Charles River Laboratories International, Inc. (CRL) Earnings Call Transcripts

Charles River Laboratories International, Inc.'s Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal year 2026, Charles River Laboratories (CRL) reported a modest organic revenue growth of 0.1%, exceeding prior guidance of a low single-digit decline. Non-GAAP earnings per share reached $3.02, up 47% sequentially and surpassing expectations of at least 30% growth. Management raised full-year guidance, now anticipating organic revenue growth of flat to 1%, driven by improved demand in the DSA segment and operational efficiencies from recent divestitures.

Reported metrics

Guidance from management

Management raised full-year guidance for organic revenue growth to flat to 1% and increased EPS guidance to $11.15 to $11.45, reflecting operational outperformance and improved demand trends.

What management said

Yes. No. So relative to the margins and what we see right now, we're expecting a minimal impact in Q3. There will be some impact but very small. The large impact will be in Q4. And so we do expect to see a very meaningful move in margins in DSA in the fourth quarter as a result of the NHPs and then being placed on studies and those direct costs going lower in Q4. And that's where we're going to see the biggest impact...

Yes. And David, you got absolutely, you're right. So just thinking through, you understand the timing of importation quarantine, getting them on study and then generating revenue. It just takes some time to import them quarantine them, acclimate them and then get them on study and generate revenue. It's just a matter of timing.

What analysts pressed on

Analysts expressed concerns regarding the sustainability of the RMS segment's performance, particularly in light of constrained spending from academic and government clients. There were also questions about the timing of AI investments translating into revenue growth and the potential impact of tax legislation changes on future earnings.

Main topics on the call

• Revenue Growth Acceleration — CRL achieved organic revenue growth of 0.1% in Q2 2026, contrasting with prior expectations of a decline. Management noted, "We firmly believe these trends position us well to drive higher organic growth during the secon...
• Strong Demand in DSA Segment — The DSA segment saw a net book-to-bill ratio of 1.2x, marking the highest level in nearly four years. Birgit Girshick stated, "We expect the DSA growth rate to accelerate in the second half of the year supported by encou...
• Margin Improvement — Operating margin improved by 420 basis points sequentially to 20.5%, attributed to divestitures and reduced margin pressures. Management expects at least 500 basis points of margin improvement in the second half of 2026.
• Increased Guidance — Management raised full-year guidance for organic revenue growth to flat to 1% from a prior estimate of a low single-digit decline. Non-GAAP EPS guidance was also increased to a range of $11.15 to $11.45, reflecting opera...

Read the full Charles River Laboratories International, Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 115 Charles River Laboratories International, Inc. earnings call transcripts on record, spanning January 14, 2020 to August 5, 2026. Based on this history, Charles River Laboratories International, Inc. reports quarterly. The most recent call on file is dated August 5, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

CRL

Exchange

NYSE

Country

US

Sector

Health Care

Industry

Life Sciences Tools and Services

Calls on record

115

First call

January 14, 2020

Most recent

August 5, 2026

Reporting cadence

quarterly