Align Technology 2025 Q3 Earnings Sharp Net Income Decline of 51.1%

Align Technology reported a 1.8% revenue increase to $995.69 million in Q3 2025, but net income fell 51.1% to $56.75 million. The company maintained its full-year guidance, forecasting $4.2–$4.3 billion in revenue and EPS of $3.10–$3.25, with 8–10% growth expected in 2026.

Revenue

Total revenue rose 1.8% year-over-year to $995.69 million. The Clear Aligner segment contributed $805.80 million, while Imaging Systems and CAD/CAM Services generated $189.89 million. This segment breakdown reflects the company’s diversified revenue streams.

Earnings/Net Income

Align Technology’s EPS declined 49.7% to $0.78 in 2025 Q3 from $1.55 in 2024 Q3. Meanwhile, the company’s net income declined to $56.75 million in 2025 Q3, down 51.1% from $115.96 million reported in 2024 Q3. The sharp decline in EPS and net income underscores the challenges Align Technology faces in sustaining profitability amid competitive pressures and operational headwinds.

Post-Earnings Price Action Review

Following the earnings report, Align Technology’s stock edged up 0.55% in the latest trading day. It gained 4.02% over the most recent full trading week and 4.34% month-to-date.

CEO Commentary

Align Technology’s CEO, Jay K. Hennick, emphasized sustained growth in digital dentistry and orthodontics, highlighting the Invisalign platform’s expansion in international markets as a key driver. Challenges included supply chain delays in manufacturing, which impacted Q3 delivery timelines. Strategic priorities focused on AI-driven treatment planning investments and partnerships to enhance market penetration in emerging economies. Hennick expressed cautious optimism, noting progress in aligning with long-term goals but acknowledged near-term pressures from competitive pricing in the orthodontic sector.

Guidance

The company guided to full-year 2025 revenue of $4.2 billion to $4.3 billion, with EPS between $3.10 and $3.25. For 2026, management expects revenue growth of 8–10% year-over-year, driven by product innovation and geographic diversification. Capital expenditures are projected at $150 million, prioritizing automation in manufacturing. Qualitative expectations include strengthening customer engagement through digital tools and maintaining disciplined cost management amid inflationary pressures.

Additional News

Align Technology announced its 2026 Annual Research Award Program, allocating $300,000 to support dental research in universities globally. The initiative, now in its 16th year, has funded $3.96 million in projects since 2010. Awards will be distributed across the Americas, EMEA, and APAC regions, with each region receiving four grants of up to $25,000. The program emphasizes innovation in digital orthodontics and restorative dentistry, aiming to enhance patient care through scientific advancements. Applications are reviewed by an independent academic committee, with priority given to first-time applicants. This investment underscores Align’s commitment to advancing dental science and fostering academic collaboration.