Charles River Laboratories International Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did CRL Beat Earnings? Q1 2026 Results
Charles River Laboratories International posted a stronger-than-expected first quarter for fiscal 2026, beating consensus estimates on both top and bottom lines and extending its streak of EPS beats to four consecutive quarters. The contract research organization reported non-GAAP diluted EPS of $2.06, clearing the $1.94 consensus by 5.99%, while revenue of $995.83 million edged 1.88% above expectations and grew 1.2% year over year. The headline results, however, carried notable complexity: on a GAAP basis, the company recorded a net loss driven by a $118.00 million pre-tax loss on assets held for sale tied to the divestiture of its CDMO and Cell Solutions businesses, completed in early May. Manufacturing Solutions was the quarter's brightest spot, with organic revenue growth of 2.9% and margin expansion to 25.9%, while the larger DSA segment saw organic revenue slip 1.4% amid higher study-related costs. Looking ahead, management reaffirmed its 2026 non-GAAP EPS guidance of $10.80 to $11.30 and organic revenue outlook of a 1.5% to 0.5% decline, signaling confidence in a gradual improvement through the remainder of the year.
- Manufacturing Solutions organic revenue growth of 2.9% driven by Microbial Solutions business
- Foreign currency translation increased reported revenue by 2.8%
- Higher study-related direct costs in DSA segment pressured non-GAAP operating margins
- Unfavorable revenue mix in RMS segment related to small research models in North America and large research models
- Higher stock-based compensation expense related largely to executive transition
- Lower accelerated amortization expense related to CDMO client relationships improved GAAP operating margin
- Cost savings from restructuring initiatives benefited Manufacturing segment margins
- Higher revenue for small research models in China partially offset RMS declines
“We are pleased to deliver on our first-quarter financial targets, and remain well positioned to generate improving results over the course of the year. Our confidence is supported by a DSA demand environment that is tracking to our expectations, resulting in solid bookings in the first quarter, as well as the successful execution of our strategy.”
Charles River Laboratories CEO, on the earnings call
Forward Guidance & Outlook
Charles River reaffirmed its 2026 organic revenue guidance of (1.5)% to (0.5)% decline and non-GAAP EPS guidance of $10.80 to $11.30. Reported revenue growth guidance was reduced by approximately 50 basis points to a decline of (5.5)% to (4.0)% due to updated foreign exchange rate assumptions. GAAP EPS guidance was updated to $5.35 to $5.85, primarily reflecting the impact of the completed CDMO and Cell Solutions divestiture and the planned sale of certain European Discovery Services sites. The company expects improving results over the course of the year.
CRL YoY Financials
CRL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.