Charles River raises 2026 guidance on stronger DSA and Manufacturing performance
The contract research firm posted a GAAP loss per share in the second quarter but lifted its full-year revenue and non-GAAP EPS outlook after book-to-bill improved.
Charles River Laboratories reported second-quarter 2026 results on August 5, with revenue of $1.00 billion, GAAP loss per share of $(0.03), and non-GAAP earnings per share of $3.02.1 Organic revenue growth of 0.1% reached the highest level since the third quarter of 2023.1 CEO Birgit Girshick said the demand environment continued to strengthen in the second quarter, particularly for the DSA segment, as evidenced by the highest net book-to-bill in nearly four years.1
The company raised its full-year outlook: organic revenue guidance is increasing by 150 basis points and non-GAAP earnings per share guidance by $0.25 at the midpoint.1 The company said the increase was primarily driven by improving demand trends in the DSA segment and better-than-expected performance in the Manufacturing segment.1 On a GAAP basis, the company said it is reducing its earnings per share guidance due primarily to the net loss related to the divestitures.1
On the portfolio side, Charles River completed the divestitures of certain European Discovery Services sites as well as the CDMO and Cell Solutions businesses in May 2026, as part of an effort to refine and strengthen its portfolio.1 The company also said it joined Eli Lilly's TuneLab AI/ML platform, providing non-clinical testing expertise to optimize drug discovery and advance R&D modernization efforts,1 and collaborated with Arovella Therapeutics to provide in vitro Next Generation Sequencing services added through the PathoQuest acquisition, which the company said will accelerate progress on Arovella's alternative cancer treatment approaches.1 Separately, the company introduced an enhanced digital pathology solution as part of its modernization efforts, which it said is an AI-enabled, end-to-end workflow intended to improve study turnaround times and pathologist efficiency.1
On capital return, the company repurchased $100 million of common stock in the second quarter at an average price of $174 per share.1 Year to date through June 27, 2026, it had bought back 1.7 million shares for $300.0 million total, leaving $700.0 million available under the $1.0 billion stock repurchase authorization the board approved on October 29, 2025.1 Charles River will host an Investor Day on Thursday, September 24, 2026.1
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