Align Technology Plunges 35.16% on Disappointing Q2 Results

On July 31, 2025, Align Technology's stock experienced a significant drop of 35.16% in pre-market trading, marking a substantial decline in its share value.

Align Technology, a leading dental technology company, reported disappointing second-quarter results, missing both revenue and earnings expectations. The company's revenue for the quarter was $1.01 billion, a 1.6% year-over-year decrease, and earnings per share (EPS) came in at $2.49, missing the consensus estimate of $2.57. This underperformance led to a significant drop in the company's share price in after-hours trading.

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. Stifel, for instance, reduced its price target to $200 following the disappointing quarterly results.

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. The company's strategic shifts and efforts to improve its performance may also contribute to a positive outlook in the long term.