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

Align Technology, Inc. (NASDAQ:ALGN)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. 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.

The medical equipment provider reported $3.29 earnings per share for the quarter, beating analysts’ consensus estimates of $2.99 by $0.30. The company had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $1.03 billion. Align Technology had a return on equity of 15.16% and a net margin of 10.17%.Align Technology’s quarterly revenue was up 5.3% on a year-over-year basis. During the same period last year, the firm earned $2.44 earnings per share.

Trending Headlines about Align Technology

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

Please show the positive items first, then the neutral items, and finally the negative items.
• Positive Sentiment: Q4 results beat consensus — EPS $3.29 vs $2.99 est and revenue $1.05B vs $1.03B; management highlighted strong demand for clear aligners which drove record Invisalign volumes, a primary driver of the stock rally. Align Technology beats fourth-quarter results estimates on dental products demand
• Positive Sentiment: Major analyst price-target increases from Leerink (to $225) and Mizuho (to $215) boost upside perception and reflect analyst model upgrades after the quarter. Leerink Partners adjusts Align Technology PT to $225 Mizuho adjusts price target on Align Technology to $215
• Positive Sentiment: CEO Joseph Hogan framed the macro/demand backdrop as more stable and cited rising teen and international demand — supportive commentary for forward growth expectations. The markets are ‘more stable than what we experienced in the past,’ says Align Technology CEO
• Neutral Sentiment: Company set a modest 2026 revenue growth target of 3%–4% and issued Q1 revenue guidance roughly in line with Street estimates — suggests steady but not accelerating top-line growth. Align Technology outlines 3-percent–4-percent revenue growth target for 2026
• Neutral Sentiment: Analyst ratings are mixed: Jefferies raised its PT to $185 but kept a “hold,” and Morgan Stanley moved its PT to $169 with an “equal weight” stance — shows divergence in conviction despite upgrades. Jefferies co adjusts Align Technology price target to $185 Morgan Stanley raises price target
• Negative Sentiment: Margins declined in the quarter — gross and operating margins fell despite the volume beat, a profitability headwind that could limit multiple expansion if trends persist. ALGN Stock Climbs on Q4 Earnings and Revenue Beat, Margins Down

Analysts Set New Price Targets

Several equities analysts have commented on the stock. HSBC increased their price target on shares of Align Technology from $140.00 to $150.00 in a research note on Friday, October 31st. Piper Sandler increased their target price on shares of Align Technology from $200.00 to $220.00 and gave the company an “overweight” rating in a research report on Thursday. Wall Street Zen upgraded shares of Align Technology from a “hold” rating to a “buy” rating in a research note on Saturday, January 3rd. Wells Fargo & Company upped their price objective on shares of Align Technology from $181.00 to $200.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, UBS Group raised their price objective on Align Technology from $175.00 to $185.00 and gave the stock a “neutral” rating in a report on Thursday. Six equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $195.58.

Institutional Trading of Align Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALGN. Sentry Investment Management LLC grew its stake in shares of Align Technology by 73.1% in the 3rd quarter. Sentry Investment Management LLC now owns 187 shares of the medical equipment provider’s stock valued at $25,000 after purchasing an additional 79 shares during the last quarter. Steigerwald Gordon & Koch Inc. purchased a new position in Align Technology in the 3rd quarter valued at $26,000. Rothschild Investment LLC increased its stake in 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 buying an additional 87 shares during the period. True Wealth Design LLC raised its position in 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. Finally, Independence Bank of Kentucky lifted its stake in shares of Align Technology by 77.7% in the 4th quarter. Independence Bank of Kentucky now owns 183 shares of the medical equipment provider’s stock worth $29,000 after acquiring an additional 80 shares during the period. 88.43% of the stock is owned by hedge funds and other institutional investors.

Align Technology Stock Up 6.8%

The company’s fifty day moving average price is $163.26 and its two-hundred day moving average price is $148.77. The firm has a market cap of $13.46 billion, a PE ratio of 33.14, a P/E/G ratio of 1.97 and a beta of 1.84.

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.