A month has gone by since the last earnings report for Align Technology (ALGN) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Align Technology due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.ALGN Q3 Earnings and Revenue Beat, Margins Cras ...

Core Insights - Align Technology, Inc. (ALGN) reported third-quarter 2025 adjusted earnings per share (EPS) of $2.61, an increase of 11.1% year-over-year, exceeding the Zacks Consensus Estimate by 10.1% [1] - The company's total revenues for the quarter reached $995.7 million, reflecting a year-over-year growth of 1.8% and surpassing the Zacks Consensus Estimate by 2.5% [2] Revenue Breakdown - The Clear Aligner segment generated revenues of $805.8 million, up 2.4% year-over-year, benefiting from a favorable foreign exchange impact of 1.6% [3] - Revenues from Imaging Systems & CAD/CAM Services decreased by 0.6% to $189.9 million, also experiencing a favorable currency impact of 1.4% [3] Margin Analysis - Gross profit for the quarter was $639.2 million, down 6.2% year-over-year, with gross margin contracting by 552 basis points to 64.2% due to a 20.4% increase in the cost of net revenues [4] - Operating income fell to $128.1 million, a decline of 21.1% year-over-year, with the operating margin contracting by 374 basis points to 12.9% [4] Financial Position - At the end of the third quarter, the company had cash and cash equivalents of $1.00 billion, an increase from $901.2 million at the end of the second quarter [5] - Cumulative net cash provided by operating activities was $370 million, down from $452.1 million at the end of the third quarter of 2024 [5] Stock Repurchase Activity - During the reported quarter, ALGN repurchased approximately 0.5 million shares at an average price of $136.77 per share, following a $200.0 million open market repurchase plan announced on August 5, 2025 [6][7] Future Outlook - For the full year 2025, ALGN expects Clear Aligner revenue growth to be flat to slightly up from 2024, with the Zacks Consensus Estimate for 2025 revenues at $4.01 billion, indicating a 0.2% year-over-year growth [8] - The company anticipates fourth-quarter revenues to be in the range of $1.03 billion to $1.05 billion, with the Zacks Consensus Estimate at $1.04 billion [9] Market Performance - Following the earnings announcement, ALGN's stock rose by 15.1% in after-market trading [2] - The company reported growth in Clear Aligner volume across APAC, EMEA, and Latin American regions, driven by increased utilization among orthodontists and general practitioners [11]