Align Technology (ALGN) Is Down After Earnings Miss and Legal Scrutiny Will Growth Hopes Hold Up?

• Earlier this month, Align Technology reported its second quarter 2025 financial results, missing revenue estimates and lowering both third-quarter guidance and full-year growth expectations, which led to the announcement of law firm investigations into alleged securities law violations and possible unlawful business practices by company leadership.
• This heightened scrutiny follows recent patent infringement lawsuits filed by Align against Angelalign Technology, as well as broader industry concerns over economic uncertainty and reduced demand for discretionary dental procedures.
• We'll examine how disappointing earnings and the launch of multiple securities investigations may affect Align Technology's longer-term growth outlook.

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Align Technology Investment Narrative Recap

Investors in Align Technology need to believe in the company's ability to reignite global demand for clear aligners and capitalize on new product launches, despite strong competitive headwinds and evolving consumer sentiment. The recent revenue miss and lowered guidance weigh on short-term sentiment, and investigations into potential securities law violations add further pressure, putting both near-term demand recovery and reputational risk in sharper focus. However, these developments do not appear to meaningfully impact the company’s most important long-term growth initiatives at this stage.

The announcement of patent infringement lawsuits against Angelalign Technology is particularly relevant to the competitive pressures highlighted this quarter. Protecting intellectual property is central to Align's brand and ability to maintain pricing power, especially as rivals continue to challenge its market share in key international regions. Legal outcomes in these disputes could shape Align’s ability to defend its market position going forward.

In contrast, investors should be aware of how persistent macroeconomic uncertainty can continue to suppress demand for elective dental procedures, especially if patient traffic...

Read the full narrative on Align Technology (it's free!)

Align Technology's narrative projects $4.5 billion in revenue and $674.9 million in earnings by 2028. This requires 4.6% yearly revenue growth and a $237.3 million increase in earnings from $437.6 million today.

Uncover how Align Technology's forecasts yield a $186.36 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided seven fair value estimates for Align Technology ranging from US$110.08 to US$314.01. With competitive risks and patent challenges in focus, opinions can differ widely so explore several viewpoints.

Explore 7 other fair value estimates on Align Technology - why the stock might be worth over 2x more than the current price!

Build Your Own Align Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Align Technology research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Align Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Align Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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