Align Technology (NASDAQ:ALGN) Shares Gap Up Following Earnings Beat

Align Technology, Inc. (NASDAQ:ALGN)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $161.30, but opened at $176.06. Align Technology shares last traded at $177.03, with a volume of 667,173 shares traded.

The medical equipment provider reported $3.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.99 by $0.30. Align Technology had a return on equity of 13.96% and a net margin of 9.50%.The business had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the firm posted $2.44 EPS. The company’s quarterly revenue was up 5.3% on a year-over-year basis.

Align Technology News Summary

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

• Positive Sentiment: Q4 results beat Wall Street: EPS of $3.29 vs. $2.99 estimate and revenue of ~$1.048B (up ~5.3% YoY); management cited record Invisalign/clear-aligner volumes as the growth driver. ALGN Stock Climbs on Q4 Earnings and Revenue Beat, Margins Down
• Positive Sentiment: Company press release and slide deck confirm Q4 revenue of $1,047.6M and sequential improvement; investors are focused on durable demand for aligners and scanner/software penetration. Business Wire: Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results
• Positive Sentiment: Some sell‑side support persists: William Blair reiterated a Buy rating, citing resilient core markets and DSO-driven growth, which underpins upside potential. Align Technology: Resilient Core Markets, DSO-Driven Growth, and Attractive Valuation Support Buy Rating
• Neutral Sentiment: Morgan Stanley raised its price target to $169 from $154 but kept an “equal weight” rating, a mixed signal (higher PT but no upgrade). Benzinga: Morgan Stanley price target update
• Neutral Sentiment: Management set a modest 2026 revenue growth target of ~3–4% and Q1 revenue guidance roughly in line with consensus (~$1.0B), which suggests steady but unspectacular near-term growth. Seeking Alpha: Align Technology outlines 3%–4% revenue growth target for 2026
• Neutral Sentiment: Options market and premarket coverage show elevated trading interest around the earnings print — indicates higher short‑term volatility and hedging activity. Benzinga: What the Options Market Tells Us About Align Technology
• Negative Sentiment: Gross and operating margins declined in the quarter, which trimmed profitability despite top-line beats — a risk to near-term EPS expansion and valuation multiple. ALGN Stock Climbs on Q4 Earnings and Revenue Beat, Margins Down

Analysts Set New Price Targets

ALGN has been the subject of several research reports. HSBC raised their price objective on shares of Align Technology from $140.00 to $150.00 in a research report on Friday, October 31st. UBS Group reaffirmed a “neutral” rating and issued a $185.00 price objective (up from $175.00) on shares of Align Technology in a report on Thursday. Leerink Partners lifted their target price on Align Technology from $210.00 to $225.00 and gave the stock an “outperform” rating in a report on Thursday. Wall Street Zen raised shares of Align Technology from a “hold” rating to a “buy” rating in a research report on Saturday, January 3rd. Finally, Piper Sandler restated an “overweight” rating and issued a $220.00 price target on shares of Align Technology in a research note on Thursday. Six investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $193.08.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Rothschild Investment LLC boosted its holdings in shares of Align Technology by 140.3% in the 2nd quarter. Rothschild Investment LLC now owns 149 shares of the medical equipment provider’s stock valued at $28,000 after purchasing an additional 87 shares in the last quarter. True Wealth Design LLC lifted its position in shares of Align Technology by 7,650.0% during the 2nd quarter. True Wealth Design LLC now owns 155 shares of the medical equipment provider’s stock worth $29,000 after buying an additional 153 shares during the last quarter. Independence Bank of Kentucky boosted its stake in Align Technology by 77.7% in the fourth quarter. Independence Bank of Kentucky now owns 183 shares of the medical equipment provider’s stock valued at $29,000 after buying an additional 80 shares in the last quarter. Sentry Investment Management LLC grew its position in Align Technology by 73.1% in the third quarter. Sentry Investment Management LLC now owns 187 shares of the medical equipment provider’s stock valued at $25,000 after acquiring an additional 79 shares during the last quarter. Finally, CYBER HORNET ETFs LLC acquired a new position in Align Technology during the second quarter worth about $36,000. 88.43% of the stock is owned by institutional investors.

Align Technology Trading Up 9.4%

The company has a market capitalization of $12.66 billion, a price-to-earnings ratio of 34.19, a P/E/G ratio of 1.76 and a beta of 1.84. The business’s 50 day moving average price is $161.89 and its two-hundred day moving average price is $148.59.

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.