Earnings Preview: What To Expect From Align Technology’s Report

Core Insights - Align Technology, Inc. is a leader in digital orthodontics and restorative dentistry, with a market capitalization of nearly $9.2 billion and a product portfolio that includes Invisalign clear aligners, iTero intraoral scanners, and exocad CAD/CAM software [1] Financial Performance - The company is expected to report a profit of $1.90 per share for Q3 fiscal 2025, representing a 12.4% year-over-year increase from $1.69 per share in the same period last year [3] - Analysts project that EPS for fiscal 2025 will rise by 15.8% year-over-year to $8.12, with an additional 8.1% increase anticipated in fiscal 2026 to $8.78 [5] Recent Challenges - Align Technology faced challenges in Q2 due to uneven patient case conversion, economic uncertainties including U.S. tariff impacts, and less accessible financing for orthodontic treatments, leading to a softer seasonal uptick in case starts [4] - The company has missed Wall Street EPS estimates in three of the past four quarters, only surpassing them once [3] Market Performance - Align Technology's shares have underperformed the broader market, declining 45.9% over the past 52 weeks and 38.3% year-to-date, while the S&P 500 Index gained 17.6% over the past year [6] - Compared to the S&P 500 Healthcare Sector SPDR, which fell 6.4% over the past 52 weeks but gained 4.1% year-to-date, Align's stock performance has been notably weaker [6] Strategic Focus - Management is implementing strategies to cut costs smartly, boost efficiency, and ensure long-term growth as part of their playbook for the second half of 2025 [4]