CRL · Charles River Laboratories International, Inc.

Charles River Laboratories delivered first-quarter 2026 results with reported revenue of $995.8 million, reflecting a 1.2% increase from $984.2 million in Q1 2025, driven by 2.8% favorable foreign currency translation, though organic revenue declined 1.5% as Manufacturing Solutions growth of 2.9% was outweighed by RMS organic decline of 5.5% (lower small and large research models in North America, partially offset by China) and DSA organic drop of 1.4% (lower discovery services post site consolidations). GAAP operating margin expanded to 12.0% from 7.6%, aided by reduced accelerated amortization on CDMO client relationships, but a $118 million loss on assets held for sale led to a GAAP net loss of $14.8 million or $(0.30) per share, versus prior-year profit of $0.50 per share. Non-GAAP operating margin contracted to 16.3% from 19.1%, pressured by higher DSA study costs, unfavorable RMS revenue mix, and elevated stock-based compensation from executive transitions; non-GAAP EPS fell 12.0% to $2.06. Segmentally, RMS revenue was $208.4 million (-2.2% reported), with non-GAAP margin down to 24.7%; DSA revenue $596.9 million (+0.7%), non-GAAP margin 21.0%; Manufacturing $190.5 million (+6.8%), non-GAAP margin up to 25.9% on restructuring savings. CEO Birgit Girshick highlighted solid DSA bookings aligning with expectations and strategic execution for improving results. The company completed its CDMO and Cell Solutions divestiture to GI Partners on May 6, 2026, expects European Discovery sites sale in May, and repurchased $200 million in shares. Guidance reaffirms organic revenue decline of (1.5)% to (0.5)% and non-GAAP EPS $10.80-$11.30, with reported revenue adjusted lower by 50 basis points for FX and GAAP EPS updated for divestiture impacts.