Company | Charles River Laboratories International, Inc. |
Ticker | CRL (NYSE) |
Upcoming Earnings Date | August 5, 2026 — 9:00 AM ET (Q2 2026 Earnings Call) |
Reporting Period | Q2 2026 (quarter ended June 30, 2026) |
Preparation Date | August 4, 2026 |
Sector / Sub-Sector | Healthcare / Life Sciences Tools & Services (CRO / Preclinical) |
Key Takeaway: The setup is cautiously constructive — consensus is a manageable bar, management guided explicitly to ≥30% sequential EPS growth from Q1's $2.06, and the biggest swing factor is whether DSA margins recover as promised as discrete Q1 headwinds (NHP sourcing costs, CEO-transition stock comp) fully subside.
Heading into Q2 2026, the bar for CRL is achievable but not trivial: consensus sits at roughly $2.75 in operating EPS and ~$980M in revenue, both implying modest year-over-year declines that management's own guidance already frames as the trough. Management's posture has shifted meaningfully since the Q1 print — new CEO Birgit Girshick and CFO Glenn Coleman have been explicit that Q2 will see at least 30% sequential EPS improvement from Q1's $2.06, driven by the abatement of three discrete headwinds: elevated NHP sourcing costs, CEO-transition stock compensation, and NHP shipment timing in RMS. Estimate revisions have been broadly stable since the May 7 earnings call, with the Q2 consensus EPS drifting only marginally from $2.75 to $2.75 — suggesting the street has largely accepted management's bridge and is not pricing in incremental upside. The stock has rallied ~29% since the Q1 print (from $181.68 to ~$234), compressing the valuation cushion and raising the bar for a positive reaction; at ~19.6x NTM P/E, the multiple has re-rated meaningfully and leaves less room for disappointment. The single biggest wildcard is the DSA book-to-bill and backlog trajectory: if Q2 net book-to-bill holds above 1.0x for a third consecutive quarter and biotech net bookings remain at multi-year highs, it would validate the demand recovery thesis and likely drive further multiple expansion; a slip below 1.0x would be the most likely catalyst for a sharp reversal.
Key Takeaway: Consensus is a manageable bar — the street is modeling a low-single-digit organic revenue decline consistent with guidance, and the bigger swing factor is DSA operating margin recovery and the book-to-bill ratio, not the revenue line itself. A Q2 EPS print above ~$2.75 with a book-to-bill above 1.0x would likely be the combination needed to sustain the stock's recent momentum.
KPI | Q1 2026 Actual | Q2 2025 Actual (Prior Year) | Q2 2026 Consensus Estimate | YoY Change | Guidance | Consensus vs. Guidance |
Total Revenue ($M) | $995.8 | $1,032.1 | $979.9 | −5.1% | Mid-to-high single-digit reported decline YoY; low single-digit organic decline | In line with guidance midpoint |
DSA Revenue ($M) | $596.9 | $618.0 | $592.1 | −4.2% | Low-to-mid single-digit reported decline | In line |
RMS Revenue ($M) | $208.4 | $213.3 | $202.3 | −5.2% | Mid-single-digit reported decline | In line |
Manufacturing Revenue ($M) | $190.5 | $200.8 | $186.7 | −7.0% | Mid-single-digit reported decline (CDMO divestiture impact) | In line |
Diluted EPS — Operating ($) | $2.06 | $3.12 | $2.75 | −11.9% | ≥30% sequential improvement from Q1 ($2.06); implies ≥$2.68 | +~2.6% above implied floor |
Adjusted EBITDA ($M) | $204.0 | $272.5 | $244.9 | −10.1% | Operating margin +120–150 bps FY; H2 >500 bps above H1 | Consistent with H2 ramp narrative |
DSA Net Book-to-Bill (x) | 1.04x | 0.84x | ~1.00x (consensus range) | +19 bps YoY | Average above 1.0x for full year | At guidance floor |
Net Bookings ($M) | $622.0 | $506.0 | $606.4 | +19.8% | >$600M threshold | Slightly above threshold |
Free Cash Flow ($M) | −$14.8 | $169.3 | $128.3 | −24.2% | FY $375–$400M | Tracking to FY guidance |
Sources: Visible Alpha Consensus and Actuals Data (Total Revenue, DSA Revenue, RMS Revenue, Manufacturing Revenue, Diluted EPS — Operating, Adjusted EBITDA, Net Bookings, Free Cash Flow); CRL Q1 2026 Earnings Release and Transcript (May 7, 2026) for guidance ranges and book-to-bill actuals.
Quarter | KPI | Reported | Consensus | Surprise % | Result |
Q3 2024 | Operating EPS | $2.59 | $2.42 | +7.0% | Beat |
Q3 2024 | DSA Revenue | $615.1M | $584.5M | +5.2% | Beat |
Q4 2024 | Operating EPS | $2.66 | $2.52 | +5.6% | Beat |
Q4 2024 | DSA Revenue | $603.3M | $572.7M | +5.3% | Beat |
Q1 2025 | Operating EPS | $2.34 | $2.12 | +10.4% | Beat |
Q1 2025 | DSA Revenue | $592.6M | $550.6M | +7.6% | Beat |
Q2 2025 | Operating EPS | $3.12 | $2.50 | +24.9% | Beat |
Q2 2025 | DSA Revenue | $618.0M | $590.4M | +4.7% | Beat |
Q3 2025 | Operating EPS | $2.43 | $2.37 | +2.5% | Beat |
Q3 2025 | DSA Revenue | $600.7M | $593.1M | +1.3% | Beat |
Q4 2025 | Operating EPS | $2.39 | $2.36 | +1.3% | Beat |
Q4 2025 | DSA Revenue | $591.6M | $579.2M | +2.1% | Beat |
Q1 2026 | Operating EPS | $2.06 | $1.95 | +5.6% | Beat |
Q1 2026 | DSA Revenue | $596.9M | $589.2M | +1.3% | Beat |
Pattern: CRL has beaten operating EPS consensus in each of the last 8 quarters, with the magnitude of beats narrowing from double-digit surprises in 2025 to low-single-digit surprises in recent quarters — suggesting the street has gotten better at modeling the business, and incremental upside will require genuine operational outperformance rather than simply clearing a low bar. DSA revenue beats have been consistent but also narrowing, consistent with a more stable demand environment.
Source: Visible Alpha Consensus and Actuals Data.
Key Takeaway: Guidance has been stable since the Q1 print — organic revenue and EPS ranges were reaffirmed on May 7 and again on June 2 at the William Blair and Jefferies conferences — but the tone has shifted more constructive as new CEO Girshick has provided a clearer margin bridge and expressed confidence in H2 acceleration. No formal guidance revision has been issued post-Q1.
Metric | Initial Guidance (Q1 2026 Earnings — May 7, 2026) | Revised Guidance | Current Consensus | Note |
FY 2026 Organic Revenue Growth | (1.5)% to (0.5)% | — | Tracking to guidance | Reaffirmed at June 2 conferences; unchanged |
FY 2026 Reported Revenue Growth | (5.5)% to (4.0)% | — | $3.851B consensus | Reduced 50 bps at Q1 for FX; no further change |
FY 2026 Non-GAAP EPS | $10.80 – $11.30 | — | $11.08 consensus | Reaffirmed; consensus at midpoint; ~5–10% growth over 2025 |
Q2 2026 Operating EPS | ≥30% sequential improvement from Q1 ($2.06) → implies ≥$2.68 | — | $2.75 consensus | Consensus ~2.6% above implied floor; management confident in sequential recovery |
Q2 2026 Organic Revenue | Low single-digit decline YoY (similar to Q1) | — | ~(2)% organic implied | Consistent with guidance; divestiture impact ~5% on reported |
FY 2026 Operating Margin | +120 to +150 bps YoY; H2 >500 bps above H1 | — | Tracking to guidance | Divestitures + KF Cambodia + cost savings are principal drivers |
FY 2026 Free Cash Flow | $375M – $400M | — | $441M consensus | Consensus above guidance range; reflects divestiture proceeds and lower capex |
DSA Book-to-Bill (FY avg) | Cautiously optimistic average above 1.0x for full year | — | ~1.00x consensus | Q1 was 1.04x; Q2 must hold above 1.0x to validate thesis |
Source: CRL Q1 2026 Earnings Release and Transcript (May 7, 2026); CRL Conference Announcement (June 1, 2026); Visible Alpha Consensus Data.
Key Takeaway: Estimates have been remarkably stable since the Q1 print — Q2 EPS consensus has barely moved from $2.75 and FY EPS sits at $11.08, squarely in the middle of the $10.80–$11.30 guidance range. The lack of upward revision despite improving peer data-points (IQVIA, Medpace, ICON all raised guidance) suggests the street is waiting for CRL to demonstrate the margin recovery before pricing it in — which creates asymmetric upside if Q2 margins deliver as promised.
KPI (Period) | Estimate ~5 Days Post Q1 Earnings (as of ~May 14, 2026) | Current Consensus (Aug 4, 2026) | Estimate Δ (%) | Initial Guidance (May 7, 2026) | Current Guidance | Guidance Δ | Consensus vs. Guidance (%) |
Operating EPS (Q2 2026) | $2.75 | $2.75 | 0.0% | ≥$2.68 (implied floor: ≥30% seq. from $2.06) | Unchanged | — | +2.6% above floor |
Total Revenue (Q2 2026) | $976.4M | $979.9M | +0.4% | Mid-to-high single-digit reported decline | Unchanged | — | In line |
DSA Revenue (Q2 2026) | $586.1M | $592.1M | +1.0% | Low-to-mid single-digit reported decline | Unchanged | — | In line |
Operating EPS (FY 2026) | $11.06 | $11.08 | +0.2% | $10.80 – $11.30 | Unchanged | 0.0% | +0.2% above midpoint ($11.05) |
Total Revenue (FY 2026) | $3,845M | $3,851M | +0.2% | (5.5)% to (4.0)% reported | Unchanged | 0.0% | In line with midpoint |
Adjusted EBITDA (Q2 2026) | $244.3M | $244.9M | +0.2% | H2 >500 bps above H1 operating margin | Unchanged | — | Consistent with H2 ramp |
Estimates have been essentially flat since the Q1 print, with Q2 EPS consensus unchanged at $2.75 and FY EPS at $11.08 (midpoint of guidance). The absence of upward revisions despite positive peer read-throughs from IQVIA, Medpace, and ICON — all of which raised guidance — suggests the street is applying a ‘show me’ posture on CRL's margin recovery. A clean Q2 delivery with DSA margin expansion and book-to-bill above 1.0x could catalyze the first meaningful upward revision cycle since the demand recovery began.
Source: Visible Alpha Consensus and Actuals Data (as-of dates May 14, 2026 and August 4, 2026); CRL Q1 2026 Earnings Transcript.
Key Takeaway: CRL has dramatically outperformed both XBI and the S&P 500 since the Q1 print (+28.9% vs. +13.6% for XBI and +5.4% for SPY), driven almost entirely by multiple re-rating (NTM EV/EBITDA expanded from ~9.9x to ~13.3x over 3 months) rather than estimate revisions, which have been flat. The stock has priced in a significant portion of the recovery thesis, raising the execution bar for Q2.
Since the Q1 2026 earnings print on May 7, 2026, CRL has risen from $181.68 to $234.12 as of August 4, 2026 — a gain of +$52.44 / +28.9%. Over the same period, XBI (SPDR S&P Biotech ETF, the most relevant sector proxy for CRL's client base) gained +13.6% (from $133.66 to $151.88), and the S&P 500 (SPY) gained +5.4% (from $731.58 to $771.33). CRL's outperformance of ~+23 percentage points vs. XBI and ~+23 percentage points vs. SPY reflects a re-rating of the demand recovery thesis, driven by the Q1 beat, the CDMO/Cell Solutions divestiture close (May 6), the European discovery site divestiture close (May 22), and improving peer commentary from IQVIA, Medpace, and ICON. The stock's 3-month NTM EV/EBITDA multiple expanded from ~9.9x to ~13.3x, accounting for the vast majority of price appreciation — earnings revisions contributed minimally. Key events during the period include: the CDMO divestiture close (May 6), European discovery site divestiture close (May 22), William Blair and Jefferies conference presentations (June 2–3), and guidance reaffirmation on June 2.
Chart: CRL vs. XBI vs. SPY — Indexed to 100 at May 7, 2026 (Q1 2026 Earnings Date)
Date | CRL (Indexed) | XBI (Indexed) | SPY (Indexed) |
May 7, 2026 (Base) | 100.0 | 100.0 | 100.0 |
May 15, 2026 | 83.0 | 97.8 | 101.0 |
May 28, 2026 (Divestiture close ~May 22) | 99.8 | 101.7 | 103.1 |
Jun 2, 2026 (William Blair / Jefferies conf.) | 100.2 | 99.9 | 103.7 |
Jun 24, 2026 | 111.2 | 112.0 | 100.2 |
Jun 30, 2026 | 124.8 | 118.4 | 102.1 |
Jul 21, 2026 (DHR -14% on weak Q3 guide) | 120.8 | 115.6 | 102.3 |
Jul 28, 2026 | 132.3 | 112.1 | 101.3 |
Aug 4, 2026 (Current) | 128.9 | 113.6 | 105.4 |
Valuation Context: CRL's NTM EV/EBITDA has expanded from ~9.9x (3 months ago) to ~13.3x currently, accounting for the bulk of the +35.9% 3-month price gain. NTM P/E stands at ~19.6x. The multiple re-rating reflects improved confidence in the demand recovery and margin bridge, but leaves the stock more vulnerable to any execution miss on Q2 margins or book-to-bill.
Source: Yahoo Finance Stock Price Data; Stock Performance Decomposition Data (NTM multiples).
Key Takeaway: Peer commentary from Q2 2026 earnings reports is broadly positive for CRL — IQVIA, ICON, Medpace, Labcorp, and Revvity all reported improving demand, strong book-to-bills, and raised guidance, with biotech funding at record levels ($35B in Q2 per IQVIA). The one cautionary note is Danaher's weak Q3 guide (life sciences tools demand recovery ‘pushed further out’), which is a partial offset but less directly relevant to CRL's preclinical services business.
Note: Only commentary from Q2 2026 earnings reports and forward-looking statements made after May 7, 2026 (CRL's last earnings date) are included below. Prior-quarter results commentary has been excluded.
Peer | Report Date | Key Commentary (Q2 2026 / Forward-Looking) | Signal for CRL | Relevance | Caveats |
IQVIA (IQV) | Jul 28, 2026 | Q2 2026 biotech/pharma funding hit $35B — more than double Q2 2025. RFP flow grew double-digits YoY and sequentially across all client segments. Book-to-bill of 1.22x on $3.15B net new bookings (+19.3% YoY). Raised FY guidance by ~100 bps organic. Clients say AI in discovery will ‘double their study portfolio’ and are asking CROs to gear up capacity. IQVIA completed acquisition of Charles River assets in Q2 and is expanding into early development. | Strongly Positive | Very High — IQVIA is CRL's closest large-cap CRO peer; biotech funding at record levels directly drives CRL's preclinical demand pipeline | IQVIA's acquisition of CRL assets signals increased competition in early development; IQVIA's AI capabilities may differentiate it from CRL in some client conversations |
ICON (ICLR) | Jul 29–30, 2026 | Q2 gross business wins of $3.7B (+24% YoY, +13% seq). Net book-to-bill of 1.51x; direct fee book-to-bill of 1.2x. RFP flow +22% sequentially and +16% TTM. Biotech demand ‘accelerated pretty markedly’ in Q2; midsized and biotech companies were 8 of top 10 customers by awards. Phase III opportunities rose to ~50% of total volume (vs. ~40% a year ago). Biotech proposals including lab services jumped from high-50s% to mid-70s%. | Strongly Positive | High — ICON's biotech demand acceleration and rising lab service inclusion in proposals directly read through to CRL's DSA and manufacturing segments | ICON is a clinical CRO; its demand signals are for Phase I–IV, which is downstream of CRL's preclinical work. Lead times mean current ICON bookings may not translate to CRL revenue for 12–18 months |
Medpace (MEDP) | Jul 22, 2026 | Q2 2026 revenue +17.2% YoY to $707.3M. Net new business awards +28.2% YoY to $795.7M; book-to-bill of 1.13x. Backlog grew 4.9% YoY to $3.01B. Raised FY 2026 revenue guidance to $2.805–$2.885B (+10.9–14.0% growth). Strong double-digit growth signals sustained demand for outsourced R&D services. | Positive | High — Medpace is a pure-play CRO with heavy biotech exposure; strong bookings and raised guidance confirm healthy R&D outsourcing environment | Medpace is Phase I–IV clinical; no direct read on preclinical pricing or NHP costs. Medpace's client mix skews smaller biotech, which is still tepid for CRL's startup segment |
Labcorp (LH) | Jul 30, 2026 | Biopharma Lab Services Q2 organic revenue +6.2% YoY; Central Labs +9.8%. TTM book-to-bill of 1.03x; backlog of $8.73B. Raised FY biopharma revenue growth guidance to 5.5–6.5% (from 3.8–5.4%). CEO cited ‘continued momentum across the business.’ Early Development revenue was down 1.4% in Q2. | Mixed / Positive | Medium-High — Labcorp's biopharma lab services growth and raised guidance confirm healthy end-market; Central Labs strength is positive for CRL's manufacturing/biologics testing | Early Development revenue down 1.4% is a mild negative read-through for CRL's DSA segment; Labcorp cited ‘strategic actions’ as the driver, suggesting idiosyncratic rather than market-driven |
Revvity (RVTY) | Aug 4, 2026 | Third consecutive quarter of improving pharma/biotech end-market conditions. Raised FY organic growth guidance from 3–4% to 4–5%. High-content screening instruments saw double-digit order growth with order velocity outpacing production capacity. Backlog at strongest level in 3–4 years. CEO: ‘pharma and biotech customers are beginning to return to more normalized patterns.’ AI driving demand for lab-based data generation and preclinical R&D tools. | Positive | High — Revvity's instruments feed directly into preclinical workflows; improving pharma/biotech spending and AI-driven lab demand are direct tailwinds for CRL's DSA segment | Revvity sells instruments/reagents, not services; its demand signals lead CRL's revenue by 6–12 months. Guidance conservatism noted: ‘not anticipating further acceleration’ beyond current trends |
Danaher (DHR) | Jul 21, 2026 | Q2 EPS beat ($1.94 vs. $1.84 est.) but stock fell 11–14% — worst day since 2001. Q3 core revenue growth guided to 2–3% (vs. ~4–5% expected); FY narrowed to 3–4% from 3–6%. CEO noted growth reacceleration ‘pushed further out.’ Morgan Stanley called results ‘underwhelming’ and characterized the move as reflecting ‘stop-start nature of sector optimism.’ | Cautionary | Medium — DHR's life sciences tools business overlaps with CRL's end-market; weak Q3 guide suggests the broader life sciences recovery is uneven and not yet broad-based | DHR is primarily instruments/equipment (Bioprocess, Life Sciences); CRL's services business has different demand dynamics. DHR's weakness may reflect capital equipment cycle, not services outsourcing |
West Pharma (WST) | Jul 23, 2026 | Q2 net sales +12.7% organic; High Value Product Components drove growth on strong biologics demand and GLP-1 elastomers. Raised FY EPS guidance to $8.85–$9.05 from $8.40–$8.75. Strong biologics demand and GLP-1 pipeline activity are key drivers. | Positive | Medium — Strong biologics and GLP-1 demand reads through to CRL's biologics testing (Manufacturing segment) and safety assessment for GLP-1 programs | WST is a packaging/delivery component supplier; its demand reflects commercial-stage biologics, not early-stage preclinical. Less direct read-through to CRL's DSA bookings |
Synthesis: The weight of peer evidence from Q2 2026 reporting is clearly positive for CRL. IQVIA's $35B biotech funding figure (2x Q2 2025) is the single most important data point — it directly validates CRL's thesis that biotech demand is recovering and that the book-to-bill should hold above 1.0x. ICON's observation that biotech proposals including lab services jumped from the high-50s% to mid-70s% is a direct positive for CRL's integrated service model. Revvity's third consecutive quarter of improving pharma/biotech conditions and record instrument backlog suggests the preclinical R&D environment is genuinely improving. The only meaningful cautionary note is Danaher's weak Q3 guide, but this reflects capital equipment cycle dynamics rather than services outsourcing demand, making it less directly applicable to CRL.
Sources: IQVIA Q2 2026 Earnings Call Transcript (Jul 28, 2026); ICON Q2 2026 Earnings Call Transcript (Jul 29–30, 2026); Medpace Q2 2026 Earnings Release (Jul 22, 2026); Labcorp Q2 2026 Earnings Release (Jul 30, 2026); Revvity Q2 2026 Earnings Call Transcript (Aug 4, 2026); Danaher Q2 2026 Earnings (Jul 21, 2026); West Pharma Q2 2026 Earnings Release (Jul 23, 2026).
Key Takeaway: The most important development since Q1 earnings is the completion of both the CDMO/Cell Solutions and European Discovery site divestitures — these are the principal drivers of the H2 2026 margin expansion that management has guided to, and their clean execution removes a key execution risk heading into Q2.
Sources: CRL Q1 2026 Earnings Release and Transcript (May 7, 2026); CRL Conference Announcement (June 1, 2026); CRL Q2 Earnings Scheduling Press Release (July 15, 2026); Daily News Digest (various dates May–August 2026); IQVIA Q2 2026 Earnings (July 28, 2026); Revvity Q2 2026 Earnings (August 4, 2026).
Key Takeaway: The only notable insider transaction since the Q1 print is a large planned sale by former CEO James Foster (75,000 shares, ~$17M, executed June 29 under a 10b5-1 plan). This is obligation-driven and not a discretionary signal — Foster retired in May 2026 and this sale is consistent with post-retirement equity liquidation. No open-market buys or discretionary sales by current management have been filed.
Name | Title | Transaction Type | Shares | Est. Value | Transaction Date | Note |
James C. Foster | Director (Former CEO, retired May 2026) | 10b5-1 Planned Sale | 75,000 | ~$16.9M (est. at ~$225/share) | June 29, 2026 | Pre-planned 10b5-1 sale; obligation-driven post-retirement equity liquidation. Not a discretionary signal. 31,596 shares retained after transaction. |
No open-market buys or discretionary sales by current management (CEO Birgit Girshick, CFO Glenn Coleman, or other active executives) have been filed in the period since the Q1 2026 earnings print. The absence of insider buying by new management is not unusual given the CEO and CFO are both newly appointed (May and April 2026, respectively) and likely subject to trading blackout periods and onboarding restrictions. The absence of discretionary selling by current management is a mild positive signal.
Source: SEC Form 4 Filings / Insider Transaction Data (filing date window: May 7, 2026 – August 4, 2026).