Align Technology (NASDAQ:ALGN) Shares Gap Up After Strong Earnings

Align Technology, Inc. (NASDAQ:ALGN)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. 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 trading hands.

The medical equipment provider reported $3.29 EPS for the quarter, topping 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 for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the business posted $2.44 EPS. The firm’s revenue was up 5.3% compared to the same quarter last year.

Trending Headlines about Align Technology

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

Several equities research analysts have recently issued reports on the stock. Leerink Partners increased their price objective on shares of Align Technology from $210.00 to $225.00 and gave the stock an “outperform” rating in a research report on Thursday. Evercore ISI upped their target price on shares of Align Technology from $180.00 to $200.00 and gave the stock an “outperform” rating in a research note on Thursday. HSBC lifted their price target on Align Technology from $140.00 to $150.00 in a research note on Friday, October 31st. Needham & Company LLC reaffirmed a “hold” rating on shares of Align Technology in a research report on Thursday, October 30th. Finally, Weiss Ratings upgraded Align Technology from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, January 16th. Six equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat, Align Technology has an average rating of “Hold” and an average price target of $193.08.

Hedge Funds Weigh In On Align Technology

Institutional investors have recently added to or reduced their stakes in the company. Thrivent Financial for Lutherans lifted its stake in Align Technology by 306.1% in the fourth quarter. Thrivent Financial for Lutherans now owns 12,909 shares of the medical equipment provider’s stock valued at $2,016,000 after acquiring an additional 9,730 shares during the last quarter. Pinnacle Associates Ltd. bought a new stake in shares of Align Technology in the 4th quarter valued at about $220,000. Allworth Financial LP lifted its stake in Align Technology by 20.4% in the 4th quarter. Allworth Financial LP now owns 3,460 shares of the medical equipment provider’s stock valued at $540,000 after purchasing an additional 586 shares during the last quarter. Knuff & Co LLC bought a new position in Align Technology during the fourth quarter worth about $125,000. Finally, Summit Wealth Group LLC Co. increased its position in Align Technology by 36.5% during the fourth quarter. Summit Wealth Group LLC Co. now owns 1,624 shares of the medical equipment provider’s stock worth $254,000 after buying an additional 434 shares during the last quarter. 88.43% of the stock is currently owned by institutional investors and hedge funds.

Align Technology Stock Up 9.4%

The stock has a market cap of $12.66 billion, a P/E ratio of 34.19, a price-to-earnings-growth ratio of 1.76 and a beta of 1.84. The firm has a 50 day simple moving average of $161.89 and a 200-day simple moving average of $148.59.

About Align Technology

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.