WALTHAM, Mass. – August 5, 2026 – Leads & Copy – Charles River Laboratories International, Inc. (NYSE: CRL) announced its financial results for the second quarter ended June 27, 2026, reporting revenue of $1.00 billion and an increase in full-year guidance for both revenue and non-GAAP earnings per share. The company also highlighted strategic portfolio refinements and advancements in its digital and AI capabilities.
The second quarter saw organic revenue growth of 0.1%, marking the highest level since the third quarter of 2023. Non-GAAP operating margin improved sequentially to 20.5%, while the GAAP operating margin remained stable at 11.9%. Driven by improving demand in the Discovery and Safety Assessment (DSA) segment and strong performance in the Manufacturing Solutions segment, Charles River is increasing its 2026 revenue guidance by 150 basis points and its non-GAAP earnings per share guidance by $0.25 at the midpoint.
To strengthen its portfolio, Charles River completed the divestiture of certain European Discovery Services sites and its CDMO and Cell Solutions businesses in May 2026. In line with its strategy to deepen client relationships, the company joined Eli Lilly’s TuneLab AI/ML platform, contributing non-clinical testing expertise to optimize drug discovery. Additionally, a collaboration with Arovella Therapeutics will leverage Charles River’s in vitro Next Generation Sequencing (NGS) services to accelerate alternative cancer treatment development.
In its pursuit of modernization, Charles River launched an enhanced digital pathology solution, an AI-enabled workflow designed to digitize and automate operations, improve study turnaround times, and increase pathologist efficiency.
Revenue for the second quarter of 2026 was $1.00 billion, a slight decrease of 2.7% from $1.03 billion in the same period of 2025. On an organic basis, revenue grew 0.1%, attributed to gains in the Manufacturing Solutions and DSA segments, partially offset by a decline in the Research Models and Services (RMS) segment. GAAP net loss for the quarter was $(1.5) million, or $(0.03) per diluted share, compared to a net income of $52.3 million, or $1.06 per diluted share, in the second quarter of 2025. This decrease was primarily due to a $63.7 million loss related to the CDMO and Cell Solutions divestiture.
On a non-GAAP basis, net income was $146.2 million, a 5.0% decrease from $154.0 million in the prior year’s second quarter. Non-GAAP diluted earnings per share were $3.02, down 3.2% from $3.12 per share. The decreases were mainly driven by a lower operating margin, partially offset by investment gains from the Company’s deferred compensation plan.
Birgit Girshick, Chief Executive Officer, stated that the company made significant progress in the second quarter executing its Pathway to Purpose strategy, focusing on modernization, efficiency, and strengthening its drug development portfolio. She noted the encouraging trend of strengthening demand, particularly in the DSA segment, evidenced by the highest net book-to-bill ratio in nearly four years, and expressed confidence in capturing increased R&D spending from clients.
Segment performance varied. RMS revenue decreased by 1.8% to $209.5 million, with organic revenue down 1.4%. DSA revenue decreased 1.9% to $606.5 million, though organic revenue saw a slight increase of 0.2%. Manufacturing Solutions revenue fell 6.3% to $188.1 million, largely due to the CDMO divestiture, but organic revenue increased 1.3%, primarily from the Microbial Solutions business.
Charles River repurchased $100 million of common stock in the second quarter. For the year-to-date period, the company repurchased $300.0 million of stock. As of June 27, 2026, $700.0 million remained under its stock repurchase authorization.
The company is increasing its full-year 2026 guidance for revenue and non-GAAP earnings per share. The updated guidance reflects expected operational outperformance and the aforementioned demand trends. On a GAAP basis, earnings per share guidance is reduced due to the net loss from divestitures.
Charles River will host a webcast on August 5, 2026, at 9:00 a.m. ET to discuss these results and will host an Investor Day on September 24, 2026. Financials are presented on both GAAP and non-GAAP bases, with reconciliations provided.
Source: Charles River Laboratories International, Inc.
