Charles River Laboratories Releases 2026 Financial Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy CRL?
Source: seekingalpha
- Earnings Beat: Charles River Laboratories reported a Q4 non-GAAP EPS of $2.39, exceeding expectations by $0.04, indicating stable profitability despite a 0.6% year-over-year revenue decline to $994.2 million, which still surpassed estimates by $7.22 million, showcasing the company's competitive strength in the market.
- 2026 Financial Guidance: The company projects revenue growth for 2026 to be flat to 1.5%, below the market expectation of 1.7%, reflecting potential challenges in the market environment while demonstrating a cautious approach in the face of external pressures.
- Foreign Exchange Impact: The anticipated negative impact of foreign exchange fluctuations on revenue is estimated to be between 1.0% and 1.5%, indicating that global economic uncertainties may affect the company's financial performance, particularly in international operations.
- Earnings Per Share Outlook: The company expects GAAP EPS for 2026 to range from $6.30 to $6.80, while non-GAAP EPS is projected between $10.70 and $11.20, although slightly below the consensus of $10.89, it still reflects the company's ongoing growth potential in profitability.
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Analyst Views on CRL
Wall Street analysts forecast CRL stock price to rise
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 175.690
Low
185.00
Averages
226.70
High
265.00
Current: 175.690
Low
185.00
Averages
226.70
High
265.00
About CRL
Charles River Laboratories International, Inc. is a drug development company. It provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and academic institutions around the globe accelerate their research and drug development efforts. Its Research Models and Services segment includes three businesses that provide foundational tools that enable its clients to discover new molecules: Research Models, Research Model Services, and Cell Solutions. Its Discovery and Safety Assessment segment provides regulated and non-regulated DSA services to support the research, development, and regulatory-required safety testing of potential new drugs, including therapeutic discovery and optimization plus in vitro and in vivo studies, laboratory support services, and strategic non-clinical consulting and program management to support product development. Its Manufacturing Solutions segment includes Microbial Solutions and Biologics Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Top and Bottom Performing S&P 500 Stocks in February
- Stock Market Performance: The S&P 500 remained just below the 7000 mark throughout February, indicating a period of stagnation in the stock market.
- Economic Concerns: Ongoing tariff issues and worries about the impact of artificial intelligence on the economy are contributing to the uncertainty in the stock market as March approaches.
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Charles River Laboratories Plans Business Divestitures
- Divestiture Announcement: Charles River Laboratories has announced plans to divest its Contract Development and Manufacturing Organization (CDMO) and Cell Solutions businesses, which are projected to generate $143 million in annual revenue in 2025, indicating a strategic shift in focus.
- Asset Sale Details: The divestiture will include CDMO sites in Tennessee, Maryland, and the UK, along with a Cell Solutions site in California, aimed at optimizing resource allocation and enhancing operational efficiency.
- Revenue Impact Forecast: The planned divestitures are expected to reduce reported revenue by over $200 million in 2026, resulting in a more than 50-basis-point negative impact on organic revenue growth guidance, reflecting short-term financial challenges.
- Earnings Guidance Adjustment: Despite the divestiture impacts, Charles River raised its fiscal 2026 adjusted earnings guidance to $10.80-$11.30, slightly above the consensus of $10.88, demonstrating confidence in its future profitability.
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Mizuho Lowers Target Price for Charles River Laboratories International Inc. to $175 from $215
- Price Adjustment: Mizuhō has reduced the target price for Charles River Laboratories from $215 to $175.
- Market Impact: This adjustment reflects changes in market conditions and expectations for the company's performance.
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Charles River Laboratories Q4 2025 Earnings Highlights
- Strong Financial Performance: Charles River Laboratories reported Q4 2025 revenue of $994.2 million, reflecting a 2.6% organic decline year-over-year, yet full-year revenue reached $4.02 billion, demonstrating the company's robust market position amid stabilized biopharma demand.
- Strategic Acquisition Progress: The company announced the acquisitions of K.F. (Cambodia) and PathoQuest, which are expected to enhance supply chain and testing capabilities, further solidifying its leadership in preclinical drug development and supporting future growth.
- Optimistic Outlook: For 2026, organic revenue is projected to range from down 1% to flat, with non-GAAP EPS expected between $10.70 and $11.20, reflecting cautious optimism about market demand, particularly with K.F. expected to contribute approximately $0.25 to EPS.
- Management Transition: James Foster announced his retirement effective May, with Birgit Girshick taking over to lead 2026 strategic planning, expected to drive higher operational efficiency and profit growth under new leadership.
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US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
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Stock Movements of Various Companies Analyzed
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- Moody's Earnings Beat: Moody's shares rose 6% after reporting adjusted Q4 earnings of $3.64 per share, exceeding the $3.43 expected by analysts, with revenue of $1.89 billion also surpassing the $1.86 billion consensus, and the company guiding for full-year adjusted earnings between $16.40 and $17 per share.
- Madison Square Garden Spin-off Plans: Madison Square Garden Sports saw a 13% increase in shares after announcing plans to consider spinning off its New York Knicks franchise from its New York Rangers business, potentially enhancing the market value and operational efficiency of both entities.
- Global Payments Optimistic Guidance: Global Payments shares surged 15% as the company projected earnings of $13.80 to $14 per share by the end of 2026, exceeding the $13.58 consensus, while also expecting adjusted net revenue growth of around 5%, higher than the 4.7% forecast by analysts.
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Top and Bottom Performing S&P 500 Stocks in February
- Stock Market Performance: The S&P 500 remained just below the 7000 mark throughout February, indicating a period of stagnation in the stock market.
- Economic Concerns: Ongoing tariff issues and worries about the impact of artificial intelligence on the economy are contributing to the uncertainty in the stock market as March approaches.
See More
Charles River Laboratories Plans Business Divestitures
- Divestiture Announcement: Charles River Laboratories has announced plans to divest its Contract Development and Manufacturing Organization (CDMO) and Cell Solutions businesses, which are projected to generate $143 million in annual revenue in 2025, indicating a strategic shift in focus.
- Asset Sale Details: The divestiture will include CDMO sites in Tennessee, Maryland, and the UK, along with a Cell Solutions site in California, aimed at optimizing resource allocation and enhancing operational efficiency.
- Revenue Impact Forecast: The planned divestitures are expected to reduce reported revenue by over $200 million in 2026, resulting in a more than 50-basis-point negative impact on organic revenue growth guidance, reflecting short-term financial challenges.
- Earnings Guidance Adjustment: Despite the divestiture impacts, Charles River raised its fiscal 2026 adjusted earnings guidance to $10.80-$11.30, slightly above the consensus of $10.88, demonstrating confidence in its future profitability.
See More
Mizuho Lowers Target Price for Charles River Laboratories International Inc. to $175 from $215
- Price Adjustment: Mizuhō has reduced the target price for Charles River Laboratories from $215 to $175.
- Market Impact: This adjustment reflects changes in market conditions and expectations for the company's performance.
See More
Charles River Laboratories Q4 2025 Earnings Highlights
- Strong Financial Performance: Charles River Laboratories reported Q4 2025 revenue of $994.2 million, reflecting a 2.6% organic decline year-over-year, yet full-year revenue reached $4.02 billion, demonstrating the company's robust market position amid stabilized biopharma demand.
- Strategic Acquisition Progress: The company announced the acquisitions of K.F. (Cambodia) and PathoQuest, which are expected to enhance supply chain and testing capabilities, further solidifying its leadership in preclinical drug development and supporting future growth.
- Optimistic Outlook: For 2026, organic revenue is projected to range from down 1% to flat, with non-GAAP EPS expected between $10.70 and $11.20, reflecting cautious optimism about market demand, particularly with K.F. expected to contribute approximately $0.25 to EPS.
- Management Transition: James Foster announced his retirement effective May, with Birgit Girshick taking over to lead 2026 strategic planning, expected to drive higher operational efficiency and profit growth under new leadership.
See More
US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
See More
Stock Movements of Various Companies Analyzed
- Wingstop Stock Surge: Shares of Wingstop jumped approximately 13% due to an upbeat outlook, projecting flat to low-single digit same-store sales growth for fiscal 2026, despite a 5.8% year-over-year decline in same-store sales in Q4, which was better than the expected 6.7% drop by analysts.
- Moody's Earnings Beat: Moody's shares rose 6% after reporting adjusted Q4 earnings of $3.64 per share, exceeding the $3.43 expected by analysts, with revenue of $1.89 billion also surpassing the $1.86 billion consensus, and the company guiding for full-year adjusted earnings between $16.40 and $17 per share.
- Madison Square Garden Spin-off Plans: Madison Square Garden Sports saw a 13% increase in shares after announcing plans to consider spinning off its New York Knicks franchise from its New York Rangers business, potentially enhancing the market value and operational efficiency of both entities.
- Global Payments Optimistic Guidance: Global Payments shares surged 15% as the company projected earnings of $13.80 to $14 per share by the end of 2026, exceeding the $13.58 consensus, while also expecting adjusted net revenue growth of around 5%, higher than the 4.7% forecast by analysts.
See More
