Charles River Laboratories International (NYSE:CRL) Issues Earnings Results

Key Points

• Charles River Laboratories beat first-quarter expectations, reporting $2.06 EPS versus the $1.96 consensus and revenue of $995.8 million, above estimates and up 1.2% year over year.
• Despite the earnings beat, the quarter showed margin pressure and softer organic growth, with organic revenue down 1.5% and non-GAAP operating margin falling 280 basis points to 16.3%.
• Management kept its FY 2026 EPS guidance at $10.80 to $11.30 and said it expects at least $100 million in incremental cost savings next year, along with 120–150 basis points of operating margin expansion.

Charles River Laboratories International (NYSE:CRL - Get Free Report) issued its earnings results on Thursday. The medical research company reported $2.06 EPS for the quarter, beating analysts' consensus estimates of $1.96 by $0.10, Briefing.com reports. Charles River Laboratories International had a positive return on equity of 15.36% and a negative net margin of 4.59%.The firm had revenue of $995.83 million for the quarter, compared to analyst estimates of $977.46 million. During the same quarter in the prior year, the firm earned $2.34 earnings per share. Charles River Laboratories International's revenue for the quarter was up 1.2% on a year-over-year basis. Charles River Laboratories International updated its FY 2026 guidance to 10.800-11.300 EPS.

Here are the key takeaways from Charles River Laboratories International's conference call:

• The company expects at least $100M of incremental cost savings in 2026 (and over $300M cumulatively) and forecasts approximately 120–150 basis points of operating margin expansion in 2026, with most benefit occurring in the second half of the year.
• Q1 results were pressured — revenue of $996M with organic revenue down 1.5%, non‑GAAP operating margin down 280 bps to 16.3%, and non‑GAAP EPS of $2.06 (down 12%), driven by stock‑compensation timing and higher NHP sourcing/study costs.
• Leadership and portfolio actions — new CEO Birgit Girshick and CFO Glenn Coleman introduced the "Pathway to Purpose" strategy while completing acquisitions (KF Cambodia, PathoQuest) and divesting CDMO/cell solutions (with a planned sale of certain European discovery sites) to sharpen focus on core testing and drive margin improvement.
• Demand trends are mixed — DSA posted a net book‑to‑bill of 1.04, backlog of $1.92B and bookings of $622M with biotech proposals up high single digits and sequential proposal growth, but startup biotech activity remains tepid and RMS was affected by timing of NHP shipments.

Charles River Laboratories International Price Performance

NYSE CRL traded down $3.72 on Friday, hitting $177.96. The company had a trading volume of 978,093 shares, compared to its average volume of 805,437. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.36 and a quick ratio of 1.02. The company's fifty day moving average price is $170.79 and its 200-day moving average price is $183.34. The company has a market capitalization of $8.78 billion, a PE ratio of -47.33, a PEG ratio of 2.20 and a beta of 1.44. Charles River Laboratories International has a 12-month low of $132.58 and a 12-month high of $228.88.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on CRL shares. Robert W. Baird set a $213.00 price objective on shares of Charles River Laboratories International in a report on Friday. Citigroup upped their price target on shares of Charles River Laboratories International from $200.00 to $265.00 and gave the company a "buy" rating in a report on Friday, January 16th. Wall Street Zen downgraded Charles River Laboratories International from a "buy" rating to a "hold" rating in a research report on Saturday, February 21st. Evercore reiterated an "outperform" rating and set a $220.00 price objective on shares of Charles River Laboratories International in a research note on Friday. Finally, JPMorgan Chase & Co. lowered their target price on Charles River Laboratories International from $165.00 to $160.00 and set a "neutral" rating on the stock in a research note on Monday, April 13th. Eleven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $205.86.

Charles River Laboratories International News Roundup

Here are the key news stories impacting Charles River Laboratories International this week:

• Positive Sentiment: Charles River reported Q1 EPS of $2.06, ahead of the $1.96 consensus, and revenue of $995.8 million, also above estimates. Reuters article
• Positive Sentiment: Reuters noted steady demand for drug discovery and development services, suggesting the core business is stabilizing. Reuters article
• Neutral Sentiment: Management reaffirmed full-year 2026 EPS guidance of $10.80 to $11.30, which is in line with expectations but not a major upside surprise. Earnings release and transcript
• Negative Sentiment: Investors appear concerned that margin compression and weak organic growth may offset the earnings beat, which helps explain the stock’s weakness. Zacks article
• Negative Sentiment: One recent analyst note downgraded CRL to Sell, citing a strong share rally, muted near-term growth, and longer-term risks. Seeking Alpha article

Institutional Investors Weigh In On Charles River Laboratories International

Several institutional investors and hedge funds have recently added to or reduced their stakes in CRL. Mercer Global Advisors Inc. ADV grew its holdings in shares of Charles River Laboratories International by 1.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 6,316 shares of the medical research company's stock valued at $1,260,000 after purchasing an additional 80 shares during the period. Advisory Services Network LLC raised its stake in Charles River Laboratories International by 2.6% during the third quarter. Advisory Services Network LLC now owns 3,226 shares of the medical research company's stock worth $505,000 after purchasing an additional 83 shares during the period. Smartleaf Asset Management LLC boosted its holdings in Charles River Laboratories International by 14.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 744 shares of the medical research company's stock valued at $150,000 after purchasing an additional 94 shares during the last quarter. Public Employees Retirement System of Ohio lifted its holdings in Charles River Laboratories International by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 15,240 shares of the medical research company's stock valued at $2,384,000 after acquiring an additional 95 shares during the last quarter. Finally, Brown Advisory Inc. grew its holdings in shares of Charles River Laboratories International by 5.1% during the 2nd quarter. Brown Advisory Inc. now owns 2,333 shares of the medical research company's stock worth $354,000 after purchasing an additional 114 shares during the period. Institutional investors and hedge funds own 98.91% of the company's stock.

About Charles River Laboratories International

Charles River Laboratories International, Inc is a leading provider of research models and preclinical and clinical support services for the pharmaceutical, biotechnology and medical device industries. The company's core offerings include discovery, safety assessment, toxicology, and pathology services, as well as supply of laboratory animals and related diagnostics. Services extend across in vivo and in vitro testing, biologics testing, and support for advanced therapies, helping clients accelerate drug development from early discovery through regulatory submission.

Founded in 1947 in Wilmington, Massachusetts, Charles River has grown through strategic investments and acquisitions to establish a broad portfolio of capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.