Align Technology’s board of directors has authorized a new stock repurchase program worth US$1 billion, following the completion of its previous US$1-billion buyback on May 1.
The new program allows Align to repurchase up to US$1 billion of its common stock over the next three years. The prior authorization, approved in January 2023, was completed on May 1, 2025, with settlement on May 2.
The announcement follows the release of Align’s first-quarter 2025 financial results on April 30, which showed a slight decline in total revenue but beat earnings expectations. In April, Morgan Stanley also reduced Align’s price target from US$272 to US$249 but maintained its “overweight” rating, indicating continued confidence in the company’s potential.
“The new US$1-billion program reflects the strength of our balance sheet and cash flow generation.” John Morici, Align’s CFO and executive vice-president, global finance.
“The new US$1-billion program reflects the strength of our balance sheet and cash flow generation, as well as management’s and our board’s continued confidence in our ability to capitalize on large market opportunities in our target markets and trajectory for growth,” said John Morici, Align’s CFO and executive vice-president, global finance. “Returning capital to our shareholders through stock repurchase programs, while simultaneously investing in our strategic growth drivers, is consistent with our capital allocation strategy and commitment to increasing shareholder value.”
As of March 31, Align had approximately 73.1 million shares outstanding and US$873 million in cash and cash equivalents.
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Q1 report
In late April, the company reported Q1 revenues of US$979.3 million, marking a 1.8 per cent decrease year-over-year. However, Clear Aligner volume increased by 6.2 per cent to 642,300 cases, with treatments for teens and growing patients rising 13.3 per cent to 225,800 cases, driven by continued adoption of Invisalign First.
Despite headwinds from unfavourable foreign exchange, Align reported a non-GAAP diluted earnings per share of US$2.13 in Q1 2025, surpassing the US$2.00 analysts’ forecast and demonstrating operational resilience.
For the second quarter, Align expects worldwide revenues to range from US$1.05 billion to US$1.07 billion, up from Q1.
“We have assessed the potential impact of China’s retaliatory tariffs and believe that we are able to mitigate most of the tariff.” Align’s statement.
Tariff outlook remains uncertain
Align also addressed potential tariff impacts in its earnings release. The company said it expects an “incremental tariff, if implemented, to be applied to transfer prices on goods shipped from Mexico.”
“As noted in President Trump’s executive order dated April 2, 2025, USMCA-compliant goods are exempt from the tariffs under the order. However, the U.S.-Mexico tariff situation remains fluid, and we are unable to predict whether USMCA-compliant products will remain exempt, whether there will be other changes to the announced order, or if additional tariffs will be imposed in the future,” the company said.
Align added it does not anticipate significant tariff impacts on its operations in China, where Clear Aligners are made for the Asian market.
“We have assessed the potential impact of China’s retaliatory tariffs and believe that we are able to mitigate most of the tariff exposure through adjustments in our supply chain,” it said.
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