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Charles River Labs (RV6) AI Stock Analysis

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DE:RV6

Charles River Labs

(XETRA:RV6)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
DSA demand and backlog strengthStrong DSA bookings, a book-to-bill above one, and a growing backlog provide durable visibility into future service revenue. Continued demand for regulated safety assessment supports utilization, customer retention, and operating leverage across the core business.
Negative Factors
Material earnings deteriorationThe sharp revenue contraction and compressed operating profitability indicate that recent earnings power remains materially below prior levels. Until volume, cost structure, and operating margins recover sustainably, weaker profits could constrain reinvestment and reduce resilience.

Charles River Labs (RV6) vs. iShares MSCI Germany ETF (EWG)

-25%0%25%50%75%100%125%150%DE:RV6+116.91%EWG+6.38%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
EUR 16.42B
Dividend Yield
―
Average Volume (3M)
51
Price to Earnings (P/E)
336.0
Beta (1Y)
0.73
Revenue Growth
-6.10%
EPS Growth
―
Country
Germany
Employees
19,000
Sector
Healthcare
Sector Strength
51
Industry
Medical - Diagnostics & Research

Charles River Labs Business Overview & Revenue Model

Company Description

Charles River Laboratories International, Inc. operates as a contract research organization (CRO), providing essential preclinical services to the pharmaceutical and biotechnology industries. Its core business revolves around assisting clients with d...

Charles River Labs Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:-0.35%|Next Earnings Date:Feb 24, 2027
Earnings Call SentimentPositive

The call was predominantly positive. The company reported stronger-than-expected revenue, earnings, margins, bookings, backlog, and cash flow; raised full-year revenue and EPS guidance; and described improving biopharmaceutical demand, manufacturing momentum, strategic client expansion, and progress in modernization and scientific initiatives. The main challenges were the RMS decline, continued academic and government funding pressure, limited current pricing power, higher interest expense, and the remaining recovery in early-stage biotech activity.

Positive Updates

Strong Third-Quarter Revenue and Earnings
Third-quarter revenue increased 4.7% year-over-year to its highest level since the second quarter of 2023, exceeding the prior outlook of 1%-3% organic growth. Non-GAAP earnings per share were $3.09, up 27.2% year-over-year and above the prior outlook of $2.90-$3.00.

Negative Updates

RMS Revenue Decline
RMS revenue declined 0.6% organically to $208 million, primarily due to lower revenue for small research models in North America and lower non-human primate revenue sold to third parties, partly related to shipment timing.

Company Guidance

For 2026, Charles River expects reported revenue decline of 1.5%-2%, organic revenue growth of at least 1.5%, DSA above 2% growth, manufacturing at a mid-single-digit growth rate, and RMS at a low single-digit organic decline; operating margin expansion of approximately 120-150 basis points; non-GAAP earnings per share of $11.35-$11.55, representing 10%-12% year-over-year growth; non-GAAP tax rate of approximately 23%; net interest expense at the upper end of $103 million-$108 million; unallocated corporate costs of approximately 6% of revenue; CapEx of approximately $200 million; and free cash flow of $400 million-$420 million. For the fourth quarter, it expects DSA organic growth at mid-single-digit and manufacturing at high single-digit rates, a modest reduction in the RMS growth rate, continued sequential operating margin improvement of approximately 150 basis points, manufacturing operating margin approaching 40%, and non-GAAP earnings per share growth of approximately 30%-40% year-over-year. For 2027, it expects a gradual improvement from the organic growth rate in 2026, with revenue growth increasing to the targeted 5%-7% range starting in 2028, and operating margin improvement higher than the 75 basis point average through 2030.

Charles River Labs Risk Analysis

Charles River Labs disclosed 41 risk factors in its most recent earnings report. Charles River Labs reported the most risks in the "Legal & Regulatory" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

1 New Risk
1.We have in the past experienced and in the future could experience unauthorized access into our information systems.Q1, 2026

Charles River Labs Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

DE:RV6 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
MEDPMEDP84Outperform$18.59B36.2199.76%―20.35%25.24%
TMOTMO77Outperform$266.10B37.7913.31%0.26%8.27%9.59%
LHLH75Outperform$30.12B30.3411.54%0.77%6.02%19.63%
IQVIQV74Outperform$45.34B33.0021.82%―8.88%13.11%
ICLRICLR69Neutral$15.33B34.144.85%―0.67%43.70%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%

* Healthcare Sector Average

Performance Comparison

-50%0%50%100%DE:RV6ICLRLHTMOIQVMEDPDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
DE:RV6 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:RV6Charles River Laboratories Intl314.30166.45112.58%
ICLRIcon Plc199.7036.2522.18%
LHLabcorp Holdings Inc.372.23107.0440.37%
TMOThermo Fisher Scientific717.71139.6124.15%
IQVIQVIA Holdings274.5350.9822.80%
MEDPMedpace Holdings Inc664.7773.4512.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.