Align Technology’s ALGN international expansion efforts to broaden the business are poised to bring significant growth in the upcoming quarters. Also, iTero is gaining from the rapidly evolving intraoral scanning technology in the industry. However, a dull macroeconomic environment and unfavorable foreign exchange movements raise concerns about the company’s sales growth.
In the past year, this Zacks Rank #3 (Hold) company’s shares have lost 11.1% against 11.9% growth of the industry. In contrast, the S&P 500 composite has risen 21.9%.
The renowned medical device company has a market capitalization of $11.26 billion. ALGN projects a long-term estimated earnings growth rate of 10.3% compared with 9.6% for the industry. Its earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 7.8%.
Let’s delve deeper.
Upsides for ALGN Stock
Geographic Expansion Continues: Align Technology is expanding its sales and marketing reach by entering new countries and regions, including previously unexplored areas in Africa and Latin America. At the end of 2025, the company has 13 fabrication and treatment locations throughout the world.
In the EMEA region, Clear Aligner volumes grew double digits year over year, led by increases in Iberia, Italy, Nordics, United Kingdom and Turkey. Growth was driven primarily by utilization gains across both GP and orthodontic channels. In APAC, Clear Aligner volumes also grew double digits year over year, led by China, India, Korea, Japan, India and Taiwan. Growth was broad-based, with teen and growing kid patient categories posting double-digit growth alongside continued growth among adult patients.
iTero in Focus: ALGN’s iTero intraoral scanners, alongside its Exocad CAD/CAM software, continue to gain traction globally as key tools in digital dentistry. iTero scanning remains central to digital workflows, enabling precise treatment planning and visualization.
Additionally, new innovations, including the Invisalign Outcome Simulator Pro, iTero Design Suite, and Align Oral Health Suite, are being used to enhance diagnostic, restorative and orthodontic workflows. Recently, the company has introduced a set of enhancements to its iTero Digital Solutions platform — a comprehensive system that puts together intra-oral scanners, software tools and digital workflows used by dental and orthodontic practices.
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What Ails ALGN?
Currency Headwinds: Foreign exchange is a major headwind for Align Technology due to a considerable percentage of its revenues coming from outside the United States. Time to time, Clear Aligner Average Selling Prices (“ASP”) are significantly impacted by unfavorable foreign exchange across multiple currencies, especially the Japanese yen, Euro and Brazilian real. First-quarter gross margin was unfavorably impacted by foreign exchange of 0.4 points year over year.
Macroeconomic Concerns: Align Technology continues to navigate macroeconomic pressures, including inflation-driven increases in labor and freight costs, staffing shortages and ongoing supply-chain challenges — factors that are affecting profitability across the elective dental treatment space. In the first quarter of 2026, these issues led to a 1.4% increase in the company cost of sales.
ALGN Stock Estimate Trend
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has remained unchanged at $11.36 in the past 30 days.
The Zacks Consensus Estimate for 2026 revenues is pegged at $4.19 billion, suggesting a 3.7% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Alcon ALC, Integra LifeSciences IART and Phibro Animal Health PAHC.
Alcon has an earnings yield of 5.1% against the industry’s negative 2.8% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. ALC’s earnings topped estimates in three of the trailing four quarters and missed in one, the average surprise being 3.7%.
ALC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Integra LifeSciences, carrying a Zacks Rank #2 at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.
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