olivLaw · US equity research
Charles River Laboratories International, Inc. CRL
Services-Commercial Physical & Biological Research · SIC 8731 · Vertical: Services-Commercial Physical & Biological Research (SIC 8731)
Charles River Laboratories (CRL) is a full-service global non-clinical drug development partner with total revenue of $4.0 billion in 2025. Second-quarter 2026 revenue was $1.00 billion and 2026 guidance was raised, driven by improving demand in the DSA segment. The company is still reshaping its portfolio through divestitures and acquisitions.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Charles River Laboratories International, Inc. (CRL) stock was 326.29 USD (−7.27% on the day), with market capitalisation 15.6 bn USD, P/E 385.5 on diluted EPS of 0.85 USD over the last 12 months, beta 1.36, 52-week range 149.93–376.10 USD. Latest reported quarter (Q3 2026): revenue of 982.7 m USD (−2.2% YoY), net income of 333.1 m USD (+512.0% YoY), diluted EPS 6.86 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 49.9
- neutral
- Bollinger (20, 2)
- 275.92 – 383.76
- in the lower half of the band · %B 0.47 · band width 32.7%
- SMA 50 / 200
- 304.42 / 223.56
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 14.83 / 16.07
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +5.0% | −1.1% | +6.1 pp | — |
| 3 months | +25.1% | −0.5% | +25.6 pp | — |
| 6 months | +79.5% | +4.4% | +75.2 pp | — |
| Year to date | +63.6% | +12.3% | +51.3 pp | — |
| 1 year | +83.5% | +13.5% | +69.9 pp | +10.9% |
| 3 years | +79.4% | +76.4% | +3.0 pp | −23.9% |
| 5 years | −13.0% | +63.7% | −76.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 26 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 984.2 m | 1.0 bn | 1.0 bn | 994.2 m | 995.8 m | 1.0 bn | 982.7 m |
| SG&A | 195.7 m | 177.8 m | 191.5 m | 177.6 m | 196.1 m | 159.4 m | 228.9 m | 140.6 m |
| Operating income | -167.7 m | 74.7 m | 100.1 m | 133.8 m | -283.4 m | 119.9 m | 119.9 m | 202.6 m |
| Depreciation & amortisation | 102.1 m | 120.4 m | 119.5 m | 85.2 m | 78.3 m | 67.2 m | 67.3 m | 72.3 m |
| Interest expense | 28.2 m | 27.9 m | 30.0 m | 25.4 m | 23.8 m | 26.7 m | 30.3 m | 28.5 m |
| Income tax | -3.0 m | 10.1 m | 18.7 m | 31.6 m | -17.8 m | -15.1 m | 53.9 m | -163.8 m |
| Net income | -214.5 m | 25.5 m | 52.3 m | 54.4 m | -276.6 m | -14.8 m | -1.5 m | 333.1 m |
| Diluted EPS | -4.18 ≈ | 0.50 | 1.06 | 1.10 | -5.68 ≈ | -0.30 | -0.03 | 6.86 |
| Operating cash flow | 159.4 m | 171.7 m | 204.6 m ≈ | 213.8 m ≈ | 147.5 m | 41.1 m | 179.7 m ≈ | 254.1 m ≈ |
| Capex | 75.6 m | 59.3 m | 35.3 m | 35.6 m | 89.0 m | 55.9 m | 31.1 m ≈ | 46.8 m ≈ |
| Share repurchases | 124.0 k | 353.1 m | 7.4 m ≈ | 93.0 k ≈ | 96.0 k | 208.3 m | 115.6 m ≈ | 224.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 97 percentile of its own 38-quarter history (min 20.9, median 28.2, max 955.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.3 bn | 2.6 bn | 2.9 bn | 3.5 bn | 4.0 bn | 4.1 bn | 4.0 bn | 4.0 bn |
| Revenue YoY | +22.0% | +15.7% | +11.5% | +21.1% | +12.3% | +3.9% | −1.9% | −0.9% |
| Net income | 226.4 m | 252.0 m | 364.3 m | 391.0 m | 486.2 m | 474.6 m | 22.2 m | -144.3 m |
| Net income YoY | +83.5% | +11.3% | +44.6% | +7.3% | +24.4% | −2.4% | −95.3% | −750.1% |
| Diluted EPS | 4.62 | 5.07 | 7.20 | 7.60 | 9.48 | 9.22 | 0.20 | -2.91 |
| Diluted EPS YoY | +81.9% | +9.7% | +42.0% | +5.6% | +24.7% | −2.7% | −97.8% | −1,555.0% |
| net % | 10.0% | 9.6% | 12.5% | 11.0% | 12.2% | 11.5% | 0.5% | -3.6% |
| Free cash flow | 301.1 m | 340.4 m | 380.0 m | 532.0 m | 294.9 m | 365.4 m | 501.6 m | 518.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 27 Dec 2025
- Cash
- 213.8 m USD
- Financial debt
- 166.0 k USD
- Net debt
- -213.6 m USD
- Equity
- 3.2 bn USD
- Total assets
- 7.1 bn USD
- Debt / equity
- 0.00x
- Current ratio
- 1.29x
- ROE
- -4.3%
- ROA
- -2.0%
- FCF margin
- 12.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.9 bn | 3.5 bn | 4.0 bn | 4.1 bn | 4.0 bn | 4.0 bn | SEC (XBRL)· 18 Feb 2026verified |
| SG&A | 528.9 m | 619.9 m | 665.1 m | 747.9 m | 751.0 m | 743.1 m | SEC (XBRL)· 18 Feb 2026verified |
| Operating income | 432.7 m | 589.9 m | 651.0 m | 617.3 m | 227.3 m | 25.2 m | SEC (XBRL)· 18 Feb 2026verified |
| Depreciation & amortisation | 234.9 m | 265.5 m | 303.9 m | 314.1 m | 361.7 m | 403.3 m | SEC (XBRL)· 18 Feb 2026verified |
| EBITDA | 667.7 m ≈ | 855.4 m ≈ | 954.8 m ≈ | 931.4 m ≈ | 589.1 m ≈ | 428.5 m ≈ | SEC (XBRL)· 18 Feb 2026derived |
| Interest expense | 86.4 m | 73.9 m | 59.3 m | 136.7 m | 126.3 m | 107.0 m | SEC (XBRL)· 18 Feb 2026verified |
| Pre-tax income | 447.1 m | 480.7 m | 623.0 m | 581.3 m | 93.1 m | -99.5 m | SEC (XBRL)· 18 Feb 2026verified |
| Income tax | 81.8 m | 81.9 m | 130.4 m | 100.9 m | 67.8 m | 42.7 m | SEC (XBRL)· 18 Feb 2026verified |
| Net income | 364.3 m | 391.0 m | 486.2 m | 474.6 m | 22.2 m | -144.3 m | SEC (XBRL)· 18 Feb 2026verified |
| Diluted EPS | 7.20 | 7.60 | 9.48 | 9.22 | 0.20 | -2.91 | SEC (XBRL)· 18 Feb 2026verified |
| Weighted average diluted shares | 50.6 m | 51.4 m | 51.3 m | 51.5 m | 51.6 m | 49.6 m | SEC (XBRL)· 18 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 228.4 m | 241.2 m | 233.9 m | 276.8 m | 194.6 m | 213.8 m | SEC (XBRL)· 18 Feb 2026verified |
| Receivables | 617.7 m | 642.9 m | 752.4 m | 780.4 m | 720.9 m | 708.9 m | SEC (XBRL)· 18 Feb 2026verified |
| Inventories | 185.7 m | 199.1 m | 255.8 m | 380.3 m | 278.5 m | 299.1 m | SEC (XBRL)· 18 Feb 2026verified |
| Current assets | 1.2 bn | 1.3 bn | 1.4 bn | 1.6 bn | 1.4 bn | 1.4 bn | SEC (XBRL)· 18 Feb 2026verified |
| Property, plant & equipment, net | 1.1 bn | 1.3 bn | 1.5 bn | 1.6 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 18 Feb 2026verified |
| Goodwill | 1.8 bn | 2.7 bn | 2.8 bn | 3.1 bn | 2.8 bn | 2.8 bn | SEC (XBRL)· 18 Feb 2026verified |
| Intangibles (excl. goodwill) | 787.6 m | 1.1 bn | 955.3 m | 864.1 m | 723.4 m | 340.0 m | SEC (XBRL)· 18 Feb 2026verified |
| Total assets | 5.5 bn | 7.0 bn | 7.6 bn | 8.2 bn | 7.5 bn | 7.1 bn | SEC (XBRL)· 18 Feb 2026verified |
| Accounts payable | 122.5 m | 198.1 m | 205.9 m | 168.9 m | 140.3 m | 148.8 m | SEC (XBRL)· 18 Feb 2026verified |
| Short-term debt | 47.2 m | 101.0 k | 1.3 m | 3.2 m | 155.0 k | 166.0 k | SEC (XBRL)· 18 Feb 2026verified |
| Current liabilities | 839.8 m | 1.0 bn | 1.1 bn | 1.1 bn | 994.1 m | 1.1 bn | SEC (XBRL)· 18 Feb 2026verified |
| Total liabilities | 3.3 bn | 4.4 bn | 4.6 bn | 4.5 bn | 4.0 bn | 3.9 bn | SEC (XBRL)· 18 Feb 2026verified |
| Equity | 2.1 bn | 2.5 bn | 3.0 bn | 3.6 bn | 3.5 bn | 3.2 bn | SEC (XBRL)· 18 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 546.6 m | 760.8 m | 619.6 m | 683.9 m | 734.6 m | 737.6 m | SEC (XBRL)· 18 Feb 2026verified |
| Capex | 166.6 m | 228.8 m | 324.7 m | 318.5 m | 233.0 m | 219.2 m | SEC (XBRL)· 18 Feb 2026verified |
| Free cash flow | 380.0 m ≈ | 532.0 m ≈ | 294.9 m ≈ | 365.4 m ≈ | 501.6 m ≈ | 518.5 m ≈ | SEC (XBRL)· 18 Feb 2026derived |
| Investing cash flow | -601.5 m | -1.4 bn | -607.9 m | -563.2 m | -245.1 m | -209.3 m | SEC (XBRL)· 18 Feb 2026verified |
| Financing cash flow | 47.2 m | 672.6 m | -42.4 m | -85.5 m | -550.9 m | -536.7 m | SEC (XBRL)· 18 Feb 2026verified |
| Share repurchases | 24.0 m | 40.7 m | 38.7 m | 24.2 m | 119.2 m | 360.7 m | SEC (XBRL)· 18 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 33 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 15.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet60
- Growth3
- Quality50
- Returns30
- Valuation9
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 29.90 – 231.72 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)126.66 – 189.50 (Mid 151.21)WACC 9.3% · starting FCFF 491.5 m USD · terminal value share of EV 72%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 38.2%
- Peers: EV/EBITDA181.08 – 231.72 (Mid 203.58)3 companies used · median multiple 21.5x · quartiles 19.1x – 24.6xICLR, IQV, NRC
- Peers: P/E29.90 – 56.23 (Mid 43.02)4 companies used · median multiple 50.8x · quartiles 35.3x – 66.4xICLR, INCY, IQV, MEDP
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 33/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 4.3% | 18 (on a fixed band) | 12% |
| Net margin · Quality | 1.0% | 55 (vs peers) | 7% |
| FCF conversion · Quality | 994.4% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 0.3% | 3 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | -0.4x | 100 (on a fixed band) | 12% |
| Interest coverage · Balance sheet | 1.5x | 0 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.4x | 51 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 385.5x | 0 (vs peers) | 12% |
| EV/EBITDA · Valuation | 34.8x | 0 (on a fixed band) | 12% |
| FCF yield · Valuation | 2.6% | 32 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | 2.1% | 30 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet60/100 · 3/3 factors with a value
- Growth· partial3/100 · 1/2 factors with a value
- Quality50/100 · 3/3 factors with a value
- Returns· partial30/100 · 1/2 factors with a value
- Valuation9/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (CRL). Latest full fiscal year: 2025; data up to 2026-09-26.
Figures computed from the financial statements: revenue 4.0 bn USD in 2025; YoY growth -0.9%; net margin 1.0%; ROE 1.2%; net debt/EBITDA -0.4x.
The estimated value range is 126.66–189.50 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 151.21 USD, the price of 326.29 USD leaves a potential of -53.7% (value / price − 1) and a margin of safety of -115.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 33/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 994.4%
- Net debt / EBITDA: -0.4x
What contradicts it
- ROIC: 4.3%
- Revenue CAGR 3Y: 0.3%
- Interest coverage: 1.5x
- P/E (TTM): 385.5x
- EV/EBITDA: 34.8x
- Shareholder yield (distributions): 2.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Payout ratio (FCF).
Versus the vertical median
Services-Commercial Physical & Biological Research (SIC 8731) · same industry (4-digit SIC) · compared with 11 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| IQVIqvia Holdings Inc. | 43.5 bn | 32.0 | 21.7% | 8.1% | +5.9% | +15% / +23% |
| INCYIncyte Corporation | 25.0 bn | 65.2 | 7.8% | 6.7% | +21.2% | +18% / +126% |
| MEDPMedpace Holdings, Inc. | 18.4 bn | 36.4 | 117.9% | 18.2% | +20.0% | +11% / +143% |
| CRLCharles River Laboratories International, Inc. | 15.6 bn | 385.5 | 1.2% | 1.0% | −0.9% | +83% / +79% |
| ICLRICON plc | 15.6 bn | 70.0 | 2.5% | 2.8% | +0.8% | +10% / −24% |
| ABSIAbsci Corp | 1.8 bn | — | -57.7% | -7,756.4% | −38.2% | +231% / +528% |
| OABIOmniab, Inc. | 755.6 m | — | -16.5% | -108.1% | −29.3% | +186% / +18% |
| NRCNRC Health | 574.5 m | 95.9 | 248.1% | 4.5% | −4.0% | +59% / −35% |
| ONMDOnemednet Corporation | 269.2 m | — | — | -584.2% | +111.4% | −75% / −89% |
| MXCTMaxCyte, Inc. | 143.5 m | — | -20.4% | -114.8% | −14.5% | −21% / −71% |
| BIAFbioAffinity Technologies, Inc. | 23.7 m | — | -1,860.2% | -257.3% | −34.2% | −87% / −100% |
| ISPCiSpecimen Inc. | 2.1 m | — | -968.5% | -2,449.0% | −79.2% | −95% / −100% |
1- and 3-year price returns: for CRL from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 183.10 Total return -44% · Per year -44% | 324.39 Total return -1% · Per year -1% | 489.55 Total return 50% · Per year 50% |
| 3 years | 163.12 Total return -50% · Per year -21% | 326.53 Total return 0% · Per year 0% | 543.11 Total return 66% · Per year 19% |
| 5 years | 145.31 Total return -55% · Per year -15% | 328.68 Total return 1% · Per year 0% | 602.54 Total return 85% · Per year 13% |
- Exit P/E± 81.63
- Net margin± 57.14
- Annual revenue growth± 48.86
- Annual dilution± 4.80
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
In brief
Charles River Laboratories (CRL) is a full-service global non-clinical drug development partner with total revenue of $4.0 billion in 2025 1. Second-quarter 2026 revenue was $1.00 billion and 2026 guidance was raised, driven by improving demand in the DSA segment 3. The company is still reshaping its portfolio through divestitures and acquisitions 2.
SWOT
Strengths
- The company holds a leading global position in outsourced discovery and safety assessment and in research model production 1. It has a global network of sites and an integrated capability from models to testing 1.
- A diversified portfolio across complementary segments reduces dependence on any single business line 1. The company maintains a broad client base with long-standing relationships 1.
- Disciplined capital allocation, including share repurchases and divestment of non-core assets, shows active portfolio management 23.
Weaknesses
- Revenue declined in 2025 and in the early part of 2026 amid cautious client spending, and non-GAAP margins fell in the second quarter of 2026 13.
- Restructuring costs have remained high in recent years, indicating ongoing pressure on operating efficiency 12.
- Dependence on a limited number of non-human primate suppliers and the earlier government investigations drew attention to the supply chain 1.
Opportunities
- A continued recovery in demand from large and small biotechnology clients could support organic growth in DSA 3. Integration of the Cambodian primate supplier could strengthen supply control 2.
- Digital and AI-based solutions could improve study efficiency and attract new clients 3. Partnerships with technology companies could extend access to discovery projects 3.
- Outsourcing still has room to grow in discovery and in research model services, where penetration is lower 1.
Threats
- Cuts to client R&D budgets or delays in government funding could reduce study volumes 1. New regulation on animal testing could reduce demand for some services 1.
- Alternative methods that do not use animals could reduce demand for some products and services 1. Competition and price pressure in DSA remain risk factors 1.
- Cyber attacks and data security incidents could harm client relationships and the company's reputation 1.
Risks
- Disruption of non-human primate supplyhigh
Several offerings depend on a limited source of non-human primates. An interruption could affect DSA services and RMS sales 1.
- Cautious client budgetshigh
Pharmaceutical and biotechnology clients may postpone or reduce projects, which could slow the DSA recovery 13.
- Contract terminationmedium
Many contracts can be terminated or reduced in scope with little notice, and termination fees are not always payable 1.
- Information securitymedium
Information systems hold sensitive client data, and security incidents could lead to lost contracts and regulatory action 1.
- Debt and impairmentlow
The level of debt and possible impairments of goodwill or intangible assets could affect future results 12.
Investment thesis
What would need to be true (bull case)
- Organic revenue growth turned positive in the second quarter of 2026 and guidance was raised, suggesting DSA demand could keep improving 3.
- The efficiency program and a more focused portfolio could support margins over the medium term if planned savings are delivered 13.
- A leading position in discovery and safety assessment, together with a broad client base, could support market share as client budgets recover 1.
What would break the thesis
- Revenue and non-GAAP margins declined in the second quarter of 2026 compared with the prior year, and a full recovery could take longer if budgets stay cautious 3.
- Dependence on non-human primates and earlier investigations could bring additional costs or delays if new supply chain problems arise 1.
- Divestment losses and restructuring costs could continue to weigh on reported results 23.
What to watch
- Development of DSA backlog and book-to-bill ratio versus revenueQ3 2026
- Delivery against the raised 2026 revenue and non-GAAP EPS guidance2026
- Non-GAAP operating margin trends in DSA and ManufacturingQ3 2026
- Portfolio strategy and plans presented at the Investor Day, including any acquisitions or divestmentsInvestor Day 24 September 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
The business
The company reports three segments: RMS (Research Models and Services), DSA (Discovery and Safety Assessment) and Manufacturing Solutions, each with a different weight in revenue 1. It has also focused its portfolio on core markets, divesting non-core assets representing about 7% of 2025 revenue 1. In May 2026 it sold its CDMO and Cell Solutions businesses and certain European discovery sites 3.
Commercial dynamics depend on client research budgets, which were cautious in recent years but are showing signs of recovery 2. DSA backlog was $2.0 billion at June 27, 2026, up slightly from $1.9 billion at the end of 2025 2. The company expects cost savings of about $300 million in cumulative annualized terms by the end of 2026, which could support margins 1.
Market context
The non-clinical research services market depends on R&D budgets of pharmaceutical and biotechnology companies, which have been cautious but are recovering 1. The company estimates that the regulated safety assessment market is 60% outsourced or more, while discovery and certain research model services are believed to be less outsourced 1.
The company cites development costs of up to $2.6 billion per FDA-approved drug excluding time costs, which could keep pressure on clients to outsource 1. Budget sensitivity of clients remains a key factor for volumes 1.
Trends
- Recovery in DSA demandtailwind
Demand improved in the second quarter of 2026 and guidance was raised mainly because of this trend 3. If the recovery holds, it could support DSA revenue in the second half of the year 3.
- Weaker research model demand in North Americaheadwind
RMS revenue declined in the second quarter of 2026, mainly due to lower small research model volumes in North America 3. Pressures from early-stage biotechnology and government funding could continue 1.
- Portfolio reshapingmixed
The sale of the CDMO and Cell Solutions businesses and some European sites could simplify the portfolio, but it creates accounting losses and reduces reported revenue 23. The long-term effect depends on how the released capital is reinvested 2.
- Efficiency and AI-enabled modernizationtailwind
The company is pursuing savings through process improvements and digitization, including an AI-enabled digital pathology solution 3. These efforts could support margins if implementation proceeds as planned 1.
Competitive position
The company's sources describe a highly competitive industry in which clients can choose among other providers of research and safety services and research models 1. Competition in discovery and safety assessment is an explicitly named risk factor 1.
The company sold certain European discovery businesses to IQVIA, indicating that this competitor is active in services for pharmaceutical clients 2. Competition could affect pricing and volumes, especially in DSA 1.
- IQVIAIQV
Company that acquired certain European discovery businesses from Charles River in May 2026, active in services for the pharmaceutical industry 2.
- Other discovery and safety assessment providers
Sources describe a competitive market with many providers of discovery and safety services without naming specific companies 1.
- Other non-human primate and research model suppliers
The company notes its dependence on a limited number of non-human primate suppliers, which points to competitors in the supply chain 1.
- Other microbial and biologics testing providers
The Manufacturing segment competes with quality-control and cell and gene therapy service providers, none named in the sources 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Charles River’s (CRL) Vaccine Push Meets A Bumpy QuarterYahoo Finance — News · 22 Sept 2026 · EN
- Charles River’s (CRL) New Automation Push Meets Old Margin ProblemsYahoo Finance — News · 22 Sept 2026 · EN
- Here’s Why This Strategy Decided to Exit Charles River Laboratories (CRL)Yahoo Finance — News · 21 Sept 2026 · EN
- Is Wall Street Bullish or Bearish on Charles River Laboratories Stock?Yahoo Finance — News · 26 Aug 2026 · EN
The latest news item in our archive is from 22 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report24 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report11 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement31 Mar 2026
- Current report25 Feb 2026Regulation FD disclosure
Sources
- [1] Form 10-K, fiscal year ended 2025-12-27 · SEC / Charles River Laboratories International, Inc. · 18 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-27 · SEC / Charles River Laboratories International, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Charles River Laboratories International, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.