Charles River zvýšila výhled ne-GAAP EPS pro rok 2026 na 11,15–11,45 USD z 10,80–11,30 USD. Tržby mají nově klesnout o 3,5 % až 2,5 % místo dřívějších 5,5 % až 4 %.
A month has gone by since the last earnings report for Charles River Laboratories (CRL - Free Report) . Shares have added about 10.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Charles River due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Charles River Laboratories International, Inc. before we dive into how investors and analysts have reacted as of late.
CRL Q2 Earnings and Revenues Top, '26 View UpCharles River reported second-quarter 2026 company-defined non-GAAP earnings of $3.02 per share, down 3.2% year over year. The reported earnings topped the Zacks Consensus Estimate by 11.0%.
GAAP net loss was 3 cents per share compared to GAAP earnings of $1.06 per share in the year-ago period.
Revenues of $1 billion declined 2.7% (up 0.1% organically) year over year but beat the Zacks Consensus Estimate by 3%.
Charles River's DSA Business Shows Demand GainsDSA revenues totaled $606.5 million, down 1.9% year over year on a reported basis. Organic revenues increased 0.2%, driven mainly by higher study volume for regulated safety assessment services.
The segment's GAAP operating margin rose 60 basis points to 20.5%, aided by lower intangible-asset amortization and reduced third-party legal costs tied to a non-human primate supply matter. The non-GAAP margin fell 180 basis points to 25.6% because of higher study-related direct costs.
CRL's RMS Sales Decline on North America WeaknessRMS revenues totaled $209.5 million, down 1.8% from the year-ago quarter’s level. Organic revenues declined 1.4% primarily due to lower sales of small research models in North America and weaker research model services, partly offset by growth in China.
The segment's GAAP operating margin improved 50 basis points to 17.3%, mainly because of lower amortization following the Cell Solutions divestiture. The non-GAAP margin contracted 80 basis points to 24.5% on lower volume and an unfavorable geographic revenue mix.
Charles River's Manufacturing Margins ExpandManufacturing revenues amounted to $188.1 million, down 6.3% year over year, mainly because of the CDMO divestiture. Organic revenues rose 1.3%, supported by higher revenues in the Microbial Solutions business.
GAAP operating margin surged to 34.9% from 6% a year earlier. The non-GAAP margin expanded 500 basis points to 37.8%, with the CDMO business and the benefit from its divestiture driving the improvement.
CRL's Margin PerformanceThe gross profit in the reported quarter was $363.4 million, up 1.8% from the prior-year quarter’s level. The gross margin of 36.2% expanded approximately 159 basis points (bps) year over year.
Selling, general and administrative expenses increased 19.5% year over year to $228.9 million. Operating profit totaled $119.9 million, up 19.7% from the prior-year quarter’s level. The operating margin expanded approximately 224 bps to 11.9%.
CRL's Cash Flow and Buyback ActivityCash and cash equivalents amounted to $192 million as of June 27, 2026, compared with $191.8 million at the end of the first quarter. Cumulative net cash provided by operating activities at the end of the quarter was $220.8 million compared with $376.3 million a year ago.
CRL repurchased 0.6 million shares for $100 million during the second quarter at an average price of $174 per share. Year-to-date repurchases totaled $300 million, leaving $700 million available under the company's authorization.
Charles River Raises Its 2026 OutlookCharles River now expects reported revenues to decline 3.5% to 2.5% in 2026, compared with its prior projection for a 5.5% to 4% decrease. The Zacks Consensus Estimate for 2026 revenues implies a decline of 3% year over year.
The company raised its non-GAAP earnings guidance to $11.15-$11.45 per share from $10.80-$11.30. The Zacks Consensus Estimate for the metric is pegged at $11.28 per share.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM ScoresCurrently, Charles River has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Charles River has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerCharles River is part of the Zacks Medical Services industry. Over the past month, HCA Healthcare (HCA - Free Report) , a stock from the same industry, has gained 0.1%. The company reported its results for the quarter ended June 2026 more than a month ago.
HCA reported revenues of $20.23 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $7.59 for the same period compares with $6.84 a year ago.
HCA is expected to post earnings of $6.80 per share for the current quarter, representing a year-over-year change of -2.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for HCA. Also, the stock has a VGM Score of B.
Charles River oznámil, že DSA bookingy mezikvartálně vzrostly o 12,6 % na 701 milionů USD a backlog se zvýšil na 1,97 miliardy USD. RMS naopak v roce 2026 očekává nízký až středně jednociferný pokles.
Key Takeaways Charles River is sharpening its portfolio while expanding capacity in areas of strong client demand.Charles River's DSA bookings rose 12.6% sequentially, with backlog reaching $1.97 billion in Q2 2026.CRL expects a low-to-mid-single-digit 2026 RMS decline as North American research-model volumes weaken. Charles River Laboratories International, Inc. (CRL - Free Report) is well-poised to grow in the coming quarters owing to its strong research-model position, improving demand trends and flexible vivarium solutions. The company is streamlining its portfolio while expanding capacity in areas of strong demand. The Discovery and Safety Assessment (“DSA”) segment is also showing improving demand, bookings and backlog, supporting its growth prospects. Yet mixed demand trends and NHP-related cost volatility remain key risks.
Over the past year, this Zacks Rank #2 (Buy) stock has surged 79% compared with the industry’s 11.2% rise and the S&P 500 composite’s 22.2% growth.
The renowned, non-clinical global drug development company has a market capitalization of $13.92 billion. Charles River has an earnings yield of 3.9%. The company surpassed earnings estimates in each of the trailing four quarters, delivering an average surprise of 5.9%.
Let’s delve deeper.
Upsides for CRL StockStrategic Deals Drive Growth: Charles River has completed the divestitures of its Contract Development and Manufacturing Organization and Cell Solutions businesses and certain European Discovery Services sites, sharpening the portfolio around regulated testing and manufacturing quality-control capabilities. At the same time, the company is investing in areas where client demand remains strong. It has five lab-science expansions under way globally, including new bioanalytical capacity at Heriot-Watt University’s Research Park in Scotland. Management noted that lab-science demand has increased over the past five years, supported by large-molecule bioanalysis, biomarkers and added testing requirements across regulated, nonregulated and clinical-development programs.
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RMS’ Prospects Seem Bright: Charles River continues to hold a leading position in research models, supported by a broad product and service offering. In the second quarter of 2026, RMS organic revenues declined 1.4%, an improvement from the 5.5% decrease in the first quarter as NHP shipment timing normalized. Lower small-model demand in North America and softer research model services were partly offset by continued demand from mid-tier biotech and Clinical Research Organization clients in China. The Charles River Accelerator and Development Lab model continues to offer clients flexible vivarium capacity without requiring internal infrastructure, preserving a capital-efficient value proposition as clients manage research spending.
DSA, A Potential Growth Driver: Charles River remains a leading provider of outsourced discovery, non-clinical development and regulated safety testing services. In the second quarter of 2026, DSA organic revenues increased 0.2%, its first organic growth since the third quarter of 2023. Net bookings rose 12.6% sequentially to $701 million, backlog increased to $1.97 billion, and net book-to-bill reached 1.19X, marking the third consecutive quarter above 1X and the highest level in nearly four years. The improvement was broad-based across global biopharma and small and midsized biotech clients.
The Cambodia and Mauritius NHP supply assets also support availability for complex biologics work, while lower Cambodian sourcing costs are expected to begin benefiting DSA margins in the third quarter and contribute more in the fourth quarter.
What Ails Charles River?Uneven Demand Recovery: Charles River’s demand environment is recovering, but the pace remains uneven across client groups and end markets. In the second quarter of 2026, small and midsized biotech revenues were essentially flat organically, while global biopharma revenues increased organically. Management continues to expect a low-to-mid-single-digit organic revenue decline in RMS for 2026 because North American research-model volumes are lower, and academic and government customers face flat NIH budgets and slower grant processing. DSA trends are better, but the recovery is gradual and uneven.
NHP Supply and Cost Variability: Charles River’s safety assessment and large-model activities remain exposed to variability in NHP sourcing, study mix and study-start costs. In the second quarter of 2026, DSA adjusted operating margin fell 180 basis points year over year to 25.6%, primarily because of higher study-related direct costs, even as NHP shipment timing normalized in RMS. The Cambodia acquisition may not fully eliminate sensitivity to NHP availability, utilization and study timing. The acquired supplier also adds integration requirements. Because NHP-related work carries attractive economics, changes in model costs or study mix can still create quarter-to-quarter variability in margins and earnings.
CRL Stock Estimate TrendThe Zacks Consensus Estimate for CRL’s 2026 earnings has increased 2.3% to $11.30 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $3.90 billion, suggesting a 2.9% decrease from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Veracyte (VCYT - Free Report) , Globus Medical (GMED - Free Report) and Teleflex (TFX - Free Report) .
Veracyte has an earnings yield of 4.5% against the industry’s negative 1.3% yield. Shares of the company have risen 43.4% compared to the industry’s 3% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%.
VCYT sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical, carrying a Zacks Rank #2, has an earnings yield of 6% compared to the industry’s negative 1.3% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 35.8% against the industry’s 3% decline over the past year.
Teleflex, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.9% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX shares have rallied 11.9% against the industry’s 3% decline over the past year.
Great Lakes Advisors LLC purchased a new position in shares of Charles River Laboratories International, Inc. (NYSE:CRL – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 2,026 shares of the medical research company’s stock, valued at approximately $459,000.
A number of other hedge funds have also recently modified their holdings of CRL. Vanguard Group Inc. raised its holdings in Charles River Laboratories International by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 5,887,175 shares of the medical research company’s stock worth $1,174,374,000 after purchasing an additional 47,432 shares during the period. Invesco Ltd. lifted its position in Charles River Laboratories International by 115.8% during the fourth quarter. Invesco Ltd. now owns 2,696,150 shares of the medical research company’s stock valued at $537,828,000 after purchasing an additional 1,446,972 shares in the last quarter. State Street Corp grew its holdings in Charles River Laboratories International by 2.2% during the fourth quarter. State Street Corp now owns 1,871,688 shares of the medical research company’s stock valued at $373,364,000 after purchasing an additional 40,535 shares during the period. Dimensional Fund Advisors LP grew its holdings in Charles River Laboratories International by 14.6% during the first quarter. Dimensional Fund Advisors LP now owns 1,652,484 shares of the medical research company’s stock valued at $285,001,000 after purchasing an additional 210,260 shares during the period. Finally, Geode Capital Management LLC increased its holdings in Charles River Laboratories International by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 1,276,502 shares of the medical research company’s stock worth $254,186,000 after acquiring an additional 9,756 shares in the last quarter. Institutional investors own 98.91% of the company’s stock.
Here are the key news stories impacting Charles River Laboratories International this week:
Positive Sentiment: Charles River is collaborating with Medigen Vaccine Biologics to advance vaccine-development programs using next-generation sequencing. The partnership could expand CRL’s support for biologics and vaccine customers, although financial terms were not disclosed. Charles River Labs and Medigen Vaccine collaboration Positive Sentiment: Analysts highlight DSA’s return to organic growth, stronger bookings, and new testing capabilities as key drivers behind CRL’s approximately 88.6% one-year advance. These trends support the company’s strategy of broadening its role in drug-development services. Charles River rally drivers Neutral Sentiment: Options-market activity suggests traders are positioning for a potentially significant move in CRL shares, but the activity does not establish whether the anticipated move will be upward or downward. CRL options activity Negative Sentiment: Zacks cautions that the recent 33.3% monthly surge has raised the bar for execution. Margin pressure and a premium valuation may constrain upside unless bookings and guidance continue to improve. CRL valuation and rally outlook Negative Sentiment: Director Nancy Andrews sold 573 shares for approximately $163,443, reducing her direct holdings by 28.5%. The transaction is modest but adds to investor focus on insider selling after the stock’s rally. Nancy Andrews insider sale Negative Sentiment: EVP Shannon M. Parisotto sold 2,039 shares for approximately $599,711, reducing direct ownership by 29.8%; the sale was made under a pre-arranged Rule 10b5-1 trading plan, which lessens its signaling value. Shannon Parisotto insider sale Insider Activity In related news, CEO Birgit Girshick sold 6,500 shares of Charles River Laboratories International stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $279.90, for a total value of $1,819,350.00. Following the completion of the transaction, the chief executive officer owned 36,013 shares in the company, valued at approximately $10,080,038.70. This trade represents a 15.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Victoria L. Creamer sold 4,179 shares of the business’s stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $259.16, for a total value of $1,083,029.64. Following the sale, the executive vice president directly owned 30,051 shares in the company, valued at $7,788,017.16. The trade was a 12.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 132,429 shares of company stock worth $32,538,088. 1.30% of the stock is owned by insiders. Analyst Upgrades and Downgrades Several research analysts recently weighed in on the stock. Piper Sandler set a $300.00 target price on shares of Charles River Laboratories International in a report on Monday, August 10th. Mizuho set a $264.00 price target on shares of Charles River Laboratories International in a report on Monday, August 10th. Citigroup reiterated a “buy” rating on shares of Charles River Laboratories International in a research note on Wednesday, July 8th. Sanford C. Bernstein set a $250.00 price target on shares of Charles River Laboratories International in a research note on Wednesday, July 1st. Finally, Morgan Stanley increased their price objective on shares of Charles River Laboratories International from $260.00 to $300.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Twelve equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Charles River Laboratories International has an average rating of “Moderate Buy” and a consensus price target of $255.65.
View Our Latest Analysis on Charles River Laboratories International
Charles River Laboratories International Trading Up 0.0% Shares of CRL opened at $295.23 on Monday. The company’s fifty day moving average is $234.99 and its 200 day moving average is $193.73. Charles River Laboratories International, Inc. has a fifty-two week low of $144.26 and a fifty-two week high of $299.32. The stock has a market capitalization of $14.09 billion, a PE ratio of -60.87, a P/E/G ratio of 3.06 and a beta of 1.38. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.04 and a current ratio of 1.35.
Charles River Laboratories International (NYSE:CRL – Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The medical research company reported $3.02 EPS for the quarter, beating the consensus estimate of $2.77 by $0.25. Charles River Laboratories International had a negative net margin of 5.96% and a positive return on equity of 15.75%. The business had revenue of $1 billion during the quarter, compared to analyst estimates of $980.53 million. During the same quarter last year, the business earned $3.12 earnings per share. Charles River Laboratories International’s quarterly revenue was down 2.7% compared to the same quarter last year. Charles River Laboratories International has set its FY 2026 guidance at 11.150-11.450 EPS. Sell-side analysts expect that Charles River Laboratories International, Inc. will post 11.35 earnings per share for the current fiscal year.
Charles River Laboratories International Profile (Free Report)
Charles River Laboratories International, Inc is a leading provider of research models and preclinical and clinical support services for the pharmaceutical, biotechnology and medical device industries. The company’s core offerings include discovery, safety assessment, toxicology, and pathology services, as well as supply of laboratory animals and related diagnostics. Services extend across in vivo and in vitro testing, biologics testing, and support for advanced therapies, helping clients accelerate drug development from early discovery through regulatory submission.
Founded in 1947 in Wilmington, Massachusetts, Charles River has grown through strategic investments and acquisitions to establish a broad portfolio of capabilities.
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Charles River za rok posílil o 88,6 % díky návratu organických tržeb DSA k růstu a 0,2% mezikvartálnímu růstu objemu zakázek na 701 mil. USD. Nevyřízené zakázky vzrostly na 1,97 mld. USD.
Key Takeaways Charles River's shares rose 88.6% in a year, outperforming the industry's 11.5% rise.CRL's DSA organic revenues returned to growth as Q2 bookings rose 12.6% sequentially to $701 million. Charles River is expanding new testing approaches through PathoQuest, Arovella and Lilly's TuneLab. Charles River Laboratories International (CRL - Free Report) has witnessed strong momentum over the past year. Shares of the company have risen 88.6%, outperforming the industry’s 11.5% growth. The S&P 500 composite has increased 23.4% during the same time frame.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.
Charles River is a full-service, early-stage contract research organization, headquartered in Wilmington, MA. The company provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions globally accelerate their research and drug development efforts. It has a diverse portfolio of discovery and safety assessment services, both Good Laboratory Practice (“GLP”) and non-GLP. Charles River currently has three reporting segments - Discovery and Safety Assessment (“DSA”), Research Models and Services (“RMS”) and Manufacturing Solutions.
Factors Favoring CRL’s Share Price GrowthCharles River’s share price is trending upward, prompted by its strong DSA segment’s quarterly performance. In the second quarter of 2026, DSA organic revenues increased 0.2%, its first organic growth since the third quarter of 2023. Net bookings rose 12.6% sequentially to $701 million, backlog increased to $1.97 billion and net book-to-bill reached 1.19x, marking the third consecutive quarter above 1x and the highest level in nearly four years. This improvement was broad-based across global biopharma and small and midsized biotech clients.
Additionally, the company’s gradual, long-term shift toward broader adoption of new approach methodologies looks encouraging. PathoQuest adds next-generation sequencing capabilities for in vitro testing and a new Arovella Therapeutics collaboration extends those capabilities into cell and gene therapy programs. Charles River also joined Eli Lilly’s TuneLab platform to contribute non-clinical testing expertise to AI and machine-learning drug discovery. These initiatives complement virtual control groups and the AMAP program, reinforcing a strategy that combines in vivo, in vitro and data-driven approaches.
Image Source: Zacks Investment Research
From a solvency viewpoint, Charles River exited the second quarter of 2026 with cash and cash equivalents of $192 million, with no short-term debt payable. This is good news in terms of the company’s solvency position, particularly during the time of worldwide macroeconomic complications. The debt-to-capital ratio was 47.9% in the first quarter. The company repurchased $300 million of stock in the first half, including $100 million in the second quarter, leaving $700 million under its authorization while continuing to fund organic investment, acquisitions and debt repayment.
Factors That May Offset CRL’s GainsCharles River’s safety assessment and large-model activities remain exposed to variability in NHP sourcing, study mix and study-start costs. In the second quarter of 2026, DSA operating margin fell 180 basis points year over year to 25.6%, primarily because of higher study-related direct costs, even as NHP shipment timing normalized in RMS.
Additionally, the company competes on scientific expertise, quality, responsiveness, innovation, capacity and price across its business segments. Clients can still compare providers on price, capacity and technical capability, particularly in discretionary discovery work. If demand recovery remains gradual, the cost of maintaining technology, scientific talent and client support could limit operating leverage even as Charles River refines its portfolio.
Taking a Look at CRL’s EstimatesThe Zacks Consensus Estimate for 2026 earnings has moved north 2.1% to $11.28 in the past 30 days.
The company has an estimated long-term EPS growth rate of 8.5% compared with the industry’s 13.6% growth.
Other Stocks to ConsiderSome other top-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and Teleflex (TFX - Free Report) .
Globus Medical has an earnings yield of 5.8% against the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED’s shares have rallied 42.3% against the industry’s 6.3% fall over the past year.
GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Veracyte, sporting a Zacks Rank #1, has an earnings yield of 4.6% against the industry’s negative 1.7% yield. Shares of the company have risen 38% against the industry’s 6.3% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%.
Teleflex, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.8% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX’s shares have rallied 5% against the industry’s 6.2% decline over the past year.
Charles River Laboratories (CRL - Free Report) came out with quarterly earnings of $3.02 per share, beating the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $3.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.03%. A quarter ago, it was expected that this medical research equipment and services provider would post earnings of $1.96 per share when it actually produced earnings of $2.06, delivering a surprise of +5.1%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Charles River, which belongs to the Zacks Medical Services industry, posted revenues of $1 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.43%. This compares to year-ago revenues of $1.03 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Charles River shares have added about 17.4% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Charles River?While Charles River has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Charles River was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.05 on $943.09 million in revenues for the coming quarter and $11.05 on $3.85 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Nutex Health Inc. (NUTX - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $5.26 per share in its upcoming report, which represents a year-over-year change of +278.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Nutex Health Inc.'s revenues are expected to be $215.2 million, down 11.8% from the year-ago quarter.
Charles River Laboratories zveřejní 5. srpna výsledky za 2. čtvrtletí; tržby mají meziročně klesnout o 5,9 % a EPS o 12,8 %. Firma zároveň má pozitivní Earnings ESP a v posledních čtyřech čtvrtletích vždy překonala odhady.
Key Takeaways Charles River will report Q2 results on Aug. 5, with revenues and EPS expected to decline from last year.CRL expects pressure in RMS, DSA and Manufacturing Solutions amid softer demand and divestitures.CRL has a positive Earnings ESP. It beat estimates in each of the last four reported quarters. Charles River Laboratories International, Inc. (CRL - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5, before market open.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of $2.06 surpassed the Zacks Consensus Estimate by 5.1%. Charles River beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 9.31%.
Q2 Estimates for CRLThe Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $970.8 million, suggesting a 5.9% decline from the year-ago reported figure.
The Zacks Consensus Estimate for EPS projects a decrease of 12.8% year over year to $2.72. The estimate has dropped 1.1% in the past 30 days.
Let’s briefly review the company’s performance leading up to the announcement.
Trends Likely to Shape CRL’s Q2 ResultsResearch Models and Services (“RMS”)In the second quarter of 2026, the segment likely faced pressure from lower sales of small models and research model services. The first-quarter headwind from the timing of NHP shipments, affecting large model revenues, is expected to have eased, consistent with management’s expectations. Meanwhile, lower volumes in North America may have continued to weigh on small model revenues, as in-house research activity among large pharma and midsized biotech clients is yet to fully recover.
In addition, subdued demand from early-stage biotech clients likely kept occupancy levels at Charles River Accelerator and Development Lab (CRADL) constrained, weighing on RMS revenue growth.
On the positive side, demand for small models in China from mid-tier biotech and CRO clients likely remained solid. During the quarter, Charles River launched an enhanced In Vitro Fertility (IVF) service bundle to accelerate rat-model programs across therapeutic areas, including oncology, neurology, cardiology, and metabolic. The offering provides researchers with a new avenue to advance drug development research and help bring treatments to patients faster.
Our model estimates that Charles River’s RMS business revenues will decrease 5.5% in the second quarter of 2026.
Discovery and Safety Assessment (“DSA”)For the past several quarters, Charles River has been navigating a challenging demand environment within this segment. Discovery Services revenues are likely to have declined in the second quarter, partly as a result of site consolidation activities.
Earlier this year, the company signed a definitive agreement to divest certain European assets within this business to IQVIA Holdings Inc. for roughly $145 million in cash, subject to customary closing adjustments. The transaction was expected to close during the second quarter of 2026.
Meanwhile, Safety Assessment services likely continued to generate stable revenues. The acquisition of K.F. Cambodia’s assets earlier this year, now Charles River Cambodia, is expected to have strengthened and secured the company’s NHP supply chain for its Safety Assessment operations.
Management also indicated that the overall DSA demand environment was tracking in line with its expectations, as reflected in a net book-to-bill of 1.04x and a slight sequential increase in backlog at the end of the first quarter. Net bookings remained above the $600 million threshold, supported by continued strength from the small and mid-sized biotech client base.
Demand trends for global biopharmaceutical clients remained moderately below year-over-year levels, while healthy proposal activity in the first quarter signaled continued improvement in bookings momentum. All these trends are expected to have influenced the second-quarter performance as well.
Per our model estimate, Charles River’s DSA business revenues are expected to decline 5.5% year over year.
Manufacturing SolutionsWithin this, the Microbial Solutions business likely delivered another solid performance, aided by the Endosafe and Celsis manufacturing quality control testing platforms. Underlying demand for both Microbial Solutions and Biologics Testing may have remained healthy, with clients continuing to advance their late-stage development and commercial programs.
Further, the segment’s profitability is also expected to have benefited from higher revenues and benefits from ongoing cost-saving efforts.
A key development occurred in May 2026, when the company completed the sale of its contract development and manufacturing products and services (“CDMO”) and Cell Solutions businesses to GI Partners (GI) for future contingent performance-based payments up to $50.0 million, subject to certain customary closing adjustments. The completed divestiture is expected to have reduced Manufacturing Solutions revenues in the second quarter.
Our model estimates segment revenues to decrease 8.2% year over year.
Earnings Whispers for CRL StockPer our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is the case here:
Earnings ESP: Charles River has an Earnings ESP of +1.43%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Charles River currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 stocks here.
Other Key MedTech PicksHere are some medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
CVS Health (CVS - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 5.
CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.79%. The Zacks Consensus Estimate for the company’s second-quarter EPS indicates an increase of 3.3% from the year-ago quarter’s figure.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2026 results on Aug. 11.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 16.4% from the year-ago quarter’s figure.
Cencora, Inc. (COR - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is slated to release third-quarter fiscal 2026 results on Aug. 5.
COR’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 1.59%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.3% from the year-ago quarter’s figure.
Společnost Charles River Laboratories má podle odhadů ve 2. čtvrtletí překonat konsenzus EPS, protože Earnings ESP činí +1,43 % a Zacks Rank je #2. Zisk na akcii se očekává na úrovni 2,72 USD.
The market expects Charles River Laboratories (CRL - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis medical research equipment and services provider is expected to post quarterly earnings of $2.72 per share in its upcoming report, which represents a year-over-year change of -12.8%.
Revenues are expected to be $970.77 million, down 6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.72% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Charles River?For Charles River, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.43%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Charles River will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Charles River would post earnings of $1.96 per share when it actually produced earnings of $2.06, delivering a surprise of +5.10%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Charles River appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsArdent Health, Inc. (ARDT - Free Report) , another stock in the Zacks Medical Services industry, is expected to report earnings per share of $0.17 for the quarter ended June 2026. This estimate points to a year-over-year change of -67.3%. Revenues for the quarter are expected to be $1.59 billion, down 3.3% from the year-ago quarter.
The consensus EPS estimate for Ardent Health, Inc. has been revised 2.1% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +5.00%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Ardent Health, Inc. will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Charles River dokončil prodej CDMO a Cell Solutions a v 1. čtvrtletí provedl zpětný odkup akcií za 200 mil. USD. Zároveň dál čelí slabé poptávce po biopharmaceutických službách a měnovým protivětrům.
Key Takeaways Charles River is supported by RMS strength, broader CRADL adoption and focused portfolio actions.CRL completed CDMO and Cell Solutions divestitures and repurchased $200M of stock in Q1 2026.CRL faces soft biopharma demand and foreign exchange headwinds that may weigh on 2026 results. Charles River Laboratories International, Inc. (CRL - Free Report) is well-poised to grow in the coming quarters owing to the strength of its Research Models and Services (“RMS”) business and broader CRADL adoption. Strategic deals continue to broaden its capabilities while streamlining its portfolio. The company maintains a solid financial position, which is also highly encouraging. Yet, persistent soft biopharma demand trends and adverse currency swings may hurt Charles River’s results of operations.
Over the past year, this Zacks Rank #3 (Hold) stock has rallied 44.6% compared with the industry’s 9.6% rise and the S&P 500 composite’s 23% growth.
The renowned, non-clinical global drug development company has a market capitalization of $10.87 billion. Charles River has an earnings yield of 4.9%, which compares favorably with the industry’s 4.1% yield. It surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 9.31%.
Let’s delve deeper.
Upsides for CRL StockRMS Prospects Seem Bright: Charles River continues to maintain its position as a global leader in the production and sale of widely used research models. Small research models remain a cost-effective tool for biomedical research, supporting the company’s ability to implement pricing actions across geographies over time.
In the first quarter of 2026, management highlighted continued demand for small models in China from mid-tier biotech and CRO clients and emphasized that RMS results can vary from quarter to quarter based on the timing of large-model shipments. Charles River’s CRADL model also continues to appeal to clients seeking flexible vivarium space without having to build internal infrastructure, with its value proposition becoming even more attractive as clients prioritize capital efficiency.
Image Source: Zacks Investment Research
Strategic Deals Drive Growth: Charles River is reshaping its portfolio to focus on areas where it has differentiated scientific capabilities. The company completed the previously announced divestiture of its contract development and manufacturing organization (CDMO) and Cell Solutions businesses on May 6, 2026. CRL continues to use collaborations and selective acquisitions to broaden its capabilities across the discovery-to-development continuum while maintaining a more focused go-forward portfolio.
Its strategic collaborations within its CDMO, including partnerships with the Parker Institute for Cancer Immunotherapy, Children's Hospital Los Angeles and the Gazi University Faculty of Medicine, are aimed at advancing novel oncology research and development. In 2025, Charles River participated in several collaborations, including those with Toxys, X-Chem and the Francis Crick Institute, among others.
A Stable Solvency Structure: Charles River exited the first quarter of 2026 with cash and cash equivalents of $191.8 million, and no short-term debt payable on its balance sheet. The company continues to balance investment, shareholder returns and funding needs. Charles River also repurchased $200 million of stock under the $1.0 billion authorization, leaving $800 million remaining at quarter-end.
Factors Affecting Charles RiverBiopharma Demand Remains Soft: Charles River continues to face a cautious spending environment, particularly among global biopharmaceutical and biotechnology clients within the DSA segment, as customers reassess budgets, reprioritize drug pipelines and manage cost structures. While management characterized the biopharma demand environment as stabilizing, spending levels are yet to return to prior norms.
First-quarter 2026 organic revenues declined 1.5%, reflecting pressure in RMS and discovery services. Management also noted that revenues from small and mid-sized biotech clients dropped during the quarter due to the lagged impact of softer DSA bookings in mid-2025, highlighting that improved funding conditions do not translate into revenues immediately.
Foreign Exchange Can Obscure Underlying Trends: Foreign currency translation increased Charles River’s reported first-quarter 2026 revenues by 2.8%, partially masking the underlying organic decline. Management also lowered its 2026 reported revenue outlook by approximately 50 basis points due to updated foreign exchange assumptions. Given the company’s sizable international footprint, foreign exchange volatility can create discrepancies between reported and organic performance and make period-to-period comparisons more challenging.
CRL Stock Estimate TrendThe Zacks Consensus Estimate for CRL’s 2026 earnings has increased 1 cent to $11.05 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $3.83 billion, suggesting a 4.5% decrease from the year-ago reported number.
Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .
Globus Medical has an earnings yield of 5.9% compared to the industry’s negative 3.5% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 27.8% against the industry’s 10.9% decline over the past year.
GMED carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dipped 15.3% against the industry’s 9.1% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 13.6% against the industry’s negative 3.5% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 33.3% against the industry’s 10.9% decline over the past year.
