Align Technology Beats Q4 Earnings Expectations, Stock Rises
Align Technology Inc (NASDAQ:ALGN) reported financial results for the fourth quarter and full fiscal year 2025 that surpassed analyst expectations on the bottom line, driving a positive reaction in its share price. The maker of the Invisalign clear aligner system posted record quarterly revenue and case volume, signaling resilient demand for its dental technology products despite a challenging macroeconomic backdrop.
Quarterly Performance vs. Estimates
The company's fourth-quarter results presented a mixed picture relative to Wall Street forecasts. Revenue came in slightly below the consensus estimate, while adjusted earnings per share demonstrated a clear beat.
- Q4 2025 Revenue: $1.05 billion, representing a 5.3% year-over-year increase.
- Analyst Revenue Estimate: $1.05 billion. The reported figure was marginally below this expectation.
- Q4 2025 Non-GAAP EPS: $3.29 per diluted share.
- Analyst EPS Estimate: $3.03 per share. Align's earnings exceeded estimates by approximately 8.6%.
The core Clear Aligner segment showed strength, with revenue of $838.1 million, up 5.5% year-over-year. Volume growth was particularly robust, with a record 676.9 thousand cases shipped, an increase of 7.7% compared to Q4 2024. The company highlighted strong growth in the EMEA, Latin America, and APAC regions.
Market Reaction and Forward Outlook
Following the earnings release, Align's stock moved higher in after-market trading, reflecting investor approval of the earnings beat and the company's forward guidance. The positive price action suggests the market is focusing on profitability and the company's operational execution.
Management provided an outlook for the upcoming first quarter of 2026 and the full fiscal year. For Q1, the company expects revenue between $1.01 billion and $1.03 billion, which aligns closely with the current analyst consensus estimate of approximately $1.04 billion. For the full 2026 fiscal year, Align anticipates revenue growth of 3% to 4% year-over-year.
- Company's FY 2026 Revenue Outlook: Implies a range of approximately $4.16 billion to $4.19 billion.
- Analyst FY 2026 Revenue Estimate: $4.25 billion.
The company's revenue guidance for the full year appears slightly more conservative than the current analyst consensus. However, the market's initial reaction indicates that investors may be encouraged by the company's expectation for improved operating margins and continued volume growth.
Full-Year 2025 Summary and Strategic Highlights
For the full fiscal year 2025, Align Technology reported total revenue of $4.0 billion, a modest 0.9% increase over 2024. Clear Aligner volume reached a record 2.6 million cases, up 4.7% year-over-year, although revenue in the segment was nearly flat. On a non-GAAP basis, full-year net income was $763.0 million, or $10.51 per diluted share, representing growth over the prior year.
Key announcements from the quarter included:
- The launch of the Invisalign system with mandibular advancement in new markets like Thailand and the Philippines.
- A collaboration with the University of Bern for a Swiss oral health study utilizing Align's iTero Lumina scanner.
- Continued share repurchases, with $465.9 million used to buy back 2.9 million shares during 2025.
In a statement, CEO Joe Hogan pointed to "better than expected revenues and Clear Aligner volumes" and expressed cautious optimism for 2026, citing progress across regions and customer segments.
For a detailed look at upcoming earnings dates and analyst estimate revisions, readers can review the earnings and estimates page for ALGN.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
