10-Q · May 7, 2026
Charles River Laboratories reported Q1 2026 revenue of $995.8 million, exceeding estimates, but faced a significant GAAP net loss attributable to shareholders of $14.8 million due to substantial divestiture losses.…
Earnings analysis · 10-Q
CRL earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Charles River reported Q3 revenue of $982.7 million and non-GAAP EPS of $3.09, beating consensus estimates of $959.6 million and $2.97, respectively; organic revenue growth was 4.7%. Management raised 2026 non-GAAP EPS…
Read full summary
Charles River reported Q3 revenue of $982.7 million and non-GAAP EPS of $3.09, beating consensus estimates of $959.6 million and $2.97, respectively; organic revenue growth was 4.7%. Management raised 2026 non-GAAP EPS guidance to $11.35-$11.55 and organic revenue guidance to at least 1.5% growth. Earnings quality is tempered by a $245.6 million tax-reserve reversal, while unresolved securities and derivative litigation remain material risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.09
What stood out
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Revenue beat with organic growth
Q3 revenue was $982.7 million, exceeding consensus of $959.6 million by $23.1 million, or approximately 2.4%. Organic revenue growth was 4.7%.
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Non-GAAP EPS beat estimates
Q3 non-GAAP EPS was $3.09, ahead of the $2.97 consensus estimate by $0.12, or approximately 4.0%.
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Full-year EPS outlook raised
Management raised 2026 non-GAAP EPS guidance to $11.35-$11.55 from $11.15-$11.45, increasing the midpoint by $0.15.
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Organic revenue outlook improved
Organic revenue guidance was raised to at least 1.5% growth from a prior range of 0.0%-1.0%, while reported revenue growth guidance improved to (2.0)% to (1.5%) from (3.5)% to (2.5%).
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Significant buyback authorization remains
As of September 26, 2026, $700.0 million remained available under the authorized $1.0 billion share-repurchase program; no shares were repurchased under the program during the quarter.
What to watch
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Tax benefit inflates reported EPS
GAAP EPS benefited from a $245.6 million tax-reserve reversal, creating a material one-time uplift relative to underlying earnings. The Q3 non-GAAP EPS figure was $3.09, so reported GAAP and adjusted results should be distinguished.
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Securities litigation remains unresolved
The securities class action was repleaded on September 15, 2026, and the Company filed a motion to dismiss on October 15, 2026; plaintiff’s opposition is due November 16, 2026. The Company stated it cannot reasonably estimate the maximum exposure or range of possible loss.
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Derivative litigation exposure
Two derivative lawsuits concerning non-human-primate disclosures remain stayed pending resolution of the securities class-action motion to dismiss. The Company stated it cannot predict the outcome or reasonably estimate potential loss for these matters.
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No new material risk-factor changes
The 10-Q states there were no material changes to risk factors since the 2025 Form 10-K, except for the risk factor incorporated from the Q1 2026 10-Q. The filing therefore provides no new quantified operating-risk disclosure beyond the existing risk framework.
Management's outlook
Management raised 2026 non-GAAP EPS guidance to $11.35-$11.55 from $11.15-$11.45. Organic revenue guidance was raised to at least 1.5% growth from 0.0%-1.0%; reported revenue growth guidance is now (2.0)% to (1.5%), versus (3.5)% to (2.5%) previously.
Earlier filings 4
10-K · February 19, 2025
Charles River reports FY2024 revenue of $4,049,989,000 with operating income of $227,347,000 and diluted EPS of $0.20, while generating strong operating cash flow of $734,577,000 (free cash flow approx. $501,610,000…
10-Q · May 9, 2024
Charles River reported revenue of $1,011.6M for the quarter, down 1.7% year-over-year, while operating income fell 25.0% to $126.0M and operating margin compressed 380 bps to 12.5%. Performance was driven by weakness in…
10-K · February 14, 2024
Charles River (CRL) describes a strategy of offering an integrated drug discovery and non-clinical development platform across three reportable segments (RMS, DSA, Manufacturing) and augmenting organic growth with…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.