Align Technology Stock Plunges Over 35% on Q2 Disappointing Earnings, Restructuring Announcement

Align Technology (NASDAQ: ALGN) experienced a sharp decline in its stock price, falling over 35% in early August 2025 following a disappointing second-quarter earnings report. The company posted adjusted earnings per share of $2.49 and revenue of $1.01 billion, both missing analyst expectations and reflecting a 1.6% year-over-year revenue decline. In response, Align announced a restructuring plan including layoffs and one-time charges of $150–170 million to improve long-term profitability, with the CEO calling these measures "difficult but necessary." The company also revised its annual revenue forecast to flat growth, down from an earlier 3.5–5.5% increase, signaling ongoing challenges in its Invisalign product segment amid declining consumer demand. Analysts and investors reacted negatively, with major firms lowering price targets and shares hitting their lowest levels in over eight years, while high trading volumes indicated heightened market activity and investor concern. Despite its strong market position and historical growth, Align faces significant operational and financial headwinds as it seeks to adapt to shifting market dynamics.