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

Charles River Laboratories International (NYSE:CRL) posted 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 negative net margin of 4.59% and a positive return on equity of 15.36%. The firm’s revenue was down 2.7% compared to the same quarter last year. During the same period in the prior year, the business posted $3.12 EPS. 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 Stock Performance

CRL stock traded up $25.99 on Wednesday, hitting $260.11. The company had a trading volume of 1,780,613 shares, compared to its average volume of 842,936. The stock has a market cap of $12.53 billion, a price-to-earnings ratio of -69.18, a P/E/G ratio of 2.61 and a beta of 1.38. The company has a current ratio of 1.36, a quick ratio of 1.03 and a debt-to-equity ratio of 0.90. Charles River Laboratories International has a 12-month low of $144.26 and a 12-month high of $267.99. The stock’s 50-day simple moving average is $211.45 and its 200 day simple moving average is $188.38.

Insider Buying and Selling at Charles River Laboratories International

In other Charles River Laboratories International news, Director James C. Foster sold 75,000 shares of the stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $225.00, for a total value of $16,875,000.00. Following the transaction, the director directly owned 31,596 shares in the company, valued at approximately $7,109,100. This trade represents a 70.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Charles River Laboratories International

Several institutional investors have recently bought and sold shares of the stock. Los Angeles Capital Management LLC purchased a new stake in shares of Charles River Laboratories International during the 4th quarter valued at about $42,000. Sfam LLC bought a new position in shares of Charles River Laboratories International during the 4th quarter valued at approximately $43,000. Geneos Wealth Management Inc. raised its holdings in Charles River Laboratories International by 98.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 293 shares of the medical research company’s stock valued at $44,000 after buying an additional 145 shares during the period. Brown Brothers Harriman & Co. raised its stake in shares of Charles River Laboratories International by 62.8% in the third quarter. Brown Brothers Harriman & Co. now owns 482 shares of the medical research company’s stock valued at $75,000 after acquiring an additional 186 shares during the period. Finally, Kestra Advisory Services LLC bought a new position in Charles River Laboratories International during the 4th quarter valued at about $109,000. 98.91% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Charles River Laboratories International

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

• Positive Sentiment: Q2 results exceeded expectations: Charles River reported adjusted earnings of $3.02 per share, above the $2.74 consensus estimate, while revenue reached approximately $1.0 billion versus expectations of $977.2 million. Charles River Laboratories Q2 CY2026 sales top estimates
• Positive Sentiment: 2026 guidance was raised: Management now expects EPS of $11.15-$11.45, ahead of the roughly $11.09-$11.05 analyst range, and revenue of about $3.9 billion versus an approximately $3.8 billion consensus. Charles River 2026 EPS and free cash flow outlook
• Positive Sentiment: Cash-flow outlook improved: Charles River raised its 2026 free-cash-flow forecast to $400 million-$420 million, while cost reductions and divestitures are expected to support margin expansion.
• Positive Sentiment: Demand indicators improved: The company cited stronger biotech demand, improving order trends, slightly positive expected organic growth, and a strong backlog and book-to-bill ratio in its Discovery and Safety Assessment business.
• Neutral Sentiment: Segment performance remains uneven: Strength in drug discovery and development services and China operations is partially offsetting weakness in U.S. Research Models and Services demand.
• Negative Sentiment: Year-over-year comparisons remain soft: Quarterly revenue declined 2.7% and EPS fell from $3.12 a year earlier, showing that the recovery is not yet broad-based. Charles River lifts profit forecast
• Negative Sentiment: Investors face execution and valuation risk: The stock has rebounded sharply, while continued U.S. weakness and longer-term business risks could limit further upside if biotech spending or order growth fails to accelerate.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Robert W. Baird set a $213.00 price objective on shares of Charles River Laboratories International in a research note on Friday, May 8th. Barclays reaffirmed an “overweight” rating and set a $300.00 price target on shares of Charles River Laboratories International in a research report on Wednesday. JPMorgan Chase & Co. cut their price objective on Charles River Laboratories International from $165.00 to $160.00 and set a “neutral” rating on the stock in a research report on Monday, April 13th. Mizuho upped their target price on Charles River Laboratories International from $192.00 to $230.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Finally, Citigroup reaffirmed a “buy” rating on shares of Charles River Laboratories International in a research note on Wednesday, July 8th. Eleven equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $225.75.

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.