CRL · Earnings call · 2026Q2T · Full report

Guidance and Outlook

CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-08-05 · Importance 69 · Surprise 68 · No source text

Management raised 2026 reported revenue guidance to a 2.5%–3.5% decline and organic revenue guidance to flat to 1% growth, a 150-basis-point improvement to the prior outlook. DSA organic revenue guidance was raised to low-single-digit growth, while Manufacturing guidance increased to low- to mid-single-digit growth; RMS guidance remains a low- to mid-single-digit decline. Full-year non-GAAP EPS guidance increased to $11.15–$11.45, representing 8%–11% year-over-year growth, and free cash flow guidance increased to $400 million–$420 million. Third-quarter guidance calls for reported revenue down approximately 4%–6%, organic growth of 1%–3%, operating-margin improvement of approximately 200 basis points sequentially, and EPS of $2.90–$3.00.

Key facts

• The company increased non-GAAP EPS guidance to a range of $11.15 to $11.45 for 2026, representing 8% to 11% year-over-year growth and a $0.25 midpoint increase to prior outlook.
• Third quarter non-GAAP EPS is expected in the range of $2.90 to $3.00, representing an approximate 20% year-over-year increase, with a $0.10 headwind from the higher tax rate included in the guidance.
• CHARLES RIVER LABORATORIES INTERNATIONAL, INC. raised its organic revenue growth rate by about 150 basis points as part of its guidance raise.
• Charles River raised its DSA outlook to low single-digit organic revenue growth in 2026.
• Updated full-year 2026 guidance expects reported revenue to decline in the range of 2.5% to 3.5% due primarily to completed divestitures, and organic revenue growth to be flat to +1%, a 150 basis point improvement to prior guidance.
• On an organic basis, the company is increasing its DSA revenue outlook to low single-digit growth for the year and adjusting manufacturing revenue outlook to a low to mid-single-digit growth rate; RMS outlook remains unchanged.
• For the third quarter, revenue is expected to decline approximately 4% to 6% on a reported basis primarily due to completed divestitures, with expected organic revenue growth of approximately 1% to 3% year-over-year.
• CHARLES RIVER LABORATORIES INTERNATIONAL, INC. expects some of the benefit from strong bookings to accrue in the second half of the year, with larger impacts into 2027.

Impact estimates