EPS Growth-2.69%
CountryUS
Employees20,290
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)5.76
Shares Outstanding71,618,126
10 Day Avg. Volume763,837
30 Day Avg. Volume968,719
Financial Highlights & Ratios
PEG Ratio51.77
Price to Book (P/B)2.80
Price to Sales (P/S)2.81
P/FCF Ratio23.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$213.44Price Target Upside27.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)11.27
Revenue Forecast (FY)$4.17B
Align Tech Business Overview & Revenue Model
Company Description
Align Technology, Inc. is a medical technology enterprise that develops, produces, and markets its leading products: Invisalign transparent dental aligners and iTero digital intraoral scanners, along with related services. These offerings serve a ...
How the Company Makes Money
Align primarily makes money by selling products and services to dental professionals (orthodontists and general practitioner dentists) and dental laboratories through two main operating segments: Clear Aligner and Systems and Services.
1) Clear A...
Align Tech Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented multiple clear wins — record revenues, record Clear Aligner volumes, non-GAAP margin expansion, strong cash balance and aggressive buybacks, and robust scanner adoption and digital workflow usage. Offsetting these positives are notable near-term headwinds: a double-digit decline in Systems & Services revenue driven by a strategic shift to lower-priced scanner offerings and leases, elevated operating expenses and one-time charges that pressure GAAP margins, a material U.K. VAT liability (~$37.5M), and FX-related margin/EPS impacts. Management framed the scanner mix shift as intentional, emphasizing long-term platform growth even as it depresses near-term reported revenue and upfront profitability. Given the number and magnitude of substantive positive operational and financial metrics and management’s constructive long-term positioning despite identifiable near-term challenges, the overall tone of the call is cautiously optimistic.Positive Updates
Record Revenue and Clear Aligner Volume
Total Q2 2026 revenue of $1,056.2M, up 4.3% year-over-year, driven by record Clear Aligner shipments of 692,000 cases (up 7.4% YoY).
Negative Updates
Systems & Services Revenue Decline
Q2 2026 Systems and Services revenues $185.3M, down 10.8% YoY (reported ~11% decline) due to lower scanner ASPs and a mix shift to lower-priced scanners, leases and rentals that reduce upfront revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Clear Aligner Volume
Total Q2 2026 revenue of $1,056.2M, up 4.3% year-over-year, driven by record Clear Aligner shipments of 692,000 cases (up 7.4% YoY).
Read all positive updates
Company Guidance
Align guided Q3 2026 revenue of $1.00–$1.02 billion, with Clear Aligner volume up mid‑single digits year‑over‑year and ASPs down sequentially (mix and FX driven), Systems & Services revenue down sequentially and year‑over‑year, Q3 GAAP gross margin 67.5%–68.5% (down ~3–4 pts) reflecting $20–30M of one‑time charges (accelerated depreciation, restructuring), Q3 non‑GAAP gross margin ~71%, Q3 GAAP operating margin 13.5%–15% (with $35–50M of one‑time charges) and Q3 non‑GAAP operating margin ~24%. For full‑year 2026, Align still expects revenue growth of ~3%–4% YoY, Clear Aligner volume ~+6% YoY, Clear Aligner ASPs flat to slightly down, Systems & Services revenue down ~6%–8% YoY, iTero shipments up double digits, GAAP gross margin ~70.2%–70.5% (including $30–40M of one‑time items) and non‑GAAP gross margin +~100 bps, GAAP operating margin ~15.1%–15.6% (including ~$90–100M of one‑time items) and non‑GAAP operating margin ~23% (≈+100 bps YoY), CapEx $125–150M, and an expanded share repurchase plan of $400–500M for 2026 (inclusive of the ~$133M expected through October); management also targets at least another ~100 bps of GAAP and non‑GAAP operating margin improvement in fiscal 2027 (preliminary, pending the strategic/operating review).Align Tech Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.14B | 4.03B | 4.00B | 3.86B | 3.73B | 3.95B |
| Gross Profit | 2.75B | 2.76B | 2.80B | 2.71B | 2.63B | 2.94B |
| EBITDA | 786.32M | 765.87M | 816.80M | 799.05M | 779.84M | 1.12B |
| Net Income | 413.58M | 410.35M | 421.36M | 445.05M | 361.57M | 772.02M |
Balance Sheet | ||||||
| Total Assets | 6.42M | 6.23B | 6.21B | 6.08B | 5.95B | 5.94B |
| Cash, Cash Equivalents and Short-Term Investments | 1.10M | 1.09B | 1.04B | 972.74M | 999.58M | 1.17B |
| Total Debt | 120.84K | 114.45M | 119.28M | 126.62M | 126.91M | 125.38M |
| Total Liabilities | 2.19M | 2.18B | 2.36B | 2.45B | 2.35B | 2.32B |
| Stockholders Equity | 4.23M | 4.05B | 3.85B | 3.63B | 3.60B | 3.62B |
Cash Flow | ||||||
| Free Cash Flow | 755.70M | 490.78M | 622.65M | 608.06M | 276.83M | 771.45M |
| Operating Cash Flow | 755.70M | 593.22M | 738.23M | 785.78M | 568.73M | 1.17B |
| Investing Cash Flow | -269.41M | -112.44M | -254.91M | -195.94M | -213.32M | -563.43M |
| Financing Cash Flow | -277.10M | -464.58M | -355.72M | -598.34M | -501.69M | -458.33M |
Align Tech Technical Analysis
Negative
167.02
Price Trends
174.48
Negative
174.35
Negative
167.56
Positive
Market Momentum
-1.06
Positive
44.80
Neutral
32.96
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 167.02 is below the 20-day moving average (MA) of 174.58, below the 50-day MA of 174.48, and below the 200-day MA of 167.56, indicating a neutral trend. The MACD of -1.06 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 32.96 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 37 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 | $1.97B | 28.63 | 16.72% | ― | 11.19% | 7.61% | |
80 Outperform | $10.69B | 18.11 | 13.04% | ― | 23.49% | 219.12% | |
75 Outperform | $12.11B | 29.37 | 10.09% | ― | 4.41% | -2.69% | |
74 Outperform | $18.17B | 24.27 | 6.11% | 1.05% | 9.23% | -14.66% | |
71 Outperform | $13.10B | 21.11 | 12.25% | 2.56% | 6.30% | 52.96% | |
61 Neutral | $9.83B | -51.30 | -27.07% | ― | 41.55% | -96.75% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ALGN
Align Tech
169.08
30.31
21.84%
SNN
Smith & Nephew Snats
29.69
-5.59
-15.84%
UFPT
Ufp Technologies
311.87
105.65
51.23%
ZBH
Zimmer Biomet Holdings
97.19
-0.22
-0.22%
GMED
Globus Medical
81.08
27.01
49.95%
GKOS
Glaukos
170.99
82.99
94.31%
Align Tech Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock Buyback
Align Tech boosts governance and capital allocation strategy
Positive
Jul 29, 2026
On July 29, 2026, Align Technology announced a series of governance and capital allocation initiatives aimed at reinforcing long-term growth and shareholder value. Following constructive discussions with Elliott Investment Management, the company ...
Business Operations and StrategyExecutive/Board Changes
Align Tech Chief Legal Officer Announces Upcoming Resignation
Neutral
Jul 9, 2026
On July 6, 2026, Align Technology, Inc. announced that Executive Vice President and Chief Legal and Regulatory Officer Julie Coletti resigned from the company in order to join Illumina, Inc. as Chief Legal Officer. Her resignation, effective Augus...
Executive/Board ChangesShareholder Meetings
Align Tech Shareholders Reaffirm Board and Governance Structure
Positive
May 20, 2026
On May 20, 2026, Align Technology, Inc. held its 2026 Annual Meeting of Stockholders, where shareholders elected ten director nominees to serve one-year terms, with all receiving substantial support despite some opposition votes. The meeting outco...
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...
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.