Charles River Laboratories (CRL) Q3 2026 Earnings
Non-GAAP figure excludes a GAAP benefit totaling $245.6 million, or $5.06 per share, associated with the reversal of acquired tax reserves following newly enacted tax legislation in a foreign jurisdiction (including a $44.6 million operating benefit in DSA); GAAP diluted EPS was $6.86.
How Did CRL Stock React to Q3 2026 Earnings?
Did CRL Beat Earnings? Q3 2026 Results
Yes. Charles River Laboratories reported Q3 2026 earnings of $3.09 a share on Nov 4, 2026, beating the $2.97 consensus estimate by 4.0%. Revenue was $982.7M against a $960.4M estimate.
Charles River Laboratories delivered a stronger-than-expected third quarter of 2026, posting adjusted non-GAAP EPS of $3.09 against a consensus estimate of $2.97, a beat of roughly 3.96%, extending the company's streak of beating consensus EPS estimates to six consecutive quarters. Revenue of $982.73 million topped the $960.36 million estimate by 2.33%, even as reported sales slipped 2.2% year over year, a decline tied almost entirely to the May 2026 divestitures of the CDMO and Cell Solutions businesses. The clearest driver of outperformance was the Discovery and Safety Assessment segment, where organic revenue grew 5.9% on higher regulated safety assessment volumes and lower sourcing costs for large research models lifted non-GAAP margins to 26.8%. GAAP EPS of $6.86 was heavily influenced by a $245.60 million tax reserve reversal related to newly enacted foreign tax legislation, which the company excluded from its adjusted figures. Management raised full-year non-GAAP EPS guidance to $11.35 to $11.55 and now expects organic revenue growth of at least 1.5%, reflecting continued momentum in safety assessment demand and the margin benefit of exiting lower-margin businesses.
- Organic revenue growth of 4.7%, driven by Manufacturing (+7.4% organic) and DSA (+5.9% organic)
- Higher study volume for regulated safety assessment services
- Strong demand in Biologics Testing Solutions and Microbial Solutions
- Non-GAAP operating margin up 330 bps to 23.0% on CDMO divestiture benefit and operating leverage
- Lower sourcing costs for large research models
- Lower tax rate boosted non-GAAP EPS, up 27.2%
- GAAP results lifted by $245.6 million ($5.06/share) reversal of acquired tax reserves
- DSA net bookings and proposals showed robust year-over-year increases
“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.”
Charles River Laboratories CEO, on the earnings call
What Is Charles River Laboratories's Outlook?
Charles River raised its 2026 guidance, citing third-quarter outperformance in DSA and a lower tax rate. - **Reported revenue:** Now expected to decline (2.0)%–(1.5)%, versus (3.5)%–(2.5)% previously. - **Organic revenue growth:** Now at least +1.5%, versus 0.0%–1.0% previously. - **GAAP EPS:** $8.15–$8.35, versus $3.05–$3.35 previously, reflecting a ($5.03) reversal of acquired tax reserves. - **Non-GAAP EPS:** $11.35–$11.55, versus $11.15–$11.45 previously. - **Other assumptions:** Divestitures are expected to reduce growth by about 4.5% and FX to add 0.5%–1.0%. Restructuring and efficiency costs are now about $1.50 per share.
CRL YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $982.7M | $1.0B | −2.2% |
| Operating Income | $202.6M | $133.8M | +51.5% |
| Net Income | $333.1M | $54.4M | +512.0% |
CRL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.