Charles River Raises 2026 Outlook as Q3 Organic Revenue Grows 4.7% and Non-GAAP EPS Rises 27.2%

Published November 4, 2026 at 9:22 AM EST

Charles River Laboratories raised its 2026 revenue and earnings guidance after third-quarter organic revenue grew 4.7%, its second straight quarter of organic growth, according to its 8-K released Wednesday.

Reported revenue fell 2.2% to $982.7 million from $1.0049 billion, mainly because of businesses divested in May 2026. GAAP EPS was $6.86, and non-GAAP EPS rose 27.2% to $3.09.

Margins widen, helped by a tax reversal

Non-GAAP operating margin increased 330 basis points to 23.0%. GAAP operating margin jumped to 20.6% from 13.3%, driven primarily by a $44.6 million benefit in the Discovery and Safety Assessment segment from reversing acquired non-income tax reserves after newly enacted tax legislation.

Organic growth came from the Manufacturing Solutions and Discovery and Safety Assessment segments. The company said the outperformance versus its prior outlook was led by better-than-expected results in the DSA segment, its largest business serving drug developers.

Guidance raised

Charles River now expects 2026 organic revenue growth of at least 1.5%, up from a prior range of flat to 1.0%. Reported revenue is now forecast to decline 1.5% to 2.0%, compared with a prior range of down 2.5% to 3.5%.

Non-GAAP EPS guidance rises to $11.35 to $11.55 from $11.15 to $11.45. GAAP EPS guidance jumps to $8.15 to $8.35 from $3.05 to $3.35, mostly reflecting the reversal of acquired tax reserves, which adds $5.03 per share.

Strategy moves

At its 2026 Investor Day, the company laid out a "Pathway to Purpose" strategic vision. It also announced a collaboration with the FDA to validate preclinical tools that rank the abuse potential of new drugs and said its Virtual Control Group database will be used in an upcoming safety study for Ipsen.

By the numbers

Q3 revenue: $982.7 million, down 2.2%
Organic revenue growth: 4.7%
Non-GAAP EPS: $3.09, up 27.2%
Non-GAAP operating margin: 23.0%
2026 non-GAAP EPS guidance: $11.35 to $11.55

Sources

Charles River Laboratories Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0001100682-26-000156)

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