Charles River Laboratories International (NYSE:CRL) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Charles River Laboratories International (NYSE:CRL) issued its quarterly earnings data on Thursday. The medical research company reported $2.06 earnings per share for the quarter, beating analysts’ consensus estimates of $1.96 by $0.10, Briefing.com reports. The business had revenue of $995.83 million during the quarter, compared to analysts’ expectations of $977.46 million. Charles River Laboratories International had a positive return on equity of 15.36% and a negative net margin of 4.59%.The company’s revenue was up 1.2% on a year-over-year basis. During the same period in the previous year, the firm posted $2.34 earnings per share. 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 Stock Performance

Shares of Charles River Laboratories International stock traded down $3.72 on Friday, hitting $177.96. The stock had a trading volume of 978,093 shares, compared to its average volume of 805,437. The stock has a market cap of $8.78 billion, a price-to-earnings ratio of -47.33, a P/E/G ratio of 2.20 and a beta of 1.44. The company has a current ratio of 1.36, a quick ratio of 1.02 and a debt-to-equity ratio of 0.90. Charles River Laboratories International has a 52-week low of $132.58 and a 52-week high of $228.88. The company’s 50 day moving average price is $170.79 and its 200 day moving average price is $183.34.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. UBS Group increased their price target on Charles River Laboratories International from $170.00 to $175.00 and gave the company a “neutral” rating in a research report on Wednesday, February 25th. Citigroup increased their target price on Charles River Laboratories International from $200.00 to $265.00 and gave the company a “buy” rating in a report on Friday, January 16th. TD Cowen cut their price target on Charles River Laboratories International from $251.00 to $235.00 and set a “buy” rating on the stock in a research note on Friday, February 20th. Evercore reaffirmed an “outperform” rating and set a $220.00 price target on shares of Charles River Laboratories International in a report on Friday. Finally, Wall Street Zen cut Charles River Laboratories International from a “buy” rating to a “hold” rating in a research report on Saturday, February 21st. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $205.86.

Institutional Trading of Charles River Laboratories International

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC purchased a new position in shares of Charles River Laboratories International in the 4th quarter valued at approximately $42,000. Sfam LLC purchased a new stake in shares of Charles River Laboratories International during the fourth quarter worth approximately $43,000. Geneos Wealth Management Inc. lifted its holdings in shares of Charles River Laboratories International by 98.0% during the second quarter. Geneos Wealth Management Inc. now owns 293 shares of the medical research company’s stock worth $44,000 after purchasing an additional 145 shares during the period. Brown Brothers Harriman & Co. grew its position in Charles River Laboratories International by 62.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 482 shares of the medical research company’s stock valued at $75,000 after buying an additional 186 shares during the last quarter. Finally, Kestra Advisory Services LLC purchased a new position in Charles River Laboratories International in the 4th quarter valued at $109,000. 98.91% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Charles River Laboratories International

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

Charles River Laboratories International Company Profile

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.