Charles River Laboratories Reports Q3 2026 Financial Results and Raises Full-Year Guidance

Charles River Laboratories (NYSE: CRL) Q3 2026 Earnings & Guidance Update

Key Financial Highlights

• Revenue: Third-quarter revenue reached $982.7 million, down 2.2% on a reported basis compared to $1,004.9 million in Q3 2025, primarily due to recent divestitures (CDMO, Cell Solutions, and certain European sites). On an organic basis, revenue grew 4.7%, marking the second consecutive quarter of positive organic revenue growth.
• Profitability:
  • GAAP Operating Margin: 20.6% (compared to 13.3% in Q3 2025), aided by a $44.6 million reversal of acquired non-income tax reserves.
  • Non-GAAP Operating Margin: 23.0%, expanding 330 basis points from 19.7% in Q3 2025, driven by operating leverage in safety assessment and portfolio rationalization.
  • GAAP EPS: $6.86 per diluted share, up from $1.10 in Q3 2025, including a $245.6 million ($5.06 per share) benefit from the reversal of acquired foreign tax reserves.
  • Non-GAAP EPS: $3.09, an increase of 27.2% from $2.43 in Q3 2025.

Segment Breakdown

• Discovery and Safety Assessment (DSA): Revenue was $596.3 million (-0.7% reported; +5.9% organic), powered by higher study volumes in regulated safety assessment. Non-GAAP operating margin expanded 140 bps to 26.8%.
• Manufacturing Solutions: Revenue was $178.9 million (-6.2% reported; +7.4% organic), reflecting healthy demand across Biologics Testing Solutions and Microbial Solutions. Non-GAAP operating margin surged to 38.6% from 26.7%.
• Research Models and Services (RMS): Revenue was $207.5 million (-2.8% reported; -0.6% organic), impacted by soft demand for small models in North America and large research models, partially offset by strength in China and Insourcing Solutions.

Updated Full-Year 2026 Guidance

Management raised full-year guidance across revenue and EPS targets, citing third-quarter outperformance in DSA and lower effective tax rates:

• Reported Revenue Growth: (2.0)% to (1.5)% (previously (3.5)% to (2.5)%)
• Organic Revenue Growth: At least +1.5% (previously 0.0% to 1.0%)
• GAAP Diluted EPS: $8.15 to $8.35 (previously $3.05 to $3.35, raised primarily due to tax reserve reversal)
• Non-GAAP Diluted EPS: $11.35 to $11.55 (previously $11.15 to $11.45, +$0.15 at midpoint)