DailyIQ
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Sector:HealthcareAll sectors
Last updated 5 minutes ago

ALGN·Align Technology, Inc.

$.
-. (-.%)
After Hours
High
$171.00
Open
$168.29
Market Cap
12.01B
52W High
$208.31
Low
$166.39
P. Close
$167.77
P/E
27.94
52W Low
$122.00
Fwd P/E
13.56
DailyIQ Est.
$227.01
Technical Score (1D)
27
SELL
News Sentiment
50
MIXED
Align Technology’s shares are trading above the analyst‑derived fair value of roughly $155, sparking a debate over possible overvaluation. The recent slide in share price, coupled with a 1‑year total shareholder return that fell 7.1% despite a 7.5% year‑to‑date gain, signals a slowdown in momentum that could prompt investors to reassess the company’s growth prospects. Revenue of $4.10 billion and net income of $429.9 million confirm the firm’s robust financial base, but the lack of clarity on how AI‑driven initiatives will translate into future earnings leaves room for uncertainty. Analysts are weighing the company’s strong dental technology pipeline against the risk that current valuation may not reflect the pace of AI adoption, which could influence short‑term pricing dynamics. Over the next 1–10 trading days, the market may react to any forward guidance that clarifies the expected contribution of AI tools to revenue growth. A potential revision of the fair‑value estimate by rating agencies could either reinforce the overvaluation narrative or provide a more realistic target for the stock. The company’s upcoming earnings call will be a key touchpoint for investors to gauge whether the AI strategy is on track to deliver incremental margins. Market participants should also monitor any regulatory developments that could affect the adoption of AI‑enabled dental devices, as such changes could alter the company’s competitive positioning. Finally, any shift in the broader dental technology sector’s valuation multiples will likely influence how the market interprets Align’s relative price premium.
Earnings Summary
Align Technology is a global medical‑device firm that specializes in digital dentistry, offering the Invisalign clear‑aligner system, Vivera retainers, and iTero intraoral scanners that enable precise digital impressions for orthodontic and restorative procedures. Operating within the healthcare sector’s medical instruments and supplies industry, the company has built a leading position in the orthodontic market by combining hardware, software, and cloud‑based treatment planning. In recent quarters, Align’s revenue has hovered around the $1 billion mark, moving from $995.2 million in Q4 2024 to $979.3 million in Q1 2025, then rising to $1.012 billion in Q2 2025, falling slightly to $995.7 million in Q3 2025, climbing to $1.047 billion in Q4 2025, and settling at $1.040 billion in Q1 2026; earnings per share have remained positive, with a $2.44 EPS in Q4 2024 that matched the $2.45 estimate, a $2.13 EPS in Q1 2025 that beat the $1.99 forecast, a $2.49 EPS in Q2 2025 that missed the $2.57 estimate, a $2.61 EPS in Q3 2025 that beat the $2.41 estimate, a $3.29 EPS in Q4 2025 that exceeded the $3.03 estimate, and a $2.58 EPS in Q1 2026 that outpaced the $2.33 estimate. Over the past year, revenue has grown roughly 5.8% YoY from Q4 2024 to Q4 2025, while EPS has risen about 34% from $2.44 to $3.29, underscoring a trend of improving profitability despite modest revenue swings. Recent news highlights a strategic pivot to a comprehensive digital‑dentistry platform that expands beyond Invisalign to include AI‑driven treatment planning, consumer engagement, and virtual care services; the company also announced new Invisalign solutions, financing initiatives, and a $200 million investment in a Hyderabad manufacturing facility slated for 2027, all of which could broaden its addressable market and enhance margins. Investors should watch the next earnings release for guidance on the uptake of the new workflow, monitor any regulatory or reimbursement updates that could affect AI‑driven planning, and track the progress of international expansion and the Hyderabad plant, as these factors will shape the company’s near‑term growth trajectory.

EPS

EstBeatMiss
$1.79$2.22$2.64$3.06$3.49Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.60 - -
Q1'26$2.33$2.58+11.0%
Q4'25$3.03$3.29+8.5%
Q3'25$2.41$2.61+8.4%
Q2'25$2.57$2.49-3.3%
Q1'25$1.99$2.13+7.1%

Revenue

EstBeatMiss
$964M$997M$1.0B$1.1B$1.1BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.1B - -
Q1'26$1.0B$1.0B-0.2%
Q4'25$1.1B$1.0B-0.6%
Q3'25 - $996M -
Q2'25 - $1.0B -
Q1'25 - $979M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

ALGN Stock Snapshot

ALGN is currently trading at $167.74, giving Align Technology, Inc. a market cap of 12.01B and a P/E ratio of 27.9. Today's range spans $166.39–$171.00, with shares opening at $168.29 and moving down $0.03 (0.0%) from the prior close. DailyIQ's technical score sits at 27/100 (SELL) with a news sentiment reading of 50/100.

Over the past year ALGN has traded between $122.00 and $208.31 - the current price is +37.5% off the 52-week low and -19.5% from the high. 25 analysts cover the stock with a Buy consensus and a mean 12-month target of $209.07 (range $175.00–$240.00), implying upside of +24.6%.

The path of least resistance for Align Technology, Inc. (ALGN) is currently lower - 27/100 (SELL), neutral sentiment (50/100), price $167.74 (in the middle of its 52-week range within $122.00–$208.31). The current P/E ratio stands at 27.9. At 12.01B in Healthcare market cap, this large-cap name is in the zone where portfolio risk managers - not just traders - are making decisions. Trimming positions on technical deterioration is standard practice at this size, and the current setup gives them a clear rationale to act.

Analyst coverage for ALGN becomes a double-edged factor in a SELL phase: at 12.01B in Healthcare market cap, active coverage is high enough that downgrade risk is real and impactful. The 27/100 technical reading and neutral sentiment (50/100) at $167.74 (in the middle of its 52-week range) place the stock in the zone where one or two high-profile estimate cuts can convert a grinding decline into a sharper re-rating — the $122.00–$208.31 range establishes where that repricing lands.