Charles River Laboratories Announces Third-Quarter 2026 Results
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (CRL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE Charles River Laboratories Announces Third-Quarter 2026 Results WILMINGTON, MA, November 4, 2026 – Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the third quarter ended September 26, 2026. Key Highlights • Repo
How this was made
The 30-second read
Why it matters
The raised guidance and improved margins provide a fresh positive catalyst, likely prompting short‑term buying.
Market read
First‑time disclosure of earnings and guidance makes this a high‑impact news item for CRL and related sector peers.
What to watch
Divestitures and tax reserve reversals are non‑recurring; future growth may be slower than implied.
Charles River reported third-quarter revenue of $982.7 million, 4.7% organic revenue growth, GAAP diluted earnings per share of $6.86, and non-GAAP diluted earnings per share of $3.09, while increasing 2026 revenue and earnings per share guidance.
Organic revenue grew 4.7%, non-GAAP diluted earnings per share increased 27.2%, and the Company raised full-year organic revenue and non-GAAP EPS guidance. Reported revenue declined 2.2% due primarily to May 2026 divestitures, while GAAP earnings were materially aided by the reversal of acquired tax reserves.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third-quarter service revenueGAAP | $780.3M | – | – |
| Third-quarter product revenueGAAP | $202.4M | – | – |
| Third-quarter total revenueGAAP | $982.7M | – | (2.2)% |
| Third-quarter organic revenue growthnon-GAAP | 4.7% | – | 4.7% |
| Third-quarter cost of services provided, excluding amortization of intangible assetsGAAP | $522.8M | – | – |
| Third-quarter cost of products sold, excluding amortization of intangible assetsGAAP | $102.0M | – | – |
| Third-quarter selling, general and administrative expenseGAAP | $140.6M | – | – |
| Third-quarter amortization of intangible assetsGAAP | $14.64M | – | – |
| Third-quarter operating incomeGAAP | $202.6M | – | – |
| Third-quarter operating marginGAAP | 20.6% | – | 730 basis points |
| Third-quarter operating income, excluding non-GAAP adjustmentsnon-GAAP | $225.8M | – | – |
| Third-quarter non-GAAP operating marginnon-GAAP | 23.0% | – | 330 basis points |
| Third-quarter income before income taxesGAAP | $170.7M | – | – |
| Third-quarter provision (benefit) for income taxesGAAP | ($ 163,787) (in thousands) | – | – |
| Third-quarter net incomeGAAP | $334.4M | – | – |
| Third-quarter net income attributable to common shareholdersGAAP | $333.1M | – | – |
| Third-quarter diluted earnings per shareGAAP | $6.86 per diluted share | – | – |
| Third-quarter basic earnings per shareGAAP | $6.97 | – | – |
| Third-quarter non-GAAP net incomenon-GAAP | $150.1M | – | 24.8% |
| Third-quarter non-GAAP diluted earnings per sharenon-GAAP | $3.09 | – | 27.2% |
| Third-quarter non-GAAP basic earnings per sharenon-GAAP | $3.14 | – | – |
| Nine-month total revenueGAAP | $2.98B | – | (1.3)% |
| Nine-month organic revenue growthnon-GAAP | 1.0% | – | 1.0% |
| Nine-month operating incomeGAAP | $442.4M | – | – |
| Nine-month operating marginGAAP | 14.8% | – | – |
| Nine-month operating income, excluding non-GAAP adjustmentsnon-GAAP | $594.1M | – | – |
| Nine-month non-GAAP operating marginnon-GAAP | 19.9% | – | – |
| Nine-month net income attributable to common shareholdersGAAP | $316.7M | – | – |
| Nine-month diluted earnings per shareGAAP | $ 6.48 | – | – |
| Nine-month non-GAAP net income available to common shareholdersnon-GAAP | $398.1M | – | – |
| Nine-month non-GAAP diluted earnings per sharenon-GAAP | $ 8.14 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Discovery and Safety Assessment (DSA)Reported revenue was affected by the divestiture of certain European Discovery Services sites. Organic growth was driven primarily by higher study volume for regulated safety assessment services. | $596.3M | – | (0.7)% reported; 5.9% organic |
| Manufacturing Solutions (Manufacturing)Reported revenue was affected by the CDMO divestiture. Organic growth was driven by strong demand in both Biologics Testing Solutions and Microbial Solutions. | $178.9M | – | (6.2)% reported; 7.4% organic |
| Research Models and Services (RMS)The Cell Solutions divestiture reduced reported revenue. Organic revenue declined due primarily to lower North American small research model revenue and lower large research model revenue, partly offset by China small research models and research model services. | $207.5M | – | (2.8)% reported; (0.6)% organic |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- RevenueRevenue growth/(decrease), reported: (2.0)% - (1.5)%; Revenue growth/(decrease), organic: At least +1.5%
- NoteGAAP EPS estimate: $8.15 – $8.35
- NoteNon-GAAP EPS estimate: $11.35 – $11.55
- NoteContribution from acquisitions: 0.0% - (0.5)%
- NoteImpact from divestitures: ~4.5%
- NoteFavorable impact of foreign exchange: (0.5)% - (1.0)%
- NoteAcquisition-related amortization: ~$2.10
- NoteAcquisition- and divestiture-related costs: ~$4.70
- NoteReversal of acquired tax reserves: ($5.03)
- NoteCosts associated with restructuring and efficiency initiatives: ~$1.50
- NoteOther, net: ($0.03)
Capital returns
- Purchase of treasury stock: ($ 324,105) (in thousands) for the nine months ended September 26, 2026.
- Treasury stock, at cost: ($323,281) (in thousands) as of September 26, 2026.
- The filing references the Company's stock repurchase authorization but does not state an authorization amount.
What drove it
- Third-quarter organic revenue growth of 4.7% was driven by growth in Manufacturing and DSA.
- DSA organic revenue increased 5.9%, driven primarily by higher study volume for regulated safety assessment services.
- Manufacturing organic revenue increased 7.4%, driven by strong demand in Biologics Testing Solutions and Microbial Solutions.
- Non-GAAP operating margin increased to 23.0% from 19.7%, primarily due to the CDMO divestiture and operating leverage from higher sales volume for safety assessment services.
- The Company said guidance increases primarily reflected third-quarter outperformance led by better-than-expected DSA performance and a lower tax rate.
- DSA net bookings and proposals continued to show robust, year-over-year increases.
Concerns
- Reported third-quarter revenue decreased 2.2%, primarily driven by the impact of May 2026 divestitures.
- RMS organic revenue decreased 0.6%, due primarily to lower North American small research model revenue and lower large research model revenue.
- RMS non-GAAP operating margin decreased to 24.4% from 25.0%, primarily due to unfavorable revenue mix geographically and related to large research models.
- GAAP net income and GAAP diluted EPS included a benefit totaling $245.6 million, or $5.06 per share, associated with the reversal of acquired tax reserves.
- Nine-month net cash provided by operating activities was $ 474,887 (in thousands), compared with $ 590,126 (in thousands) in the prior-year period.
- Long-term debt, net and finance leases was $ 2,443,461 (in thousands) as of September 26, 2026, compared with $ 2,136,360 (in thousands) as of December 27, 2025.
What to watch
- Conversion of DSA net bookings and proposals into revenue.
- Whether Manufacturing demand in Biologics Testing Solutions and Microbial Solutions continues to support organic growth.
- RMS demand for small research models in North America and large research models, as well as the effect of geographic and large-model mix on margin.
- Execution of the Pathway to Purpose strategic vision and Create the Future initiative.
- Completion and financial effects of restructuring, efficiency, acquisition, and divestiture activities.
- Delivery against 2026 organic revenue growth guidance of at least +1.5% and non-GAAP EPS guidance of $11.35 – $11.55.
Balance sheet and cash flow
- Cash and cash equivalents: $ 200,381 (in thousands) as of September 26, 2026, compared with $ 213,770 (in thousands) as of December 27, 2025.
- Long-term debt, net and finance leases: $ 2,443,461 (in thousands) as of September 26, 2026, compared with $ 2,136,360 (in thousands) as of December 27, 2025.
- Total assets: $ 7,451,507 (in thousands) as of September 26, 2026, compared with $ 7,135,422 (in thousands) as of December 27, 2025.
- Net cash provided by operating activities: $ 474,887 (in thousands) for the nine months ended September 26, 2026, compared with $ 590,126 (in thousands) for the nine months ended September 27, 2025.
- Capital expenditures: $ 133,823 (in thousands) for the nine months ended September 26, 2026, compared with $ 130,202 (in thousands) for the nine months ended September 27, 2025.
- Acquisition of businesses and assets, net of cash acquired: ($ 467,254) (in thousands) for the nine months ended September 26, 2026.
- Proceeds from sale of businesses and assets, net: $ 176,563 (in thousands) for the nine months ended September 26, 2026.
- Net cash used in investing activities: ($ 369,521) (in thousands) for the nine months ended September 26, 2026.
- Net cash used in financing activities: ($ 71,083) (in thousands) for the nine months ended September 26, 2026.
- Cash, cash equivalents, and restricted cash, end of period: $ 249,081 (in thousands) as of September 26, 2026, compared with $ 209,220 (in thousands) as of September 27, 2025.
Analysis
Charles River returned to organic growth for the second consecutive quarter, reporting 4.7% organic revenue growth despite a 2.2% decline in reported third-quarter revenue to $982.7 million. The reported decline primarily reflected the May 2026 divestitures. DSA and Manufacturing generated organic growth of 5.9% and 7.4%, respectively, while RMS organic revenue declined 0.6%.
DSA was the principal operating driver. Higher study volume for regulated safety assessment services supported DSA organic growth, and management said third-quarter outperformance was principally driven by better-than-expected DSA performance. Manufacturing also showed strong underlying demand in Biologics Testing Solutions and Microbial Solutions, though the CDMO divestiture reduced its reported revenue. RMS remained the weak point, with lower North American small research model revenue and lower large research model revenue, and with unfavorable mix reducing its non-GAAP operating margin.
Profitability improved materially. GAAP operating margin rose to 20.6% from 13.3%, while non-GAAP operating margin rose to 23.0% from 19.7%. The GAAP result included a $44.6 million DSA benefit from the reversal of acquired non-income tax reserves, while the non-GAAP margin improvement reflected the CDMO divestiture and operating leverage from higher safety assessment sales volume. GAAP diluted EPS of $6.86 included a $245.6 million, or $5.06 per share, benefit associated with the reversal of acquired tax reserves. Non-GAAP diluted EPS of $3.09 increased 27.2% from $2.43 per share.
Capital allocation included ($ 324,105) (in thousands) of treasury stock purchases during the first nine months, alongside ($ 467,254) (in thousands) used for acquisitions of businesses and assets. Cash and cash equivalents were $ 200,381 (in thousands) at September 26, 2026, and long-term debt, net and finance leases were $ 2,443,461 (in thousands). Nine-month operating cash flow was $ 474,887 (in thousands), below $ 590,126 (in thousands) in the prior-year period.
The Company raised 2026 guidance following the quarter. It now expects reported revenue growth/(decrease) of (2.0)% - (1.5)%, organic revenue growth of at least +1.5%, GAAP EPS of $8.15 – $8.35, and non-GAAP EPS of $11.35 – $11.55. The guide increase was attributed to third-quarter outperformance, better-than-expected DSA performance, and a lower tax rate, while the revised GAAP EPS outlook also reflects the third-quarter tax-reserve reversal.
Management, verbatim
“In the third quarter, we were encouraged by the continued strength of the biopharmaceutical demand environment and that was reflected in our financial results. Revenue and earnings per share outperformed our prior expectations, DSA net bookings and proposals continued to show robust, year-over-year increases, and we continued to make meaningful progress towards our strategy and long-term financial targets.”
Birgit Girshick, Chief Executive Officer
“We see significant opportunities to continue to strengthen Charles River’s position as a leading scientific partner for regulated testing across the drug development continuum.”
Birgit Girshick, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no comparison of actual results with prior guidance is included.
- Gross profit and gross margin were not reported.
- Quarterly operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend amount and dividend payment details were not reported.
- Net debt was not reported.
- Quarterly cash and debt comparisons were not reported.
- Prior-quarter comparisons for revenue, earnings, margins, segments, and EPS were not reported.
- A quantitative tax-rate metric was not reported.
- Share repurchase authorization amount and remaining authorization were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard SEC Form 8‑K Item 2.02 earnings release for a U.S. listed biotech services company.
Ticker impact
Charles River Laboratories reported Q3 2026 results with higher revenue, GAAP EPS $6.86 and raised 2026 guidance for revenue and non‑GAAP EPS.
likely upward pressure as investors price in higher future earnings
The 8‑K filing is the first public disclosure of the quarter's numbers and includes an increase to revenue and non‑GAAP EPS guidance, a material catalyst for the stock.
Market effects
Strong results may boost sentiment in the contract research and biotech services sector.
U.S. biotech and pharma service stocks could see modest gains.
Limited to investors focused on U.S. life‑science service providers.
Counterpoint
If the revenue decline of 2.2% outweighs the guidance raise, the stock could face pressure.
Key entities
- companyCharles River Laboratories International, Inc.
U.S. contract research organization reporting Q3 2026 results.
