Align Technology, Inc. ALGN is set to release fourth-quarter 2025 results on Feb. 4, after the closing bell.
The company posted adjusted earnings per share (EPS) of $2.61 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 10.1%. Align Technology beat on earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 3.75%.
ALGN’s Q4 Estimates
The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $1.03 billion, which suggests 3.9% growth from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pinned at $2.99 per share, which implies a 22.5% rise from the year-ago recorded actuals.
Estimate Revision Trend Ahead of ALGN’s Q4 Earnings
Estimates for fourth-quarter earnings have remained unchanged at $2.99 per share in the past 60 days.
Here’s a brief overview of the company’s performance leading up to this announcement.
Factors Shaping ALGN’s Q4 Performance
Clear Aligner
The segment is likely to have benefited from higher Clear Aligner volumes, with particular strength across the EMEA, APAC and Latin American regions. Both orthodontists and GP dentist channels may have seen volume growth, driven by growth across adults, teens and kids and continued strength by Dental Service Organizations (DSOs). Align Technology’s third quarter marked a new all-time high for the number of doctors submitting Invisalign case starts for teens and kids, which may have extended into the fourth quarter as well.
From a product standpoint, the company is likely to have had strong contributions from Invisalign First, DSP touch-up cases, Invisalign Palatal Expander, retention, including DSP, as well as continued mix shift from non-comprehensive Clear Aligner products. During the fourth quarter, Align Technology also rolled out the Invisalign System with mandibular advancement featuring occlusal blocks in Thailand and the Philippines. Further, the company’s partnership with Healthcare Finance Direct is likely to have increased Invisalign treatment affordability, leading to higher enrollment among DSOs and doctors, and an incremental lift in the treatment.
Align Technology, Inc. Price and EPS Surprise
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
Over the past few years, Align Technology has introduced a range of new treatment planning tools to enhance consistency, doctor control, speed and treatment planning. The new ClinCheck Live Plan marked a major technical milestone for the Align Digital Platform that can reduce the Invisalign treatment planning cycle from days to minutes. All these developments are expected to have favorably boosted the company’s fourth-quarter top line.
The Zacks Consensus Estimate for Clear Aligner revenues indicates 3.9% year-over-year growth.
Imaging Systems & CAD/CAM Services (Systems and Services)
Within this segment, revenues are likely to have benefited from increased scanner services and exocad CAD/CAM sales. The iTero scanner leases may have witnessed strong growth, from enabling broader access to the company’s advanced digital technology. On a regional basis, scanner sales may have reflected strength across the EMEA and Latin America. With iTero Lumina accounting for more than 90% of Align Technology’s full system units in the third quarter, adoption and utilization are likely to have continued through wand upgrades and installations of new full systems.
In addition, recent product innovations within the iTero Digital Solutions ecosystem are likely to have resonated strongly with customers. Capabilities such as personalized visualization and patient engagement tools at chairside, and expanded compatibility with 3D printers and milling machines may have further simplified workflows, increased patient acceptance and driven practice growth. We expect all these developments to have positively impacted Align Technology’s revenues in the fourth quarter.
Going by the Zacks Consensus Estimate, the segment’s revenues are expected to increase 3.7% on a year-over-year basis.
What Our Quantitative Model Predicts for ALGN
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, this is not the case here, as you can see below:
Earnings ESP: Align Technology has an Earnings ESP of -1.62%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Veracyte VCYT has an Earnings ESP of +7.98% and a Zacks Rank #1. The company is expected to release fourth-quarter 2025 results soon.
VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.12%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS is expected to increase 13.9% from the year-ago quarter figure.
Cardinal Health CAH has an Earnings ESP of +1.73% and a Zacks Rank #2. The company is slated to release second-quarter fiscal 2026 results on Feb. 5.
CAH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 9.36%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS is expected to surge 20.7% from the year-ago reported figure.
Merit Medical Systems MMSI has an Earnings ESP of +2.09% and a Zacks Rank #2. The company is slated to release fourth-quarter 2025 results on Feb. 24.
MMSI’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS is anticipated to increase 3.2% from the year-ago quarter’s figure.
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Align Technology, Inc. (ALGN): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI): Free Stock Analysis Report Veracyte, Inc. (VCYT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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