Charles River Laboratories International (NYSE:CRL) Posts Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Charles River Laboratories International (NYSE:CRL) issued its quarterly earnings results on Wednesday. The medical research company reported $3.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.77 by $0.25, Briefing.com reports. The business had revenue of $1 billion for 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 business’s revenue was down 2.7% compared to the same quarter last year. During the same period in the previous year, the business posted $3.12 earnings per share. 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 Price Performance

CRL traded up $5.01 during trading on Thursday, reaching $265.73. 1,306,808 shares of the stock were exchanged, compared to its average volume of 922,721. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.36 and a quick ratio of 1.03. The company has a market capitalization of $12.80 billion, a price-to-earnings ratio of -70.67, a P/E/G ratio of 2.61 and a beta of 1.38. Charles River Laboratories International has a 1 year low of $144.26 and a 1 year high of $268.00. The business’s 50 day moving average price is $211.45 and its two-hundred day moving average price is $188.38.

Insider Buying and Selling at Charles River Laboratories International

In other news, Director James C. Foster sold 75,000 shares of Charles River Laboratories International stock in a transaction on Monday, June 29th. The stock was sold at an average price of $225.00, for a total transaction of $16,875,000.00. Following the completion of the transaction, the director owned 31,596 shares of the company’s stock, valued at $7,109,100. The trade was a 70.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Charles River Laboratories International

Several large investors have recently modified their holdings of CRL. Mercer Global Advisors Inc. ADV lifted its position in Charles River Laboratories International by 1.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 6,316 shares of the medical research company’s stock worth $1,260,000 after buying an additional 80 shares in the last quarter. Advisory Services Network LLC increased its position in Charles River Laboratories International by 2.6% in the 3rd quarter. Advisory Services Network LLC now owns 3,226 shares of the medical research company’s stock valued at $505,000 after acquiring an additional 83 shares in the last quarter. Smartleaf Asset Management LLC raised its stake in shares of Charles River Laboratories International by 14.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 744 shares of the medical research company’s stock worth $150,000 after acquiring an additional 94 shares during the last quarter. Public Employees Retirement System of Ohio lifted its position in shares of Charles River Laboratories International by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 15,240 shares of the medical research company’s stock worth $2,384,000 after purchasing an additional 95 shares in the last quarter. Finally, Brown Advisory Inc. lifted its position in shares of Charles River Laboratories International by 5.1% during the second quarter. Brown Advisory Inc. now owns 2,333 shares of the medical research company’s stock worth $354,000 after purchasing an additional 114 shares in the last quarter. 98.91% of the stock is currently owned by institutional investors and hedge funds.

Charles River Laboratories International News Summary

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

• Positive Sentiment: JPMorgan upgraded CRL to “overweight” and raised its price target to $310 from $180, implying additional upside and signaling increased confidence in the company’s earnings recovery and demand outlook. Benzinga
• Positive Sentiment: Second-quarter results exceeded Wall Street expectations: adjusted earnings were $3.02 per share versus the $2.77 consensus, while revenue of approximately $1.0 billion topped estimates of $977.2 million. The earnings beat helped support the stock’s advance. Charles River Laboratories Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: CRL raised its 2026 outlook to EPS of $11.15–$11.45 and revenue of roughly $3.9 billion, both ahead of analyst expectations. It also increased projected free cash flow to $400 million–$420 million. Charles River 2026 Outlook
• Positive Sentiment: Management cited improving biotech demand, stronger drug-discovery order trends and anticipated margin benefits from cost reductions and divestitures. The Discovery and Safety Assessment business reportedly has a healthy backlog and book-to-bill ratio. Charles River Lifts Profit Forecast

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on CRL shares. Barclays reissued an “overweight” rating and set a $300.00 target price on shares of Charles River Laboratories International in a research note on Wednesday. Sanford C. Bernstein set a $250.00 price objective on Charles River Laboratories International in a report on Wednesday, July 1st. JPMorgan Chase & Co. upgraded Charles River Laboratories International from a “neutral” rating to an “overweight” rating and increased their price objective for the stock from $180.00 to $310.00 in a research report on Thursday. Citigroup reissued a “buy” rating on shares of Charles River Laboratories International in a report on Wednesday, July 8th. Finally, Morgan Stanley boosted their target price on shares of Charles River Laboratories International from $220.00 to $260.00 and gave the stock an “overweight” rating in a research report on Thursday, July 9th. Twelve analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $244.19.

About Charles River Laboratories International

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.