Charles River Laboratories International (NYSE:CRL) Posts Earnings Results, Beats Expectations By $0.28 EPS

Key Points

• Charles River beat quarterly expectations, reporting adjusted EPS of $3.02 versus the $2.74 consensus and revenue of approximately $1.0 billion versus estimates of $977.2 million. However, revenue declined 2.7% year over year and EPS fell from $3.12 a year earlier.
• The company raised its FY 2026 adjusted EPS guidance to $11.15–$11.45, supported by expected margin expansion, portfolio divestitures and lower non-human-primate sourcing costs.
• Demand improved in the Discovery and Safety Assessment segment, with bookings up 12.6% sequentially and backlog reaching $1.97 billion, though Research Models and Services remained weak and is still expected to post a low- to mid-single-digit organic decline in 2026.

Charles River Laboratories International (NYSE:CRL - Get Free Report) announced its quarterly earnings results on Wednesday. The medical research company reported $3.02 EPS for the quarter, beating analysts' consensus estimates of $2.74 by $0.28, Briefing.com reports. The company had revenue of $1 billion during the quarter, compared to analyst estimates of $977.20 million. Charles River Laboratories International had a positive return on equity of 15.36% and a negative net margin of 4.59%.The firm's revenue was down 2.7% on a year-over-year basis. During the same period in the prior year, the company earned $3.12 earnings per share. Charles River Laboratories International updated its FY 2026 guidance to 11.150-11.450 EPS.

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

• Charles River raised its 2026 outlook, now projecting flat to 1% organic revenue growth and non-GAAP EPS of $11.15–$11.45, up $0.25 at the midpoint from prior guidance.
• DSA demand improved materially, with second-quarter net bookings rising 12.6% sequentially to $701 million, backlog reaching $1.97 billion, and net book-to-bill increasing to 1.19 times. Management expects DSA organic growth to accelerate in the second half.
• Portfolio divestitures and lower non-human-primate sourcing costs are expected to drive at least 500 basis points of operating-margin improvement in the second half, while manufacturing margins are expected to approach 40%.
• RMS revenue declined 1.4% organically, pressured by weaker North American research-model volumes and constrained academic and government spending; management continues to forecast a low- to mid-single-digit organic decline for the segment in 2026.
• A higher expected tax rate of 23%–24%, partly tied to proposed legislation in Mauritius, is expected to create an approximately $0.20 per-share EPS headwind for the year, although a lower-than-expected change could provide upside.

Charles River Laboratories International Trading Up 11.1%

Charles River Laboratories International stock traded up $26.04 during midday trading on Wednesday, reaching $260.16. The stock had a trading volume of 1,322,243 shares, compared to its average volume of 920,136. The company has a quick ratio of 1.03, a current ratio of 1.36 and a debt-to-equity ratio of 0.90. The firm has a market cap of $12.53 billion, a price-to-earnings ratio of -69.26, a price-to-earnings-growth ratio of 2.57 and a beta of 1.38. Charles River Laboratories International has a 52-week low of $144.26 and a 52-week high of $267.99. The company has a fifty day moving average of $209.54 and a 200 day moving average of $188.12.

Trending Headlines about Charles River Laboratories International

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

• Positive Sentiment: CRL reported second-quarter adjusted earnings of $3.02 per share, exceeding analyst estimates of approximately $2.72–$2.74. Revenue of about $1.0 billion also surpassed the roughly $977 million consensus. CRL Q2 Earnings and Revenues Top, 2026 View Up
• Positive Sentiment: The company raised its FY 2026 adjusted EPS outlook to $11.15–$11.45, above the prior consensus near $11.09, and issued revenue guidance of approximately $3.9 billion, ahead of Wall Street expectations. Charles River lifts profit forecast on improving biotech demand
• Positive Sentiment: Management cited improving demand from biotechnology customers for drug discovery and development services, along with a positive inflection in order trends. The Discovery and Safety Assessment segment reportedly has a strong backlog and book-to-bill ratio. CRL Q2 2026 Earnings Call Transcript
• Positive Sentiment: Margin expansion is expected to benefit from cost reductions and recent divestitures, supporting the higher profit outlook even as the company targets only slightly positive organic revenue growth. Charles River: Near-Term Inflection But Long-Term Risk
• Neutral Sentiment: The earnings beat was partly offset by comparisons with a strong prior-year quarter, making execution and sustained biotech demand important for validating the recovery.
• Negative Sentiment: Second-quarter revenue declined 2.7% year over year, while EPS fell from $3.12 a year earlier. Research Models and Services continues to face weakness in the United States, despite strength in China, leaving longer-term growth risks. CRL Q2 Key Metrics Versus Estimates

Analysts Set New Price Targets

Several equities research analysts recently weighed in on CRL shares. Sanford C. Bernstein set a $250.00 price target on shares of Charles River Laboratories International in a research report on Wednesday, July 1st. Mizuho lifted their price objective on shares of Charles River Laboratories International from $192.00 to $230.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Citigroup restated a "buy" rating on shares of Charles River Laboratories International in a research report on Wednesday, July 8th. BNP Paribas Exane set a $250.00 price target on shares of Charles River Laboratories International in a report on Wednesday, July 1st. Finally, JPMorgan Chase & Co. dropped their price target on Charles River Laboratories International from $165.00 to $160.00 and set a "neutral" rating for the company in a research report on Monday, April 13th. Eleven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $220.75.

Insider Activity at Charles River Laboratories International

In other news, Director James C. Foster sold 75,000 shares of the stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $225.00, for a total value of $16,875,000.00. Following the sale, the director directly owned 31,596 shares in the company, valued at approximately $7,109,100. This represents a 70.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Charles River Laboratories International

Hedge funds have recently bought and sold shares of the business. Jones Financial Companies Lllp boosted its stake in shares of Charles River Laboratories International by 167.6% during the first quarter. Jones Financial Companies Lllp now owns 1,715 shares of the medical research company's stock valued at $253,000 after purchasing an additional 1,074 shares during the period. Empowered Funds LLC purchased a new position in Charles River Laboratories International in the 1st quarter worth about $418,000. American Century Companies Inc. increased its stake in Charles River Laboratories International by 41.9% in the 2nd quarter. American Century Companies Inc. now owns 5,469 shares of the medical research company's stock worth $830,000 after buying an additional 1,616 shares during the period. Brown Advisory Inc. lifted its holdings in 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 valued at $354,000 after buying an additional 114 shares in the last quarter. Finally, California Public Employees Retirement System boosted its position in Charles River Laboratories International by 3.9% in the 2nd quarter. California Public Employees Retirement System now owns 84,605 shares of the medical research company's stock valued at $12,837,000 after buying an additional 3,198 shares during the period. Institutional investors 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.

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