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Align Technology, Inc. ALGN delivered fourth-quarter 2025 adjusted earnings per share (EPS) of $3.29, up 34.8% from the year-ago level. The bottom line surpassed the Zacks Consensus Estimate by 10.1%.
GAAP EPS for the quarter was $1.89, up 35.9% year over year.
Full-year adjusted EPS was $10.51, reflecting a 12.6% increase from the 2024 level. The figure surpassed the Zacks Consensus Estimate by 2.8%
The top line increased 5.3% year over year to $1.05 billion and beat the Zacks Consensus Estimate by 1.33%. Foreign exchange favorably impacted total revenues by approximately 1.4% year over year.
Full-year revenues totaled $4.03 billion, up 0.9% from the 2024 level. The figure topped the Zacks Consensus Estimate by 0.2%.
Following the earnings announcement yesterday, ALGN stock rose nearly 13% in after-hours trading.
The company has two reportable segments — Clear Aligner, and Imaging Systems and CAD/CAM Services (Systems and Services).
Revenues in the Clear Aligner segment were up 5.5% year over year to $838.1 million. This was supported by a record Clear Alignervolume of 676.9 thousand cases, which were 7.7% higher than the year-ago period. Revenues also experienced a 1.5% year-over-year favorable foreign exchange impact.
Align Technology, Inc. price-consensus-eps-surprise-chart | Align Technology, Inc. Quote
Imaging Systems & CAD/CAM Services revenues increased 4.2% to $209.4 million in the reported quarter, driven by higher volumes across all regions, and continued adoption of the iTero lumina scanner. The segment, too, witnessed a favorable currency impact of 1.2% year over year.
Gross profit in the fourth quarter was $683.6 million, down 1.9% year over year. The gross margin contracted 477 basis points (bps) year over year to 65.3% due to a 22% increase in the cost of net revenues.
SG&A expenses rose 3.9% to $441.7 million, while R&D expenses fell 12.5% to $83 million.
Operating income totaled $158.9 million, down 10.3% year over year. The operating margin contracted 263 bps to 15.2%.
The company exited the fourth quarter with cash and cash equivalents of $1.09 billion compared with $1.04 billion at the end of 2024.
Cumulative net cash provided by operating activities was $593.2 million compared with $738.2 million at the end of 2024.
During the reported quarter, the company repurchased approximately 0.7 million shares of common stock at an average price of $142.87 per share. These repurchases were made following the $200.0 million open market repurchase plan announced on Aug. 5, 2025 and were completed in January 2026.
As of Dec. 31, 2025, $831.2 million remains available for repurchases of common stock under the $1.0 billion stock repurchase program, announced in April 2025.
Align Technology issued guidance for full-year 2026, assuming no external factors beyond its control, including FX, macroeconomic conditions and changes to current tariffs or duties.
The company expects worldwide revenue growth to be up 3%-4% year over year. 2026 Clear Aligner volume growth is projected to increase in the mid-single digits year over year. The Zacks Consensus Estimate for the company’s revenues is pegged at $4.18 billion, suggesting 3.8% growth year over year.
Non-GAAP operating margin is expected to improve 100 bps year over year to approximately 23.7%. CapEx investment is forecasted between $125 million and $150 million.
For the first quarter, ALGN anticipates worldwide revenues to be in the range of $1.010 billion-$1.030 billion, up 3%-5% year over year. The Zacks Consensus Estimate for the metric stands at $1.02 billion, calling for a 3.9% increase.
Align Technology exited the fourth quarter of 2025 with better-than-expected earnings and revenues. The record Clear Aligner volume growth reflects strength from adult and teens and growing kid patients, as well as growth in both the GP and Ortho channels. The company reached a major Invisalign milestone in the quarter by surpassing 1 million patients treated with Invisalign in Latin America. From a product standpoint, Invisalign First, the Invisalign pallet expander, and MAOB, mandibular advancement with occlusal blocks, continued to drive year-over-year growth across all regions. However, contraction of both margins is discouraging.
During the quarter, the company launched the InvisalignSystem with mandibular advancement in the Philippines and Thailand. The system features occlusal blocks designed to correct Class II skeletal and dental issues by advancing the mandible while aligning teeth. Align Technology also continued piloting Exocad ART (advanced restorative treatment) in several European markets, with a broader rollout plan for this year.
Align Technology currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Resmed RMD and Globus Medical GMED.
Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.
Resmed, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.81, exceeding the Zacks Consensus Estimate by 4.59%. Revenues of $1.42 billion topped the Zacks Consensus Estimate by 2.30%.
RMD has an earnings yield of 4.25% compared with the industry’s 2.6% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 2.74%.
Globus Medical, carrying a Zacks Rank #2 at present, posted a third-quarter 2025 adjusted EPS of $1.18, exceeding the Zacks Consensus Estimate by 49.37%. Revenues of $769.1 million topped the Zacks Consensus Estimate by 4.85%.
GMED has an estimated long-term earnings growth rate of 15.8% compared with the industry’s 12.7% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 16.24%.
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This article originally published on Zacks Investment Research (zacks.com).
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