On November 4, 2026 Charles River Laboratories International, Inc. (NYSE: CRL) reported its results for the third quarter ended September 26, 2026.

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Key Highlights

•Reports third-quarter revenue of $982.7 million, GAAP earnings per share of $6.86, and non-GAAP earnings per share of $3.09.
•Organic revenue growth of 4.7%, outperforming the Company’s prior outlook and representing a return to organic revenue growth for the second consecutive quarter.
•Operating margin increased year-over-year, with non-GAAP operating margin increasing 330 basis points to 23.0% and GAAP operating margin increasing 730 basis points to 20.6%.
•Non-GAAP earnings per share increased 27.2% year-over-year.
•Increases 2026 guidance for revenue and non-GAAP earnings per share.
•Organic revenue guidance increasing by 100 basis points and non-GAAP earnings per share guidance increasing by $0.15 at midpoint.

•Guidance increases primarily driven by third-quarter outperformance, led by a better-than-expected performance in the DSA segment and a lower tax rate.

•Charles River unveiled its Pathway to Purpose strategic vision and Create the FutureTM initiative at its 2026 Investor Day, outlining initiatives designed to enhance operational excellence, strengthen scientific leadership, and drive long-term value creation.

•The Company advanced modernization efforts through the implementation of its Endosafe Cartridge Technology Automated Manufacturing Suite, which utilizes a fully automated production suite to increase production capacity and strengthen manufacturing controls and digital traceability. In addition, the Company partnered with Autolomous to launch Apollo OrchestrateTM, a new capability within Charles River’s Apollo platform to digitize and transform
laboratory workflows, increase efficiency, and provide greater transparency and connectivity with clients.

•Charles River has also taken steps to continue to strengthen its scientific capabilities. It recently announced an industry collaboration with the U.S. Food and Drug Administration (FDA) to validate preclinical screening tools to quantify and rank the abuse potential of new drugs.

•To further advance its Alternative Methods Advancement ProjectTM (AMAPTM) initiative, the Company introduced a new, rapid cell banking program designed to significantly accelerate product release timelines in its Biologics Testing Solutions business by incorporating in vitro next-generation sequencing capabilities into the cell bank production process. In addition, its Virtual Control Group (VCG) database and methodology will be used in an upcoming Good Laboratory Practice (GLP)-compliant safety assessment study for Ipsen.

Third-Quarter Results
Revenue was $982.7 million, a decrease of 2.2% from $1,004.9 million in the third quarter of 2025, primarily driven by the impact of the May 2026 divestitures. On an organic basis, revenue increased 4.7%, driven by revenue growth in the Manufacturing Solutions (Manufacturing) and Discovery and Safety Assessment (DSA) segments. Organic revenue growth excludes the effect of acquisitions, divestitures, and foreign currency translation.

In the third quarter of 2026, the GAAP operating margin was 20.6%, compared to 13.3% in the third quarter of 2025, driven primarily by a benefit of $44.6 million in the DSA segment from the reversal of acquired non-income tax reserves following newly enacted tax legislation and completion of certain tax requirements in a foreign jurisdiction. The GAAP net income available to common shareholders for the third quarter of 2026 was $333.1 million, or $6.86 per diluted share, compared to GAAP net income of $54.4 million, or $1.10 per diluted share for the same period in 2025. The GAAP net income and earnings per share increases included a benefit totaling $245.6 million, or $5.06 per share, associated with the reversal of acquired tax reserves following newly enacted tax legislation and completion of certain tax requirements in a foreign jurisdiction.

On a non-GAAP basis, the third-quarter operating margin increased to 23.0% from 19.7% in the third quarter of 2025, primarily as a result of the benefit of the CDMO divestiture and operating leverage from higher sales volume for safety assessment services. Non-GAAP net income was $150.1 million for the third quarter of 2026, an increase of 24.8% from $120.3 million for the same period in 2025. Third-quarter diluted earnings per share on a non-GAAP basis were $3.09, an increase of 27.2% from $2.43 per share in the third quarter of 2025. The non-GAAP net income and earnings per share increases were driven primarily by the higher operating margin and a lower tax rate.

Birgit Girshick, Chief Executive Officer, said, "In the third quarter, we were encouraged by the continued strength of the biopharmaceutical demand environment and that was reflected in our financial results. Revenue and earnings per share outperformed our prior expectations, DSA net bookings and proposals continued to show robust, year-over-year increases, and we continued to make meaningful progress towards our strategy and long-term financial targets. We see significant opportunities to continue to strengthen Charles River’s position as a leading scientific partner for regulated testing across the drug development continuum. Through our Pathway to Purpose strategy, we are building a more agile, client-centric organization that will deepen client relationships, expand engagement across our portfolio, and increase our share of R&D spend as demand trends continue to improve."
Third-Quarter Segment Results
Discovery and Safety Assessment (DSA)
Revenue for the DSA segment was $596.3 million in the third quarter of 2026, a decrease of 0.7% from $600.7 million in the third quarter of 2025, primarily driven by the divestiture of certain European Discovery Services sites. Organic revenue increased by 5.9%, driven primarily by higher study volume for regulated safety assessment services.

In the third quarter of 2026, the DSA segment’s GAAP operating margin increased to 28.9% from 20.5% in the third quarter of 2025. The increase was primarily driven by the reversal of acquired non-income tax reserves. On a non-GAAP basis, the operating margin increased to 26.8% from 25.4% in the third quarter of 2025. The non-GAAP operating margin increase was primarily driven by operating leverage from higher study volume for regulated safety assessment services, as well as lower sourcing costs for large research models.

Manufacturing Solutions (Manufacturing)

Revenue for the Manufacturing segment was $178.9 million in the third quarter of 2026, a decrease of 6.2% from $190.7 million in the third quarter of 2025, primarily driven by the CDMO divestiture. Organic revenue increased 7.4%, driven by strong demand in both the Biologics Testing Solutions and Microbial Solutions businesses.
The Manufacturing segment’s GAAP operating margin was 35.7%, compared to 20.9% in the third quarter of 2025. On a non-GAAP basis, the operating margin increased to 38.6% from 26.7% in the third quarter of 2025. The GAAP and non-GAAP increases were driven primarily by the benefit of the CDMO divestiture.
Research Models and Services (RMS)
Revenue for the RMS segment was $207.5 million in the third quarter of 2026, a decrease of 2.8% from $213.5 million in the third quarter of 2025, primarily driven by the Cell Solutions divestiture. Organic revenue decreased by 0.6%, due primarily to lower revenue for small research models in North America and for large research models. The decline was partially offset by higher revenue for small research models in China and for research model services, particularly the Insourcing Solutions business.

In the third quarter of 2026, the RMS segment’s GAAP operating margin increased to 19.9% from 16.2% in the third quarter of 2025, primarily due to lower costs related to the Cell Solutions divestiture and restructuring initiatives. On a non-GAAP basis, the operating margin decreased to 24.4% from 25.0%. The non-GAAP operating margin decrease was primarily driven by the impact of an unfavorable revenue mix, both geographically and related to large research models.

2026 Guidance Update
The Company is increasing its 2026 revenue and earnings per share guidance, which was last updated on August 5, 2026. This increase primarily reflects the third-quarter outperformance, which was principally driven by the better-than-expected performance in the DSA segment and a lower tax rate. On a GAAP basis, the Company is also increasing its earnings per share guidance, due primarily to the third-quarter benefit associated with the reversal of acquired tax reserves.

(Press release, Charles River Laboratories, NOV 4, 2026, View Source [SID1234674161])