Charles River Laboratories

Charles River Laboratories (CRL) Q2 2025 Earnings

Reported Aug 6, 2025 at 7:08 AM ET · SEC Source

Q2 25 EPS

$3.12

BEAT +24.59%

Est. $2.50

Q2 25 Revenue

$1.03B

BEAT +4.78%

Est. $985.1M

vs S&P Since Q2 25

+27.7%

BEATING MARKET

CRL +45.5% vs S&P +17.9%

Market Reaction

Did CRL Beat Earnings? Q2 2025 Results

Charles River Laboratories delivered a standout second quarter, posting non-GAAP EPS of $3.12 against a consensus estimate of $2.50, a beat of 24.59%, while revenue of $1.03 billion edged 0.6% higher year-over-year and cleared the $985.08 million con… Read more Charles River Laboratories delivered a standout second quarter, posting non-GAAP EPS of $3.12 against a consensus estimate of $2.50, a beat of 24.59%, while revenue of $1.03 billion edged 0.6% higher year-over-year and cleared the $985.08 million consensus by 4.78%. The stronger-than-expected results were driven in large part by dramatic margin expansion in the Manufacturing segment, where non-GAAP operating margins surged to 32.8% from 26.6% a year ago on commercial CDMO revenue, while restructuring savings lifted profitability across all three divisions. Adding further lift to investor sentiment, the company announced it had been cleared in a DOJ grand jury investigation into its non-human primate supply chain, removing a legal overhang that had weighed on the stock for years. Management raised full-year 2025 non-GAAP EPS guidance to a range of $9.90 to $10.30 from $9.30 to $9.80, and narrowed its revenue outlook, as broader market tailwinds coincided with CEO James Foster signaling that biopharmaceutical client demand is gradually stabilizing.

Key Takeaways

  • Non-GAAP operating margin improvement across all three segments
  • Favorable results in DSA segment drove better-than-expected performance
  • RMS organic revenue growth of 2.3% driven by large research models and GEMS/Insourcing Solutions
  • Manufacturing organic growth of 2.9% driven by Microbial Solutions business
  • Manufacturing non-GAAP margin expansion to 32.8% driven by commercial CDMO client revenue and payments
  • Cost savings from restructuring initiatives benefited margins across segments
  • Lower diluted shares outstanding from stock repurchase program boosted non-GAAP EPS
  • Foreign currency translation added 1.2% to reported revenue
24/7 Wall St

CRL YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

CRL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We are continuing to see clear signs that the biopharmaceutical demand is stabilizing, and in this environment, we are making gradual progress to return to organic revenue growth. This progress was demonstrated in our solid second-quarter financial performance, driven principally by favorable results in our DSA segment.”

— James C. Foster, Q2 2025 Earnings Press Release