ALGN
Align Technology, Inc.
Healthcare · Medical Instruments & Supplies · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 36.4/100 reflects modest profitability offset by near-zero revenue growth, volatile quarterly earnings, no dividend income, and no thematic tailwind.
- The growth factor is constrained by only 0.9% revenue growth and a 2.6% net income decline year-over-year, limiting the score well below midpoint on that dimension.
- Zero contributions from the dividend and theme factors structurally cap the total score, as those two factors together represent a significant portion of the model's 100-point scale.
Why Not Higher
- Revenue growth of just 0.9% and a net income decline of 2.6% from FY2024 to FY2025 prevent the growth factor from contributing meaningfully to the score.
- The complete absence of dividend payments and any macro theme assignment means 40 potential points on the scale contribute nothing to the total score.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew modestly from FY2024 to FY2025, rising from $3,999,012,000 to $4,034,964,000 (+0.9%), while net income declined from $421,362,000 to $410,351,000 (-2.6%) over the same period. Diluted EPS edged up just +0.5% from FY2024 to FY2025.
The model reflects a near-stagnant top line and a slight earnings contraction, which together limit the growth score well below the midpoint of the 20-point scale.
In FY2025, Align Technology posted an operating margin of 13.5%, a net margin of 10.2%, and a return on assets of 6.6%.
These figures indicate a solidly profitable business with double-digit margins, which the model rewards with a score above the midpoint, though the relatively modest return on assets tempers the result from reaching the upper range.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue over the last four reported periods was $1,012,449,000 in 2025Q2, $995,692,000 in 2025Q3, $1,047,561,000 in 2025Q4, and $1,040,087,000 in 2026Q1, showing a dip in 2025Q3 followed by a partial recovery. Net income followed a similarly uneven path: $124,608,000 in 2025Q2, $56,753,000 in 2025Q3, $135,760,000 in 2025Q4, and $112,771,000 in 2026Q1.
The pattern reflects neither consistent acceleration nor sustained deterioration, but rather quarter-to-quarter volatility around a roughly stable revenue base, which the model treats as neutral momentum warranting a mid-range score.
Align Technology does not currently pay a dividend; this is a genuine characteristic of the company, not a data gap.
Because the model rewards income-generating dividend history and Align Technology has no mapped dividend history at all, the factor contributes zero points to the overall score.
Align Technology is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment is a neutral classification outcome; it simply means the security does not map to a tracked macro theme at this time, and no thematic tailwind or headwind is reflected in the score.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Align Technology is a profitable but slow-growing business, with annual revenue rising just 0.9% from FY2024 to FY2025 and net income declining 2.6% over the same period. The company maintains solid double-digit operating and net margins of 13.5% and 10.2% respectively in FY2025, but quarterly results have been volatile rather than consistently improving. With no dividend, no assigned macro theme, and near-stagnant top-line growth, the model assigns a High risk rating and a Monitor Only label.
Plain English
Align Technology makes money and has decent profit margins, but its sales are barely growing, earnings dipped slightly, and it pays no dividend — so right now the model sees it as a company to watch rather than act on.
Bull Case vs. Bear Case
Bull Case
- Align Technology maintains double-digit profitability, with a 13.5% operating margin and 10.2% net margin in FY2025, indicating a fundamentally sound business.
- Quarterly revenue has held in a relatively stable band around $1 billion per quarter across the last four reported periods, suggesting the business is not in decline.
- Diluted EPS edged up 0.5% from FY2024 to FY2025, meaning per-share earnings have not materially eroded despite modest revenue growth.
Bear Case
- Annual revenue growth was only 0.9% from FY2024 to FY2025, and net income actually fell 2.6% over the same period, reflecting a near-stagnant and slightly deteriorating earnings trajectory.
- Quarterly net income has been highly volatile, swinging from $124,608,000 in 2025Q2 down to $56,753,000 in 2025Q3 before recovering, signaling inconsistent operational performance.
- Align Technology pays no dividend and is not assigned to any tracked macro theme, meaning it offers neither income nor a thematic tailwind to support the investment case.
What Could Change the Picture
Bullish Triggers
- A sustained acceleration in quarterly revenue growth — moving meaningfully above the current ~$1 billion per quarter plateau — would signal that the top-line stagnation is reversing.
- A consistent improvement in quarterly net income, reducing the large swings seen between quarters, would suggest improving operational stability and could lift the momentum score.
Bearish Triggers
- If operating margins compress below current levels from the 13.5% reported in FY2025, it would indicate the profitability foundation that currently supports the score is eroding.
- A further decline in annual net income beyond the 2.6% drop already recorded from FY2024 to FY2025 would deepen concerns about earnings quality.
Risk Profile
High RiskQuarterly net income has shown significant volatility, dropping from $124,608,000 in 2025Q2 to $56,753,000 in 2025Q3 before partially recovering, which introduces uncertainty about earnings consistency. This uneven momentum pattern, combined with the financial health factor scoring below the midpoint, supports the High risk rating assigned by the model.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.