Align Technology, Inc. (ALGN) AI Stock Analysis

Align Technology, Inc. designs, manufactures, and distributes advanced dental solutions globally, operating out of Tempe, Arizona. The company serves orthodontists and general practitioner dentists with its flagship Invisalign clear aligner systems, which include comprehensive treatment plans, specialized solutions like Invisalign First Phase I for younger patients, and non-comprehensive packages such as Invisalign Lite and Express. In addition, its Imaging Systems and CAD/CAM Services segment provides the iTero intraoral scanning system for digital dental records, orthodontic diagnostics, and restorative dentistry. Align also offers practice tools such as the Invisalign outcome simulator and TimeLapse technology to monitor patient treatment progress.

From FY2021 to FY2025, Align Technology expanded revenue from $3.95B to $4.03B, achieving a 5-year revenue CAGR of 10.3% from FY2020 to FY2025. Gross margin contracted from 74.3% in FY2021 to 68.3% in FY2025, while operating margin fell from 24.7% to 15.3%. Annual net income dropped from $772.0M in FY2021 to $410.4M in FY2025, although annual EPS rose to $10.52 in FY2025 due in part to share repurchases. For the trailing twelve months ended June 30, 2026, revenue stood at $4.14B with a profit margin of 10.0%. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.3% year-over-year, while quarterly earnings declined 12.1%.

As of June 30, 2026, Align held $1.10B in cash and short-term investments against $120.8M in total debt, yielding net cash of $981.7M and a debt-to-equity ratio of 0.03. Shareholders' equity was $4.23B, with a current ratio of 1.40. In FY2025, operating cash flow generated $593.2M and free cash flow was $490.8M. The company deployed cash toward $102.4M in capital expenditures and $465.9M in share buybacks, helping drive a 9.8% reduction in share count over 5 years.

Align trades at a trailing P/E of 25.6x and a forward P/E of 11.7x, both below the median of its S&P 500 Healthcare peers at 28.9x and 16.6x, respectively. Its enterprise value stands at $9.54B, with an EV-to-EBITDA multiple of 10.5x compared to the peer median of 15.7x, and a price-to-sales ratio of 2.5x versus 3.4x for peers. Over the past year, ALGN returned 13.5%, lagging the S&P 500 (SPY) return of 16.8%. Over a 5-year timeframe, the stock declined 75.0% while the S&P 500 gained 83.0%.

Wall Street sentiment includes 5 Strong Buy, 3 Buy, 7 Hold, and 1 Sell recommendations across 16 analysts covering next fiscal year. The mean price target is $193.79, implying 31.5% upside over the October 16, 2026 close of $147.31. For FY2026 ending December 31, 2026, analysts estimate revenue of $4.15B and EPS of $11.26, reflecting 7.1% earnings growth. Align beat EPS estimates in 3 of the last 4 quarters. The next earnings date is October 28, 2026.

This page is an AI-written research summary of Align Technology, Inc. (ALGN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ALGN income statement, ALGN balance sheet, ALGN key metrics, ALGN analyst forecast, ALGN chart. See the ALGN stock overview for the latest quote and news.