Align Technology Falls 34% After Missing Earnings Estimates and Issuing Soft Guidance, Joining Confluent, FormFactor, and Other Big Stocks Moving Lower in Thursday Pre-Market Session.

Align Technology's Q2 earnings miss estimates, and shares fall 34.2% in pre-market trading. Other stocks moving lower in pre-market trading include Confluent, FormFactor, and Anheuser-Busch InBev SA/NV.

Align Technology (NASDAQ: ALGN), a leading dental technology company, reported disappointing second-quarter (Q2) earnings on July 31, 2025, which led to a significant drop in its share price. The company's revenue for the quarter was $1.01 billion, a 1.6% year-over-year decrease, missing analyst estimates of $1.06 billion [1]. Earnings per share (EPS) came in at $2.49, falling short of the consensus estimate of $2.57 [1]. These underwhelming results prompted a 34.2% plunge in Align Technology's stock price in pre-market trading.

The company's revenue guidance for the next quarter was also below expectations, with a midpoint of $975 million, compared to analyst estimates of $1.04 billion [1]. Align Technology's adjusted operating margin of 21.3% remained relatively stable but was 7.9% below analyst estimates [1]. The stock traded down to $136.14 immediately after reporting, marking a substantial decline [1].

Analysts have set a one-year average target price of $231.80 for Align Technology, indicating a potential upside of 13.87% from the current trading price. However, the company's disappointing Q2 results have prompted a cautious outlook for the third quarter, with some analysts lowering their price targets. For instance, Stifel reduced its price target to $200 following the disappointing quarterly results [2].

Despite the recent setbacks, some analysts believe that Align Technology's stock may be undervalued. GuruFocus estimates suggest that the stock could be worth $289.16 over the next year, hinting at a potential upside of 42.04% from the current price point [2].

Other stocks moving lower in pre-market trading include Confluent Inc. (NASDAQ: CFLT), which experienced a 27.20% drop in after-hours trading on Thursday, following a significant investment announcement and second-quarter financial report [3]. Confluent's stock value change also coincided with a series of fluctuations in the IT sector, with several IT stocks experiencing significant shifts in the after-hours trading on the same day.

References
[1] https://finance.yahoo.com/news/align-technology-nasdaq-algn-misses-205835360.html
[2] https://www.ainvest.com/news/align-technology-plunges-35-16-disappointing-q2-results-2507/
[3] https://www.inkl.com/news/confluent-stock-drops-27-in-after-hours-trading-here-s-why