Charles River Laboratories Lifts 2026 Guidance Following Strong Q3

Charles River Laboratories International raised its full-year 2026 outlook following its third-quarter financial results. The company reported quarterly total revenue of $982.73 million and net income of US$333.07 million. Third-quarter reported revenue declined 2.2% from the prior-year period, though organic revenue grew 4.7% year over year.

International markets delivered mixed results relative to Wall Street projections. During the third quarter ended September 2026, Europe generated $240.13 million, representing 24.4% of total revenue and falling short of the $253.77 million expected by analysts. Canada contributed $120.59 million, beating expectations of $116.84 million. The Other International segment, which includes Brazil and Israel, contributed $18.73 million to top analyst projections of $10.91 million.

Operational performance varied across key business segments during the quarter. Discovery and Safety Assessment revenue rose 5.9% organically to $596 million, supported by safety assessment and bioanalysis services, with net bookings climbing 32% year over year to $652 million. Manufacturing revenue increased 7.4% organically to $179 million, while Research Models and Services slipped 0.6% organically to $208 million due to softer North American spending that offset strength in China.

Non-GAAP operating margin expanded 330 basis points year over year to 23%, and non-GAAP earnings per share rose 27.2% to $3.09. Management cited an improved tax rate, with the non-GAAP tax rate falling 550 basis points to 22.8%, and noted an earnings benefit from reversing acquired tax reserves.

For the full year 2026, Charles River Laboratories raised its GAAP EPS guidance to US$8.15 to US$8.35. The company also adjusted its non-GAAP EPS expectations to $11.35 to $11.55. Management projects reported revenue to decline 1.5% to 2% alongside organic revenue growth of at least 1.5%, while free cash flow is anticipated to reach $400 million to $420 million.