Charles River Laboratories Announces Third-Quarter 2026 Results
– Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the third quarter ended September 26, 2026.
• Reports third-quarter revenue of $982.7 million, GAAP earnings per share of $6.86, and non-GAAP earnings per share of $3.09.
• Organic revenue growth of 4.7%, outperforming the Company's prior outlook and representing a return to organic revenue growth for the second consecutive quarter.
• Operating margin increased year-over-year, with non-GAAP operating margin increasing 330 basis points to 23.0% and GAAP operating margin increasing 730 basis points to 20.6%.
• Organic revenue guidance increasing by 100 basis points and non-GAAP earnings per share guidance increasing by $0.15 at midpoint.
• Guidance increases primarily driven by third-quarter outperformance, led by a better-than-expected performance in the DSA segment and a lower tax rate.
• Charles River unveiled its Pathway to Purpose strategic vision and Create the Future TM initiative at its 2026 Investor Day, outlining initiatives designed to enhance operational excellence, strengthen scientific leadership, and drive long-term value creation.
• The Company advanced modernization efforts through the implementation of its Endosafe ® Cartridge Technology Automated Manufacturing Suite, which utilizes a fully automated production suite to increase production capacity and strengthen manufacturing controls and digital traceability. In addition, the Company partnered with Autolomous to launch Apollo Orchestrate TM , a new capability within Charles River's Apollo ® platform to digitize and transform laboratory workflows, increase efficiency, and provide greater transparency and connectivity with clients.
• Charles River has also taken steps to continue to strengthen its scientific capabilities. It recently announced an industry collaboration with the U.S. Food and Drug Administration (FDA) to validate preclinical screening tools to quantify and rank the abuse potential of new drugs.
• To further advance its Alternative Methods Advancement Project TM (AMAP TM ) initiative, the Company introduced a new, rapid cell banking program designed to significantly accelerate product release timelines in its Biologics Testing Solutions business by incorporating in vitro next-generation sequencing capabilities into the cell bank production process. In addition, its Virtual Control Group (VCG) database and methodology will be 1
used in an upcoming Good Laboratory Practice (GLP)-compliant safety assessment study for Ipsen.
Revenue was $982.7 million, a decrease of 2.2% from $1,004.9 million in the third quarter of 2025, primarily driven by the impact of the May 2026 divestitures. On an organic basis, revenue increased 4.7%, driven by revenue growth in the Manufacturing Solutions (Manufacturing) and Discovery and Safety Assessment (DSA) segments. Organic revenue growth excludes the effect of acquisitions, divestitures, and foreign currency translation.
In the third quarter of 2026, the GAAP operating margin was 20.6%, compared to 13.3% in the third quarter of 2025, driven primarily by a benefit of $44.6 million in the DSA segment from the reversal of acquired non-income tax reserves following newly enacted tax legislation and completion of certain tax requirements in a foreign jurisdiction. The GAAP net income available to common shareholders for the third quarter of 2026 was $333.1 million, or $6.86 per diluted share, compared to GAAP net income of $54.4 million, or $1.10 per diluted share for the same period in 2025. The GAAP net income and earnings per share increases included a benefit totaling $245.6 million, or $5.06 per share, associated with the reversal of acquired tax reserves following newly enacted tax legislation and completion of certain tax requirements in a foreign jurisdiction.
On a non-GAAP basis, the third-quarter operating margin increased to 23.0% from 19.7% in the third quarter of 2025, primarily as a result of the benefit of the CDMO divestiture and operating leverage from higher sales volume for safety assessment services. Non-GAAP net income was $150.1 million for the third quarter of 2026, an increase of 24.8% from $120.3 million for the same period in 2025. Third-quarter diluted earnings per share on a non-GAAP basis were $3.09, an increase of 27.2% from $2.43 per share in the third quarter of 2025. The non- GAAP net income and earnings per share increases were driven primarily by the higher operating margin and a lower tax rate.
Birgit Girshick, Chief Executive Officer, said, “In the third quarter, we were encouraged by the continued strength of the biopharmaceutical demand environment and that was reflected in our financial results. Revenue and earnings per share outperformed our prior expectations, DSA net bookings and proposals continued to show robust, year-over-year increases, and we continued to make meaningful progress towards our strategy and long-term financial targets. We see significant opportunities to continue to strengthen Charles River’s position as a leading scientific partner for regulated testing across the drug development continuum. Through our Pathway to Purpose strategy, we are building a more agile, client-centric organization that will deepen client relationships, expand engagement across our portfolio, and increase our share of R&D spend as demand trends continue to improve."
Revenue for the DSA segment was $596.3 million in the third quarter of 2026, a decrease of 0.7% from $600.7 million in the third quarter of 2025, primarily driven by the divestiture of 2
certain European Discovery Services sites. Organic revenue increased by 5.9%, driven primarily by higher study volume for regulated safety assessment services.
In the third quarter of 2026, the DSA segment’s GAAP operating margin increased to 28.9% from 20.5% in the third quarter of 2025. The increase was primarily driven by the reversal of acquired non-income tax reserves. On a non-GAAP basis, the operating margin increased to 26.8% from 25.4% in the third quarter of 2025. The non-GAAP operating margin increase was primarily driven by operating leverage from higher study volume for regulated safety assessment services, as well as lower sourcing costs for large research models.
Revenue for the Manufacturing segment was $178.9 million in the third quarter of 2026, a decrease of 6.2% from $190.7 million in the third quarter of 2025, primarily driven by the CDMO divestiture. Organic revenue increased 7.4%, driven by strong demand in both the Biologics Testing Solutions and Microbial Solutions businesses.
The Manufacturing segment’s GAAP operating margin was 35.7%, compared to 20.9% in the third quarter of 2025. On a non-GAAP basis, the operating margin increased to 38.6% from 26.7% in the third quarter of 2025. The GAAP and non- GAAP increases were driven primarily by the benefit of the CDMO divestiture.
Revenue for the RMS segment was $207.5 million in the third quarter of 2026, a decrease of 2.8% from $213.5 million in the third quarter of 2025, primarily driven by the Cell Solutions divestiture. Organic revenue decreased by 0.6%, due primarily to lower revenue for small research models in North America and for large research models. The decline was partially offset by higher revenue for small research models in China and for research model services, particularly the Insourcing Solutions business.
In the third quarter of 2026, the RMS segment’s GAAP operating margin increased to 19.9% from 16.2% in the third quarter of 2025, primarily due to lower costs related to the Cell Solutions divestiture and restructuring initiatives. On a non-GAAP basis, the operating margin decreased to 24.4% from 25.0%. The non-GAAP operating margin decrease was primarily driven by the impact of an unfavorable revenue mix, both geographically and related to large research models.
The Company is increasing its 2026 revenue and earnings per share guidance, which was last updated on August 5, 2026. This increase primarily reflects the third-quarter outperformance, which was principally driven by the better-than- expected performance in the DSA segment and a lower tax rate. On a GAAP basis, the Company is also increasing its earnings per share guidance, due primarily to the third-quarter benefit associated with the reversal of acquired tax reserves. 3
2026 GUIDANCE CURRENT PRIOR Revenue growth/(decrease), reported (2.0)% - (1.5)% (3.5)% - (2.5)% Less: Contribution from acquisitions 0.0% - (0.5)% 0.0% - (0.5)% Add: Impact from divestitures ~4.5% ~4.5% Less: Favorable impact of foreign (0.5)% - (1.0)% (0.5)% - (1.0)% exchange Revenue growth/(decrease), organic (1) At least +1.5% 0.0% - 1.0% GAAP EPS estimate $8.15 – $8.35 $3.05 – $3.35 Acquisition-related amortization (2) ~$2.10 ~$2.30 Acquisition- and divestiture-related ~$4.70 ~$4.75 costs (3) Reversal of acquired tax reserves (4) -$5.03 -- Costs associated with restructuring and ~$1.50 ~$1.20 efficiency initiatives (5) Other, net (6) -$0.03 -$0.17 Non-GAAP EPS estimate $11.35 – $11.55 $11.15 – $11.45
(1) Organic revenue growth is defined as reported revenue growth adjusted for completed acquisitions and divestitures (including the CDMO and Cell Solutions businesses, as well as certain European Discovery Services sites), as well as foreign currency translation.
(2) These adjustments primarily include amortization related to intangible assets, as well as the purchase accounting step-up on inventory and certain long-term biological assets.
(3) These adjustments include costs related to the evaluation and integration of acquisitions and divestitures, as well as a net loss on divestitures and other transaction-related tax adjustments.
(4) This adjustment is related to the third-quarter benefit associated with the reversal of acquired tax reserves following newly enacted tax legislation and completion of certain tax requirements in a foreign jurisdiction.
(5) These adjustments primarily include site consolidation (including site transition costs), severance, impairment, third-party consulting and professional services, and other costs related to the Company’s restructuring actions and efficiency initiatives. These adjustments also include gains and/or losses on the sale of certain assets and real estate.
(6) These adjustments primarily include: (i) certain venture capital and other strategic investment losses/(gains), net. This item only includes recognized gains or losses on certain investments. The Company does not forecast the future performance of these investments; and (ii) reductions to a previous $27 million inventory charge associated with a non-human primate (NHP) supply matter. As a result of the resolution of the U.S. government investigations during fiscal year 2025, certain NHPs were subsequently utilized.
Charles River has scheduled a live webcast on Wednesday, November 4, 2026, at 9:00 a.m. ET to discuss matters relating to this press release. To participate, please go to ir.criver.com and select the webcast link. You can also find the associated slide presentation and reconciliations of GAAP financial measures to non-GAAP financial measures on the website. 4
The Company reports non-GAAP results in this press release, which exclude often- one-time charges and other items that are outside of normal operations. A reconciliation of GAAP to non-GAAP results is provided in the schedules at the end of this press release.
This press release contains non-GAAP financial measures, such as non-GAAP earnings per share, non-GAAP operating income, non-GAAP operating margin, and non-GAAP net income. Non-GAAP financial measures exclude, but are not limited to, the amortization of intangible assets and the purchase accounting step-up adjustment on inventory and certain long term biological assets, and other charges and adjustments related to our acquisitions and divestitures, including expenses associated with evaluating and integrating acquisitions and divestitures, including advisory fees, certain transition costs, and certain other transaction-related costs, as well as fair value adjustments associated with contingent consideration; charges, gains, and losses attributable to businesses or properties we plan to close, consolidate, or divest, including the divestitures of our CDMO and Cell Solutions businesses, the sale of certain of our European Discovery Services sites, and the sale of certain assets including real estate; severance and other costs associated with our restructuring initiatives; investment gains or losses associated with our venture capital and certain other strategic equity investments; certain legal costs and adjustments related to an NHP inventory charge in our DSA segment related to now concluded U.S. government investigations into the NHP supply chain; legal and advisory costs related to entering into a Cooperation Agreement with a shareholder; tax effect of all of the aforementioned matters; and adjustments related to the derecognition of certain deferred tax assets due to the CDMO Gene Therapy intangible asset impairment charge, the recognition of deferred tax assets expected to be utilized as a result of changes to the Company's international financing structure, the revaluation of deferred tax liabilities as a result of foreign tax legislation, and the tax benefit recognized as a result of the changes in tax law enacted in a foreign jurisdiction. This press release also refers to our revenue on both a GAAP and non-GAAP basis: on a non-GAAP basis, we define “organic revenue growth” as reported revenue growth adjusted for foreign currency translation, acquisitions, and divestitures. We exclude these items from the non-GAAP financial measures because they are outside our normal operations. There are limitations in using non-GAAP financial measures, as they are not presented in accordance with generally accepted accounting principles, and may be different than non-GAAP financial measures used by other companies. In particular, we believe that the inclusion of supplementary non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of our core operating results and future prospects without the effect of these often-one-time charges, and is consistent with how management measures and forecasts the Company's performance, especially when comparing such results to prior periods or forecasts. We believe that the financial impact of our acquisitions and divestitures (and in certain cases, the evaluation of such acquisitions and divestitures, whether or not ultimately consummated) is often large relative to our overall financial performance, which can adversely affect the comparability of our results on a period-to-period basis. In addition, certain activities and their underlying associated costs, such as business acquisitions, generally occur periodically but on an unpredictable basis. We calculate non-GAAP integration costs to include third-party integration costs incurred post-acquisition. 5
Presenting revenue on an organic basis allows investors to measure our revenue growth exclusive of acquisitions, divestitures, and foreign currency exchange fluctuations more clearly. Non-GAAP results also allow investors to compare the Company’s operations against the financial results of other companies in the industry who similarly provide non-GAAP results. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations presented in accordance with GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules and regulations. Reconciliations of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures are set forth in this press release, and can also be found on the Company’s website at ir.criver.com.
This press release includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “would,” “may,” “estimate,” “plan,” “outlook,” and “project,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements also include statements regarding: the projected and/or anticipated future financial performance of Charles River and our specific businesses, including as delineated in our forward-looking guidance, and particularly our expectations with respect to revenue, the impact of foreign exchange, interest rates, and enhanced efficiency initiatives, including our Create the Future initiative; our expectations with respect to our ability to gain market share; our ability to create long-term value for our shareholders and successfully execute on our strategic initiatives, including our Pathway to Purpose strategic vision, and the impact and results of such initiatives; the Company’s plans or prospects, expectations and long-term goals associated with our business; earnings per share; operating margin; client demand, particularly the future demand for drug discovery and development products and services, including our expectations for future revenue trends; our expectations with respect to booking trends and the impacts thereof; our expectations with respect to pricing of our products and services; our expectations with respect to future tax rates and the impact of such tax rates on our business; our expectations with respect to the impact of acquisitions and divestitures, including the acquisition of the assets of K.F. (Cambodia) Ltd. and of PathoQuest SAS, the divestitures of the Company's CDMO and Cell Solutions businesses, the sale of certain of our European Discovery Services sites, and the sale of certain assets including real estate; our service offerings, client perception, strategic relationships, revenue, revenue growth rates, revenue growth drivers, and earnings; the development and performance of our services and products, including our investments in our portfolio; market and industry conditions including the outsourcing of services and identification of spending trends by our clients and funding available to them; ability to gain market share and capitalize on business and growth opportunities; the impact of our restructuring initiatives, including annualized savings; and the impact of our stock repurchase authorization. Forward-looking statements are based on Charles River’s current expectations and beliefs, speak only as of the date of this press release, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. Those risks and uncertainties include, but are not limited to: the impact of NHP supply constraints; changes and uncertainties in the global economy and financial markets, including 6
disruptions in the global economy caused by geopolitical conflicts; the ability to successfully integrate businesses we acquire, and risks and uncertainties associated with businesses that we acquire; the timing and magnitude of our share repurchases; negative trends in research and development spending, negative trends in the level of outsourced services, or other cost reduction actions by our clients; the ability to convert backlog to revenue; demand and booking trends; special interest groups; contaminations; industry trends; new displacement technologies; USDA and FDA regulations; changes in law; continued availability of products and supplies; the impact of unauthorized access into our information systems; loss of key personnel; interest rate and foreign currency exchange rate fluctuations; changes in tax regulation and laws; changes in generally accepted accounting principles; and any changes in business, political, or economic conditions due to the threat of future terrorist activity in the U.S. and other parts of the world, and related U.S. military action overseas. A further description of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in Charles River's Annual Report on Form 10-K as filed on February 18, 2026, as well as other filings we make with the Securities and Exchange Commission. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by Charles River. Charles River assumes no obligation and expressly disclaims any duty to update information contained in this press release except as required by law.
Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com. # # # Investor Contact: Media Contact:
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SCHEDULE 2 CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share amounts) Assets September 26, December 27, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 200,381 $ 213,770 equivalents Trade receivables and contract assets, net of allowances for 735,305 708,856 credit losses of $10,511 and $10,463, respectively Inventories 319,638 299,103 Prepaid assets 97,265 96,108 Other current 182,439 129,212 assets Total current 1,535,028 1,447,049 assets Property, plant and equipment, 1,497,335 1,655,219 net Venture capital and strategic 194,521 206,972 equity investments Operating lease right-of-use 332,330 361,415 assets, net Goodwill 3,084,112 2,764,253 Intangible 238,662 339,995 assets, net Deferred tax 67,467 67,334 assets Other assets 502,052 293,185 Total assets $ 7,451,507 $ 7,135,422 Liabilities, Redeemable Noncontrolling Interests and Equity Current liabilities: Accounts $ 144,507 $ 148,800 payable Accrued 225,937 268,854 compensation Deferred 204,204 210,418 revenue Accrued 285,737 270,085 liabilities Other current 228,873 222,158 liabilities Total current 1,089,258 1,120,315 liabilities Long-term debt, net and finance 2,443,461 2,136,360 leases Operating lease right-of-use 405,351 434,048 liabilities Deferred tax 81,815 95,203 liabilities Other long-term 156,356 138,302 liabilities Total 4,176,241 3,924,228 liabilities Redeemable noncontrolling 43,173 41,263 interests Equity: Preferred stock, $0.01 par value; 20,000 shares — — authorized; no shares issued and outstanding Common stock, $0.01 par value; 120,000 shares authorized; 49,699 shares issued and 47,876 shares 497 492 outstanding as of September 26, 2026, and 49,217 shares issued and outstanding as of December 27, 2025 Additional 2,035,124 1,947,301 paid-in capital Retained 1,705,362 1,388,620 earnings Treasury stock, at cost, 1,823 and zero shares, as of September 26, -323,281 — 2026 and December 27, 2025, respectively Accumulated other -190,691 -171,783 comprehensive loss Total Charles River Laboratories 3,227,011 3,164,630 International, Inc. equity Nonredeemable noncontrolling 5,082 5,301 interest Total equity 3,232,093 3,169,931 Total liabilities, redeemable $ 7,451,507 $ 7,135,422 noncontrolling interests and equity
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SCHEDULE 3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Cash flows Nine Months relating to Ended operating September 26, September 27, activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 318,882 $ 134,127 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and 206,701 325,035 amortization Long-lived asset 27,171 36,185 impairments Stock-based 62,929 53,451 compensation Deferred -4,089 -15,122 income taxes Reversal of an unrecognized tax benefit reserve and -245,638 — related interest and penalties Write down of 4,033 10,697 inventories (Gains) losses and impairments on venture capital and -4,897 33,955 strategic equity investments, net (Gain) loss on -37,776 982 sale of assets Provision for 1,935 4,559 credit losses (Gain) loss on divestitures, 180,300 -3,376 net Other, net -8,538 2,324 Changes in assets and liabilities: Trade receivables and contract -110,271 8,106 assets, net Inventories 64,440 -45,280 Accounts 25,601 40,747 payable Accrued -26,898 81,870 compensation Deferred 6,227 -12,319 revenue Customer contract 12,681 -533 deposits Other assets and 2,094 -65,282 liabilities, net Net cash provided by 474,887 590,126 operating activities Cash flows relating to investing activities Acquisition of businesses and assets, -467,254 — net of cash acquired Capital -133,823 -130,202 expenditures Purchases of investments and contributions -14,718 -12,544 to venture capital investments Proceeds from sale of 18,876 5,637 investments Proceeds from surrender of life 58,127 — insurance policies Proceeds from sale of 176,563 17,441 businesses and assets, net Other, net -7,292 3,154 Net cash used in investing -369,521 -116,514 activities Cash flows relating to financing activities Proceeds from long-term debt and 1,420,223 1,070,861 revolving credit facility Payments on long-term debt, revolving -1,081,266 -1,141,500 credit facility, and finance lease obligations Proceeds from exercises of 29,733 3 stock options Purchase of -324,105 -360,577 treasury stock Payment of contingent consideration and -111,394 -21,822 deferred acquisition consideration Purchase of remaining equity interests — -19,140 of other redeemable noncontrolling interest Other, net -4,274 -12,687 Net cash used in financing -71,083 -484,862 activities Effect of exchange rate changes on cash, -1,199 14,900 cash equivalents, and restricted cash Net change in cash, cash equivalents, 33,084 3,650 and restricted cash Cash, cash equivalents, and restricted 215,997 205,570 cash, beginning of period Cash, cash equivalents, and restricted $ 249,081 $ 209,220 cash, end of period
CHAR… RIVER LABO… INTE… INC. SCHE… 5 RECO… OF GAAP EARN… TO NON-… EARN… (UNA… (in thou… exce… per Three Septe… Septe… Nine Sept… Septe… share Months 26, 27, Months 26, 27, data) Ended 2026 2025 Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net inco… avai… to Char… River $ 333,0… $ 54,422 $ 316,… $ 132,2… Labo… Inte… Inc. comm… shar… Add back: Non-… adju… to 22,123 62,632 148,… 302,1… oper… inco… Vent… capi… and stra… equi… 2,231 20,201 -4,6… 31,594 inve… loss… and impa… net (Gai… loss 461 — 180,… -3,376 on dive… Accr… of defe… 1,081 — 2,741 — acqu… cons… Tax effe… of non-… adju… Enac… tax — 3,236 — 3,236 law chan… Tax impa… — — -35,… — of dive… Inte… on acqu… — — 11,2… — unce… tax posi… Reve… of an unre… tax bene… rese… -201,… — -201… — and rela… inte… and pena… Tax effe… of the -7,778 -20,1… -20,… -72,3… rema… non-… adju… Net inco… avai… to Char… River Labo… $ 150,1… $ 120,3… $ 398,… $ 393,4… Inte… Inc. comm… shar… excl… non-… adju… Weig… aver… shar… 47,803 49,213 48,2… 49,680 outs… - Basic Effe… of dilu… secu… Stock opti… rest… stock units 781 213 641 186 and perf… share units Weig… aver… shar… 48,584 49,426 48,8… 49,866 outs… - Dilu… Earn… per share attr… to comm… shar… Basic $ 6.97 $ 1.11 $ 6.56 $ 2.66 Dilu… $ 6.86 $ 1.10 $ 6.48 $ 2.65 Basi… excl… $ 3.14 $ 2.45 $ 8.25 $ 7.92 non-… adju… Dilu… excl… $ 3.09 $ 2.43 $ 8.14 $ 7.89 non-… adju… Charl… River manag… belie… that suppl… non-G… finan… measu… provi… useful infor… to allow inves… to gain a meani… under… of our core opera… resul… and future prosp… witho… the effect of often… charg… and other items which are outsi… our normal opera… consi… with the manner in which manag… measu… (1) and forec… the Compa… perfo… The suppl… non-G… finan… measu… inclu… are not meant to be consi… super… to, or a subst… for resul… of opera… prepa… in accor… with U.S. GAAP. The Compa… inten… to conti… to assess the poten… value of repor… non-G… resul… consi… with appli… rules, regul… and guida… This amount exclu… non-G… (2) adjus… attri… to nonco… inter… holde… The amount inclu… in the nine month period ended Septe… 26, 2026 prima… refle… a $181.7 milli… loss on the CDMO and Cell Solut… (3) Dives… net with a $1.4 milli… gain on the Europ… Disco… Dives… The amount inclu… in 2025 relat… to a gain on the sale of a DSA site. Repre… non-c… inter… expen… recog… from the accre… of (4) defer… purch… consi… assoc… with the Cambo… NHP Suppl… acqui… The amount inclu… in the nine month period ended Septe… 26, 2026 refle… the tax benef… resul… from the (5) rever… of an unrec… tax benef… reser… follo… newly enact… tax legis… and compl… of certa… tax requi… in a forei… juris…
Full text with the tables
Exhibit 99.1
NEWS RELEASE
Charles River Laboratories Announces Third-Quarter 2026 Results
WILMINGTON, MA, November 4, 2026
– Charles River Laboratories International, Inc. (NYSE: CRL) today reported its
results for the third quarter ended September 26, 2026.
Key Highlights
• Reports third-quarter revenue of $982.7 million, GAAP earnings per share of
$6.86, and non-GAAP earnings per share of $3.09.
• Organic revenue growth of 4.7%, outperforming the Company's prior outlook and
representing a return to organic revenue growth for the second consecutive
quarter.
• Operating margin increased year-over-year, with non-GAAP operating margin
increasing 330 basis points to 23.0% and GAAP operating margin increasing 730
basis points to 20.6%.
• Non-GAAP earnings per share increased 27.2% year-over-year.
• Increases 2026 guidance for revenue and non-GAAP earnings per share.
• Organic revenue guidance increasing by 100 basis points and non-GAAP earnings
per share guidance increasing by $0.15 at midpoint.
• Guidance increases primarily driven by third-quarter outperformance, led by a
better-than-expected performance in the DSA segment and a lower tax rate.
• Charles River unveiled its Pathway to Purpose strategic vision and Create the
Future TM initiative at its 2026 Investor Day, outlining initiatives designed to
enhance operational excellence, strengthen scientific leadership, and drive
long-term value creation.
• The Company advanced modernization efforts through the implementation of its
Endosafe ® Cartridge Technology Automated Manufacturing Suite, which utilizes a
fully automated production suite to increase production capacity and strengthen
manufacturing controls and digital traceability. In addition, the Company
partnered with Autolomous to launch Apollo Orchestrate TM , a new capability
within Charles River's Apollo ® platform to digitize and transform laboratory
workflows, increase efficiency, and provide greater transparency and
connectivity with clients.
• Charles River has also taken steps to continue to strengthen its scientific
capabilities. It recently announced an industry collaboration with the U.S. Food
and Drug Administration (FDA) to validate preclinical screening tools to
quantify and rank the abuse potential of new drugs.
• To further advance its Alternative Methods Advancement Project TM (AMAP TM )
initiative, the Company introduced a new, rapid cell banking program designed to
significantly accelerate product release timelines in its Biologics Testing
Solutions business by incorporating in vitro next-generation sequencing
capabilities into the cell bank production process. In addition, its Virtual
Control Group (VCG) database and methodology will be
1
Exhibit 99.1
used in an upcoming Good Laboratory Practice (GLP)-compliant safety assessment
study for Ipsen.
Third-Quarter Results
Revenue was $982.7 million, a decrease of 2.2% from $1,004.9 million in the
third quarter of 2025, primarily driven by the impact of the May 2026
divestitures. On an organic basis, revenue increased 4.7%, driven by revenue
growth in the Manufacturing Solutions (Manufacturing) and Discovery and Safety
Assessment (DSA) segments. Organic revenue growth excludes the effect of
acquisitions, divestitures, and foreign currency translation.
In the third quarter of 2026, the GAAP operating margin was 20.6%, compared to
13.3% in the third quarter of 2025, driven primarily by a benefit of $44.6
million in the DSA segment from the reversal of acquired non-income tax reserves
following newly enacted tax legislation and completion of certain tax
requirements in a foreign jurisdiction. The GAAP net income available to common
shareholders for the third quarter of 2026 was $333.1 million, or $6.86 per
diluted share, compared to GAAP net income of $54.4 million, or $1.10 per
diluted share for the same period in 2025. The GAAP net income and earnings per
share increases included a benefit totaling $245.6 million, or $5.06 per share,
associated with the reversal of acquired tax reserves following newly enacted
tax legislation and completion of certain tax requirements in a foreign
jurisdiction.
On a non-GAAP basis, the third-quarter operating margin increased to 23.0% from
19.7% in the third quarter of 2025, primarily as a result of the benefit of the
CDMO divestiture and operating leverage from higher sales volume for safety
assessment services. Non-GAAP net income was $150.1 million for the third
quarter of 2026, an increase of 24.8% from $120.3 million for the same period in
2025. Third-quarter diluted earnings per share on a non-GAAP basis were $3.09,
an increase of 27.2% from $2.43 per share in the third quarter of 2025. The non-
GAAP net income and earnings per share increases were driven primarily by the
higher operating margin and a lower tax rate.
Birgit Girshick, Chief Executive Officer, said, “In the third quarter, we were
encouraged by the continued strength of the biopharmaceutical demand environment
and that was reflected in our financial results. Revenue and earnings per share
outperformed our prior expectations, DSA net bookings and proposals continued to
show robust, year-over-year increases, and we continued to make meaningful
progress towards our strategy and long-term financial targets. We see
significant opportunities to continue to strengthen Charles River’s position as
a leading scientific partner for regulated testing across the drug development
continuum. Through our Pathway to Purpose strategy, we are building a more
agile, client-centric organization that will deepen client relationships, expand
engagement across our portfolio, and increase our share of R&D spend as demand
trends continue to improve."
Third-Quarter Segment Results
Discovery and Safety Assessment (DSA)
Revenue for the DSA segment was $596.3 million in the third quarter of 2026, a
decrease of 0.7% from $600.7 million in the third quarter of 2025, primarily
driven by the divestiture of
2
Exhibit 99.1
certain European Discovery Services sites. Organic revenue increased by 5.9%,
driven primarily by higher study volume for regulated safety assessment
services.
In the third quarter of 2026, the DSA segment’s GAAP operating margin increased
to 28.9% from 20.5% in the third quarter of 2025. The increase was primarily
driven by the reversal of acquired non-income tax reserves. On a non-GAAP basis,
the operating margin increased to 26.8% from 25.4% in the third quarter of 2025.
The non-GAAP operating margin increase was primarily driven by operating
leverage from higher study volume for regulated safety assessment services, as
well as lower sourcing costs for large research models.
Manufacturing Solutions (Manufacturing)
Revenue for the Manufacturing segment was $178.9 million in the third quarter of
2026, a decrease of 6.2% from $190.7 million in the third quarter of 2025,
primarily driven by the CDMO divestiture. Organic revenue increased 7.4%, driven
by strong demand in both the Biologics Testing Solutions and Microbial Solutions
businesses.
The Manufacturing segment’s GAAP operating margin was 35.7%, compared to 20.9%
in the third quarter of 2025. On a non-GAAP basis, the operating margin
increased to 38.6% from 26.7% in the third quarter of 2025. The GAAP and non-
GAAP increases were driven primarily by the benefit of the CDMO divestiture.
Research Models and Services (RMS)
Revenue for the RMS segment was $207.5 million in the third quarter of 2026, a
decrease of 2.8% from $213.5 million in the third quarter of 2025, primarily
driven by the Cell Solutions divestiture. Organic revenue decreased by 0.6%, due
primarily to lower revenue for small research models in North America and for
large research models. The decline was partially offset by higher revenue for
small research models in China and for research model services, particularly the
Insourcing Solutions business.
In the third quarter of 2026, the RMS segment’s GAAP operating margin increased
to 19.9% from 16.2% in the third quarter of 2025, primarily due to lower costs
related to the Cell Solutions divestiture and restructuring initiatives. On a
non-GAAP basis, the operating margin decreased to 24.4% from 25.0%. The non-GAAP
operating margin decrease was primarily driven by the impact of an unfavorable
revenue mix, both geographically and related to large research models.
2026 Guidance Update
The Company is increasing its 2026 revenue and earnings per share guidance,
which was last updated on August 5, 2026. This increase primarily reflects the
third-quarter outperformance, which was principally driven by the better-than-
expected performance in the DSA segment and a lower tax rate. On a GAAP basis,
the Company is also increasing its earnings per share guidance, due primarily to
the third-quarter benefit associated with the reversal of acquired tax reserves.
3
Exhibit 99.1
The Company’s 2026 guidance for revenue and earnings per share is as follows:
2026 GUIDANCE CURRENT PRIOR
Revenue growth/(decrease), reported (2.0)% - (1.5)% (3.5)% - (2.5)%
Less: Contribution from acquisitions 0.0% - (0.5)% 0.0% - (0.5)%
Add: Impact from divestitures ~4.5% ~4.5%
Less: Favorable impact of foreign (0.5)% - (1.0)% (0.5)% - (1.0)%
exchange
Revenue growth/(decrease), organic (1) At least +1.5% 0.0% - 1.0%
GAAP EPS estimate $8.15 – $8.35 $3.05 – $3.35
Acquisition-related amortization (2) ~$2.10 ~$2.30
Acquisition- and divestiture-related ~$4.70 ~$4.75
costs (3)
Reversal of acquired tax reserves (4) -$5.03 --
Costs associated with restructuring
and ~$1.50 ~$1.20
efficiency initiatives (5)
Other, net (6) -$0.03 -$0.17
Non-GAAP EPS estimate $11.35 – $11.55 $11.15 – $11.45
Footnotes to Guidance Table:
(1) Organic revenue growth is defined as reported revenue growth adjusted for
completed acquisitions and divestitures (including the CDMO and Cell Solutions
businesses, as well as certain European Discovery Services sites), as well as
foreign currency translation.
(2) These adjustments primarily include amortization related to intangible
assets, as well as the purchase accounting step-up on inventory and certain
long-term biological assets.
(3) These adjustments include costs related to the evaluation and integration of
acquisitions and divestitures, as well as a net loss on divestitures and other
transaction-related tax adjustments.
(4) This adjustment is related to the third-quarter benefit associated with the
reversal of acquired tax reserves following newly enacted tax legislation and
completion of certain tax requirements in a foreign jurisdiction.
(5) These adjustments primarily include site consolidation (including site
transition costs), severance, impairment, third-party consulting and
professional services, and other costs related to the Company’s restructuring
actions and efficiency initiatives. These adjustments also include gains and/or
losses on the sale of certain assets and real estate.
(6) These adjustments primarily include: (i) certain venture capital and other
strategic investment losses/(gains), net. This item only includes recognized
gains or losses on certain investments. The Company does not forecast the future
performance of these investments; and (ii) reductions to a previous $27 million
inventory charge associated with a non-human primate (NHP) supply matter. As a
result of the resolution of the U.S. government investigations during fiscal
year 2025, certain NHPs were subsequently utilized.
Webcast
Charles River has scheduled a live webcast on Wednesday, November 4, 2026, at
9:00 a.m. ET to discuss matters relating to this press release. To participate,
please go to ir.criver.com and select the webcast link. You can also find the
associated slide presentation and reconciliations of GAAP financial measures to
non-GAAP financial measures on the website.
4
Exhibit 99.1
Non-GAAP Reconciliations
The Company reports non-GAAP results in this press release, which exclude often-
one-time charges and other items that are outside of normal operations. A
reconciliation of GAAP to non-GAAP results is provided in the schedules at the
end of this press release.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as non-GAAP
earnings per share, non-GAAP operating income, non-GAAP operating margin, and
non-GAAP net income. Non-GAAP financial measures exclude, but are not limited
to, the amortization of intangible assets and the purchase accounting step-up
adjustment on inventory and certain long term biological assets, and other
charges and adjustments related to our acquisitions and divestitures, including
expenses associated with evaluating and integrating acquisitions and
divestitures, including advisory fees, certain transition costs, and certain
other transaction-related costs, as well as fair value adjustments associated
with contingent consideration; charges, gains, and losses attributable to
businesses or properties we plan to close, consolidate, or divest, including the
divestitures of our CDMO and Cell Solutions businesses, the sale of certain of
our European Discovery Services sites, and the sale of certain assets including
real estate; severance and other costs associated with our restructuring
initiatives; investment gains or losses associated with our venture capital and
certain other strategic equity investments; certain legal costs and adjustments
related to an NHP inventory charge in our DSA segment related to now concluded
U.S. government investigations into the NHP supply chain; legal and advisory
costs related to entering into a Cooperation Agreement with a shareholder; tax
effect of all of the aforementioned matters; and adjustments related to the
derecognition of certain deferred tax assets due to the CDMO Gene Therapy
intangible asset impairment charge, the recognition of deferred tax assets
expected to be utilized as a result of changes to the Company's international
financing structure, the revaluation of deferred tax liabilities as a result of
foreign tax legislation, and the tax benefit recognized as a result of the
changes in tax law enacted in a foreign jurisdiction. This press release also
refers to our revenue on both a GAAP and non-GAAP basis: on a non-GAAP basis, we
define “organic revenue growth” as reported revenue growth adjusted for foreign
currency translation, acquisitions, and divestitures. We exclude these items
from the non-GAAP financial measures because they are outside our normal
operations. There are limitations in using non-GAAP financial measures, as they
are not presented in accordance with generally accepted accounting principles,
and may be different than non-GAAP financial measures used by other companies.
In particular, we believe that the inclusion of supplementary non-GAAP financial
measures in this press release helps investors to gain a meaningful
understanding of our core operating results and future prospects without the
effect of these often-one-time charges, and is consistent with how management
measures and forecasts the Company's performance, especially when comparing such
results to prior periods or forecasts. We believe that the financial impact of
our acquisitions and divestitures (and in certain cases, the evaluation of such
acquisitions and divestitures, whether or not ultimately consummated) is often
large relative to our overall financial performance, which can adversely affect
the comparability of our results on a period-to-period basis. In addition,
certain activities and their underlying associated costs, such as business
acquisitions, generally occur periodically but on an unpredictable basis. We
calculate non-GAAP integration costs to include third-party integration costs
incurred post-acquisition.
5
Exhibit 99.1
Presenting revenue on an organic basis allows investors to measure our revenue
growth exclusive of acquisitions, divestitures, and foreign currency exchange
fluctuations more clearly. Non-GAAP results also allow investors to compare the
Company’s operations against the financial results of other companies in the
industry who similarly provide non-GAAP results. The non-GAAP financial measures
included in this press release are not meant to be considered superior to or a
substitute for results of operations presented in accordance with GAAP. The
Company intends to continue to assess the potential value of reporting non-GAAP
results consistent with applicable rules and regulations. Reconciliations of the
non-GAAP financial measures used in this press release to the most directly
comparable GAAP financial measures are set forth in this press release, and can
also be found on the Company’s website at ir.criver.com.
Caution Concerning Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the
federal securities laws. Forward-looking statements may be identified by the use
of words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “would,”
“may,” “estimate,” “plan,” “outlook,” and “project,” and other similar
expressions that predict or indicate future events or trends or that are not
statements of historical matters. These statements also include statements
regarding: the projected and/or anticipated future financial performance of
Charles River and our specific businesses, including as delineated in our
forward-looking guidance, and particularly our expectations with respect to
revenue, the impact of foreign exchange, interest rates, and enhanced efficiency
initiatives, including our Create the Future initiative; our expectations with
respect to our ability to gain market share; our ability to create long-term
value for our shareholders and successfully execute on our strategic
initiatives, including our Pathway to Purpose strategic vision, and the impact
and results of such initiatives; the Company’s plans or prospects, expectations
and long-term goals associated with our business; earnings per share; operating
margin; client demand, particularly the future demand for drug discovery and
development products and services, including our expectations for future revenue
trends; our expectations with respect to booking trends and the impacts thereof;
our expectations with respect to pricing of our products and services; our
expectations with respect to future tax rates and the impact of such tax rates
on our business; our expectations with respect to the impact of acquisitions and
divestitures, including the acquisition of the assets of K.F. (Cambodia) Ltd.
and of PathoQuest SAS, the divestitures of the Company's CDMO and Cell Solutions
businesses, the sale of certain of our European Discovery Services sites, and
the sale of certain assets including real estate; our service offerings, client
perception, strategic relationships, revenue, revenue growth rates, revenue
growth drivers, and earnings; the development and performance of our services
and products, including our investments in our portfolio; market and industry
conditions including the outsourcing of services and identification of spending
trends by our clients and funding available to them; ability to gain market
share and capitalize on business and growth opportunities; the impact of our
restructuring initiatives, including annualized savings; and the impact of our
stock repurchase authorization. Forward-looking statements are based on Charles
River’s current expectations and beliefs, speak only as of the date of this
press release, and involve a number of risks and uncertainties that are
difficult to predict and that could cause actual results to differ materially
from those stated or implied by the forward-looking statements. Those risks and
uncertainties include, but are not limited to: the impact of NHP supply
constraints; changes and uncertainties in the global economy and financial
markets, including
6
Exhibit 99.1
disruptions in the global economy caused by geopolitical conflicts; the ability
to successfully integrate businesses we acquire, and risks and uncertainties
associated with businesses that we acquire; the timing and magnitude of our
share repurchases; negative trends in research and development spending,
negative trends in the level of outsourced services, or other cost reduction
actions by our clients; the ability to convert backlog to revenue; demand and
booking trends; special interest groups; contaminations; industry trends; new
displacement technologies; USDA and FDA regulations; changes in law; continued
availability of products and supplies; the impact of unauthorized access into
our information systems; loss of key personnel; interest rate and foreign
currency exchange rate fluctuations; changes in tax regulation and laws; changes
in generally accepted accounting principles; and any changes in business,
political, or economic conditions due to the threat of future terrorist activity
in the U.S. and other parts of the world, and related U.S. military action
overseas. A further description of these risks, uncertainties, and other matters
can be found in the Risk Factors detailed in Charles River's Annual Report on
Form 10-K as filed on February 18, 2026, as well as other filings we make with
the Securities and Exchange Commission. Because forward-looking statements
involve risks and uncertainties, actual results and events may differ materially
from results and events currently expected by Charles River. Charles River
assumes no obligation and expressly disclaims any duty to update information
contained in this press release except as required by law.
About Charles River
Charles River provides essential products and services to help pharmaceutical
and biotechnology companies, government agencies and leading academic
institutions around the globe accelerate their research and drug development
efforts. Our dedicated employees are focused on providing clients with exactly
what they need to improve and expedite the discovery, early-stage development
and safe manufacture of new therapies for the patients who need them. To learn
more about our unique portfolio and breadth of services, visit www.criver.com.
# # #
Investor Contact: Media Contact:
Todd Spencer Amy Cianciaruso
Corporate Vice President, Corporate Senior Vice President,
Investor Relations Chief Communications Officer
781.222.6455 781.222.6168
todd.spencer@crl.com amy.cianciaruso@crl.com
7
CHARL…
RIVER
LABOR…
INTER…
INC.
SCHED…
1
CONDE…
CONSO…
STATE…
OF
INCOME
(UNAU…
(in
thous…
except
for
per Three Septem… Septem… Nine Septem…
share Months 26, 27, Months 26, Septemb…
data) Ended 2026 2025 Ended 2026 27, 2025
──────────────────────────────────────────────────────────────────────────────
Servi… $ 780,341 $ 808,042 $ 2,386,… $ 2,446,8…
reven…
Produ… 202,391 196,810 595,860 574,354
reven…
Total 982,732 1,004,… 2,982,… 3,021,1…
reven…
Costs
and
expen…
Cost
of
servi…
provi…
(excl… 522,836 572,635 1,683,… 1,734,9…
amort…
of
intan…
asset…
Cost
of
produ…
sold
(excl… 102,026 93,425 282,982 272,625
amort…
of
intan…
asset…
Selli…
gener… 140,591 177,589 528,910 546,937
and
admin…
Amort…
of 14,641 27,404 44,575 158,052
intan…
assets
Opera… 202,638 133,799 442,423 308,602
income
Other
income
(expe…
Inter… 958 1,422 3,023 3,923
income
Inter… -28,525 -25,403 -85,607 -83,254
expen…
Other
expen… -4,414 -22,618 -165,9… -34,675
net
Income
before 170,657 87,200 193,885 194,596
income
taxes
Provi…
(bene…
for -163,7… 31,644 -124,9… 60,469
income
taxes
Net 334,444 55,556 318,882 134,127
income
Less:
Net
income
attri… 1,377 1,134 2,140 1,910
to
nonco…
inter…
Net
income
attri… $ 333,067 $ 54,422 $ 316,742 $ 132,217
to
common
share…
Earni…
per
common
share
Basic $ 6.97 $ 1.11 $ 6.56 $ 2.66
Dilut… $ 6.86 $ 1.10 $ 6.48 $ 2.65
Weigh…
number
of
common
shares
outst…
Basic 47,803 49,213 48,258 49,680
Dilut… 48,584 49,426 48,899 49,866
8
CHARLES RIVER
LABORATORIES
INTERNATIONAL,
INC.
SCHEDULE 2
CONDENSED
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
(in thousands,
except per
share amounts)
Assets September 26, December 27,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 200,381 $ 213,770
equivalents
Trade
receivables and
contract
assets,
net of
allowances for 735,305 708,856
credit losses
of
$10,511 and
$10,463,
respectively
Inventories 319,638 299,103
Prepaid assets 97,265 96,108
Other current 182,439 129,212
assets
Total current 1,535,028 1,447,049
assets
Property, plant
and equipment, 1,497,335 1,655,219
net
Venture capital
and strategic 194,521 206,972
equity
investments
Operating lease
right-of-use 332,330 361,415
assets, net
Goodwill 3,084,112 2,764,253
Intangible 238,662 339,995
assets, net
Deferred tax 67,467 67,334
assets
Other assets 502,052 293,185
Total assets $ 7,451,507 $ 7,135,422
Liabilities,
Redeemable
Noncontrolling
Interests and
Equity
Current
liabilities:
Accounts $ 144,507 $ 148,800
payable
Accrued 225,937 268,854
compensation
Deferred 204,204 210,418
revenue
Accrued 285,737 270,085
liabilities
Other current 228,873 222,158
liabilities
Total current 1,089,258 1,120,315
liabilities
Long-term debt,
net and finance 2,443,461 2,136,360
leases
Operating lease
right-of-use 405,351 434,048
liabilities
Deferred tax 81,815 95,203
liabilities
Other long-term 156,356 138,302
liabilities
Total 4,176,241 3,924,228
liabilities
Redeemable
noncontrolling 43,173 41,263
interests
Equity:
Preferred
stock, $0.01
par value;
20,000
shares — —
authorized; no
shares issued
and
outstanding
Common stock,
$0.01 par
value; 120,000
shares
authorized;
49,699 shares
issued
and 47,876
shares 497 492
outstanding as
of
September 26,
2026, and
49,217 shares
issued and
outstanding as
of December
27, 2025
Additional 2,035,124 1,947,301
paid-in capital
Retained 1,705,362 1,388,620
earnings
Treasury stock,
at cost, 1,823
and zero
shares, as of
September 26, -323,281 —
2026 and
December 27,
2025,
respectively
Accumulated
other -190,691 -171,783
comprehensive
loss
Total Charles
River
Laboratories 3,227,011 3,164,630
International,
Inc. equity
Nonredeemable
noncontrolling 5,082 5,301
interest
Total equity 3,232,093 3,169,931
Total
liabilities,
redeemable $ 7,451,507 $ 7,135,422
noncontrolling
interests and
equity
9
CHARLES RIVER
LABORATORIES
INTERNATIONAL,
INC.
SCHEDULE 3
CONDENSED
CONSOLIDATED
STATEMENTS OF
CASH FLOWS
(UNAUDITED)
(in thousands)
Cash flows Nine Months
relating to Ended
operating September 26, September 27,
activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 318,882 $ 134,127
Adjustments to
reconcile net
income to
net cash
provided by
operating
activities:
Depreciation
and 206,701 325,035
amortization
Long-lived
asset 27,171 36,185
impairments
Stock-based 62,929 53,451
compensation
Deferred -4,089 -15,122
income taxes
Reversal of an
unrecognized
tax benefit
reserve and -245,638 —
related
interest and
penalties
Write down of 4,033 10,697
inventories
(Gains) losses
and
impairments on
venture
capital and -4,897 33,955
strategic
equity
investments,
net
(Gain) loss on -37,776 982
sale of assets
Provision for 1,935 4,559
credit losses
(Gain) loss on
divestitures, 180,300 -3,376
net
Other, net -8,538 2,324
Changes in
assets and
liabilities:
Trade
receivables
and contract -110,271 8,106
assets,
net
Inventories 64,440 -45,280
Accounts 25,601 40,747
payable
Accrued -26,898 81,870
compensation
Deferred 6,227 -12,319
revenue
Customer
contract 12,681 -533
deposits
Other assets
and 2,094 -65,282
liabilities,
net
Net cash
provided by 474,887 590,126
operating
activities
Cash flows
relating to
investing
activities
Acquisition of
businesses and
assets, -467,254 —
net of cash
acquired
Capital -133,823 -130,202
expenditures
Purchases of
investments
and
contributions -14,718 -12,544
to venture
capital
investments
Proceeds from
sale of 18,876 5,637
investments
Proceeds from
surrender of
life 58,127 —
insurance
policies
Proceeds from
sale of 176,563 17,441
businesses and
assets, net
Other, net -7,292 3,154
Net cash used
in investing -369,521 -116,514
activities
Cash flows
relating to
financing
activities
Proceeds from
long-term debt
and 1,420,223 1,070,861
revolving
credit
facility
Payments on
long-term
debt,
revolving -1,081,266 -1,141,500
credit
facility, and
finance lease
obligations
Proceeds from
exercises of 29,733 3
stock options
Purchase of -324,105 -360,577
treasury stock
Payment of
contingent
consideration
and -111,394 -21,822
deferred
acquisition
consideration
Purchase of
remaining
equity
interests — -19,140
of other
redeemable
noncontrolling
interest
Other, net -4,274 -12,687
Net cash used
in financing -71,083 -484,862
activities
Effect of
exchange rate
changes on
cash, -1,199 14,900
cash
equivalents,
and restricted
cash
Net change in
cash, cash
equivalents, 33,084 3,650
and restricted
cash
Cash, cash
equivalents,
and restricted 215,997 205,570
cash,
beginning of
period
Cash, cash
equivalents,
and restricted $ 249,081 $ 209,220
cash, end of
period
10
CH…
RI…
LA…
IN…
IN…
SC…
4
RE…
OF
GA…
TO
NO…
SE…
BU…
SE…
IN…
(U…
(in
th…
ex… Thr… Ni…
pe… Mon… Mo…
Di… End… En…
and Sep… Se… Se… Se…
Sa… 26, 27, 26, 27,
As… 2026 20… 20… 20…
──────────────────────────────────────────────────────────────────────────────
Rev… $ 596… $ 600… $ 1,7… $ 1,8…
Ope… 172… 123… 400… 339…
inc…
Ope…
inc…
as a 28.9 % 20.5 % 22.3 % 18.8 %
% of
rev…
Add
bac…
Amo…
rel… 22,… 19,… 57,… 55,…
to
acq…
Acq…
int…
and -43… 2,4… -35… 4,7…
div…
adj…
Sev… 4,4… -148 8,1… 5,0…
Ass… — 693 3,2… 22,…
imp…
Cost
sav…
and 5,1… 3,9… 13,… 10,…
eff…
ini…
Thi…
leg…
and
adv…
cos… -1,… 3,2… -8,… 25,…
and
cer…
rel…
ite…
Tot…
non…
adj… $ -12… $ 29,… $ 39,… $ 123…
to
ope…
inc…
Ope…
inc…
exc… $ 159… $ 152… $ 439… $ 463…
non…
adj…
Non…
ope…
inc… 26.8 % 25.4 % 24.4 % 25.6 %
as a
% of
rev…
Dep…
and $ 45,… $ 44,… $ 126… $ 128…
amo…
Cap… $ 30,… $ 25,… $ 87,… $ 78,…
exp…
Ma…
So…
Rev… $ 178… $ 190… $ 557… $ 570…
Ope… 63,… 39,… 176… 43,…
inc…
Ope…
inc…
as a 35.7 % 20.9 % 31.6 % 7.6 %
% of
rev…
Add
bac…
Amo…
rel… 2,1… 8,2… 6,1… 100…
to
acq…
Acq…
int…
and 1,4… — 4,1… —
div…
adj…
Sev… 1,3… 1,2… 806 3,1…
Ass… 316 91 567 6,4…
imp…
Cost
sav…
and — 1,2… 1,5… 4,2…
eff…
ini…
Tot…
non…
adj… $ 5,2… $ 10,… $ 13,… $ 114…
to
ope…
inc…
Ope…
inc…
exc… $ 69,… $ 50,… $ 189… $ 157…
non…
adj…
Non…
ope…
inc… 38.6 % 26.7 % 34.0 % 27.7 %
as a
% of
rev…
Dep…
and $ 7,7… $ 17,… $ 23,… $ 127…
amo…
Cap… $ 6,8… $ 5,1… $ 18,… $ 33,…
exp…
Re…
Mo…
and
Se…
Rev… $ 207… $ 213… $ 625… $ 639…
Ope… 41,… 34,… 127… 113…
inc…
Ope…
inc…
as a 19.9 % 16.2 % 20.4 % 17.8 %
% of
rev…
Add
bac…
Amo…
rel… 7,0… 12,… 21,… 36,…
to
acq…
Acq…
int…
and — — 67 14
div…
adj…
Sev… 817 136 1,4… 3,6…
Ass… — 4,6… 22,… 7,4…
imp…
Cost
sav…
and 1,5… 1,0… -18… 3,5…
eff…
ini…
Tot…
non…
adj… $ 9,4… $ 18,… $ 26,… $ 50,…
to
ope…
inc…
Ope…
inc…
exc… $ 50,… $ 53,… $ 153… $ 164…
non…
adj…
Non…
ope…
inc… 24.4 % 25.0 % 24.5 % 25.8 %
as a
% of
rev…
Dep…
and $ 16,… $ 21,… $ 48,… $ 63,…
amo…
Cap… $ 9,4… $ 3,1… $ 25,… $ 14,…
exp…
Un…
Co… $ -74… $ -63… $ -26… $ -18…
Ov…
Add
bac…
Acq…
int…
and 10,… 772 45,… 3,6…
div…
adj…
Sev… 2,4… 3,5… 7,1… 5,1…
Ass… 422 — 965 184
imp…
Cost
sav…
and 8,1… 767 19,… 1,4…
eff…
ini…
Thi…
leg…
and — -146 — 6,2…
adv…
cos…
Tot…
non…
adj… $ 21,… $ 4,9… $ 72,… $ 16,…
to
ope…
exp…
Una…
cor…
ove… $ -53… $ -58… $ -18… $ -17…
exc…
non…
adj…
To…
Rev… $ 982… $ 1,0… $ 2,9… $ 3,0…
Ope… 202… 133… 442… 308…
inc…
Ope…
inc…
as a 20.6 % 13.3 % 14.8 % 10.2 %
% of
rev…
Add
bac…
Amo…
rel… 31,… 40,… 85,… 192…
to
acq…
Acq…
int…
and -31… 3,1… 13,… 8,4…
div…
adj…
Sev… 9,1… 4,7… 17,… 16,…
Ass… 738 5,4… 26,… 36,…
imp…
Cost
sav…
and 14,… 7,0… 16,… 19,…
eff…
ini…
Thi…
leg…
and
adv…
cos… -1,… 3,0… -8,… 31,…
and
cer…
rel…
ite…
Tot…
non…
adj… $ 23,… $ 63,… $ 151… $ 305…
to
ope…
inc…
Ope…
inc…
exc… $ 225… $ 197… $ 594… $ 614…
non…
adj…
Non…
ope…
inc… 23.0 % 19.7 % 19.9 % 20.3 %
as a
% of
rev…
Dep…
and $ 72,… $ 85,… $ 206… $ 325…
amo…
Cap… $ 46,… $ 35,… $ 133… $ 130…
exp…
Cha…
Riv…
man…
bel…
that
sup…
non…
fin…
mea…
pro…
use…
inf…
to
all…
inv…
to
gain
a
mea…
und…
of
our
core
ope…
res…
and
fut…
pro…
wit…
the
eff…
of
oft…
cha…
and
oth…
ite…
whi…
are
out…
our
nor…
ope…
con…
with
the
man…
in
whi…
man…
mea…
(1) and
for…
the
Com…
per…
The
sup…
non…
fin…
mea…
inc…
are
not
mea…
to
be
con…
sup…
to,
or a
sub…
for
res…
of
ope…
pre…
in
acc…
with
U.S.
GAA…
The
Com…
int…
to
con…
to
ass…
the
pot…
val…
of
rep…
non…
res…
con…
with
app…
rul…
reg…
and
gui…
The…
adj…
are
rel…
to
the
eva…
and
int…
of
acq…
and
div…
and
pri…
inc…
tra…
adv…
cer…
thi…
int…
cer…
com…
cos…
and
rel…
cos…
as
well
as
fair
val…
adj…
ass…
with
con…
con…
arr…
For
(2) the
thr…
and
nine
mon…
end…
Sep…
26,
202…
this
amo…
inc…
a
$44…
mil…
tax
ben…
res…
from
new…
ena…
tax
leg…
and
com…
of
cer…
tax
req…
in a
for…
jur…
wit…
the
Dis…
and
Saf…
Ass…
rep…
seg…
Cost
sav…
and
eff…
ini…
in
2026
pri…
inc…
site
con…
cha…
rel…
to
rec…
site
opt…
act…
cost
of
pro…
ser…
rel…
to
cer…
imp…
ini…
and
a
pre…
gain
(3) of
$38…
mil…
in
con…
with
the
sale
of
cer…
ass…
in
Wil…
Mas…
The
gain
was
rec…
wit…
the
RMS
rep…
seg…
and
una…
cor…
for
$23…
mil…
and
$15…
mil…
res…
Wit…
the
DSA
bus…
thi…
leg…
and
adv…
cos…
inc…
dur…
fis…
2025
rel…
to
U.S.
gov…
inv…
into
the
NHP
sup…
cha…
whi…
were
con…
in
fis…
202…
Also
inc…
wit…
DSA
res…
for
fis…
2026
is
the
uti…
of
pre…
wri…
NHP
inv…
(4) res…
in
par…
rev…
of
the
$27
mil…
inv…
cha…
rec…
in
fis…
2024
fol…
the
res…
of
the
mat…
in
fis…
202…
Wit…
Una…
Cor…
thi…
leg…
and
adv…
cos…
inc…
dur…
fis…
2025
are
ass…
with
the
exe…
of
the
Coo…
Agr…
with
a
sha…
Amo…
rel…
to
acq…
for
the
nine
mon…
end…
Sep…
27,
2025
inc…
$71…
mil…
of
(5) acc…
amo…
of
cer…
cli…
rel…
in
the
Bio…
Sol…
rep…
unit
wit…
the
Man…
Sol…
rep…
seg…
11
CHAR…
RIVER
LABO…
INTE…
INC.
SCHE…
5
RECO…
OF
GAAP
EARN…
TO
NON-…
EARN…
(UNA…
(in
thou…
exce…
per Three Septe… Septe… Nine Sept… Septe…
share Months 26, 27, Months 26, 27,
data) Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
inco…
avai…
to
Char…
River $ 333,0… $ 54,422 $ 316,… $ 132,2…
Labo…
Inte…
Inc.
comm…
shar…
Add
back:
Non-…
adju…
to 22,123 62,632 148,… 302,1…
oper…
inco…
Vent…
capi…
and
stra…
equi… 2,231 20,201 -4,6… 31,594
inve…
loss…
and
impa…
net
(Gai…
loss 461 — 180,… -3,376
on
dive…
Accr…
of
defe… 1,081 — 2,741 —
acqu…
cons…
Tax
effe…
of
non-…
adju…
Enac…
tax — 3,236 — 3,236
law
chan…
Tax
impa… — — -35,… —
of
dive…
Inte…
on
acqu… — — 11,2… —
unce…
tax
posi…
Reve…
of an
unre…
tax
bene…
rese… -201,… — -201… —
and
rela…
inte…
and
pena…
Tax
effe…
of
the -7,778 -20,1… -20,… -72,3…
rema…
non-…
adju…
Net
inco…
avai…
to
Char…
River
Labo… $ 150,1… $ 120,3… $ 398,… $ 393,4…
Inte…
Inc.
comm…
shar…
excl…
non-…
adju…
Weig…
aver…
shar… 47,803 49,213 48,2… 49,680
outs…
-
Basic
Effe…
of
dilu…
secu…
Stock
opti…
rest…
stock
units 781 213 641 186
and
perf…
share
units
Weig…
aver…
shar… 48,584 49,426 48,8… 49,866
outs…
-
Dilu…
Earn…
per
share
attr…
to
comm…
shar…
Basic $ 6.97 $ 1.11 $ 6.56 $ 2.66
Dilu… $ 6.86 $ 1.10 $ 6.48 $ 2.65
Basi…
excl… $ 3.14 $ 2.45 $ 8.25 $ 7.92
non-…
adju…
Dilu…
excl… $ 3.09 $ 2.43 $ 8.14 $ 7.89
non-…
adju…
Charl…
River
manag…
belie…
that
suppl…
non-G…
finan…
measu…
provi…
useful
infor…
to
allow
inves…
to
gain a
meani…
under…
of our
core
opera…
resul…
and
future
prosp…
witho…
the
effect
of
often…
charg…
and
other
items
which
are
outsi…
our
normal
opera…
consi…
with
the
manner
in
which
manag…
measu…
(1) and
forec…
the
Compa…
perfo…
The
suppl…
non-G…
finan…
measu…
inclu…
are
not
meant
to be
consi…
super…
to, or
a
subst…
for
resul…
of
opera…
prepa…
in
accor…
with
U.S.
GAAP.
The
Compa…
inten…
to
conti…
to
assess
the
poten…
value
of
repor…
non-G…
resul…
consi…
with
appli…
rules,
regul…
and
guida…
This
amount
exclu…
non-G…
(2) adjus…
attri…
to
nonco…
inter…
holde…
The
amount
inclu…
in the
nine
month
period
ended
Septe…
26,
2026
prima…
refle…
a
$181.7
milli…
loss
on the
CDMO
and
Cell
Solut…
(3) Dives…
net
with a
$1.4
milli…
gain
on the
Europ…
Disco…
Dives…
The
amount
inclu…
in
2025
relat…
to a
gain
on the
sale
of a
DSA
site.
Repre…
non-c…
inter…
expen…
recog…
from
the
accre…
of
(4) defer…
purch…
consi…
assoc…
with
the
Cambo…
NHP
Suppl…
acqui…
The
amount
inclu…
in the
nine
month
period
ended
Septe…
26,
2026
refle…
the
tax
benef…
resul…
from
the
(5) rever…
of an
unrec…
tax
benef…
reser…
follo…
newly
enact…
tax
legis…
and
compl…
of
certa…
tax
requi…
in a
forei…
juris…
12
CHA…
RIV…
LAB…
INT…
INC.
SCH…
6
REC…
OF
GAAP
REV…
GRO…
TO
NON…
REV…
GRO…
ORG…
(UN…
Th…
Mo…
En… Tot… DSA MS RMS
Se… CRL Seg… Seg… Seg…
26,
20…
Re…
gr… -2.2 % -0… % -6… % -2… %
re…
(I…
de…
due — % 0.2 % 0.2 % -0… %
to
fo…
ex…
Co…
fr… -0.2 % — % -0… % — %
ac…
Im…
of 7.1 % 6.4 % 14… % 2.9 %
di…
No…
re… 4.7 % 5.9 % 7.4 % -0… %
gr…
or…
Ni…
Mo…
En… Tot… DSA MS RMS
Se… CRL Seg… Seg… Seg…
26,
20…
Re…
gr… -1.3 % -0… % -2… % -2… %
re…
(I…
de…
due -1.1 % -0… % -1… % -1… %
to
fo…
ex…
Co…
fr… -0.1 % — % -0… % — %
ac…
Im…
of 3.5 % 2.9 % 8.1 % 1.6 %
di…
No…
re… 1.0 % 1.5 % 3.8 % -2… %
gr…
or…
Cha…
Riv…
man…
bel…
that
sup…
non…
fin…
mea…
pro…
use…
inf…
to
all…
inv…
to
gain
a
mea…
und…
of
our
core
ope…
res…
and
fut…
pro…
wit…
the
eff…
of
oft…
cha…
and
oth…
ite…
whi…
are
out…
our
nor…
ope…
con…
with
the
man…
in
whi…
man…
mea…
(1) and
for…
the
Com…
per…
The
sup…
non…
fin…
mea…
inc…
are
not
mea…
to
be
con…
sup…
to,
or a
sub…
for
res…
of
ope…
pre…
in
acc…
with
U.S.
GAA…
The
Com…
int…
to
con…
to
ass…
the
pot…
val…
of
rep…
non…
res…
con…
with
app…
rul…
reg…
and
gui…
The
con…
from
(2) acq…
ref…
only
com…
acq…
Imp…
of
div…
rel…
to
the
sale
of
cer…
Eur…
Dis…
Ser…
bus…
in
May
2026
wit…
the
DSA
rep…
seg…
as
(3) well
as
the
sale
of
the
CDMO
and
Cell
Sol…
bus…
in
May
2026
wit…
the
Man…
rep…
seg…
and
RMS
rep…
seg…
res…
Org…
rev…
gro…
is
def…
as
rep…
(4) rev…
gro…
adj…
for
acq…
div…
and
for…
exc…
13