CRL · Earnings call · 2026Q2T · Full report

Income Tax Rate Changes

CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-08-05 · Importance 41 · Surprise 32 · In source text

The second-quarter non-GAAP tax rate increased 110 basis points year over year to 23.8%, primarily because of discrete items. Full-year non-GAAP tax-rate guidance increased to 23%–24%, approximately 100 basis points above the prior outlook. The higher rate is expected to reduce full-year EPS by approximately $0.20, with about half of the impact in the third quarter. The anticipated change relates to proposed tax legislation in Mauritius; if the change does not occur or has a smaller impact, EPS would benefit.

Key facts

• For the full year, Charles River now anticipates a non-GAAP tax rate in the range of 23% to 24%, an increase of approximately 100 basis points from the prior outlook, primarily due to the unfavorable second quarter rate and proposed tax legislation changes in a foreign tax jurisdiction.
• The $0.19 net benefit from the deferred compensation plan is expected not to meaningfully impact 2026 non-GAAP EPS because it will be entirely offset by a higher tax rate outlook, an approximate $0.20 headwind.
• The non-GAAP tax rate in the second quarter was 23.8%, an increase of 110 basis points year-over-year due primarily to discrete items.

Impact estimates