EarningsQ2 2026 Earnings Report
MX:CRL Q2 2026 EPS Results
Actual EPS$54.90
Consensus EPS$49.84
Beat/MissBeat by +$5.05
One Year Ago EPS$56.72
MX:CRL Q2 2026 Revenue Results
Actual Revenue$18.25B
Expected Revenue$17.76B
Beat/MissBeat by +$488.63M
YoY Revenue Growth-2.72%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
MX:CRL Upcoming Earnings
Charles River Labs's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:CRL Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted clear operational progress: better-than-expected Q2 results, sequential margin improvement (420 bps), stronger DSA demand signals with bookings/backlog gains and raised full-year guidance (organic revenue guidance improved by ~150 bps and EPS guidance raised). Strategic actions (divestitures, NHP supply integration, partnerships, AI/digital investments and lab expansions) are positioned to drive further margin and growth upside. However, notable near-term challenges remain: RMS softness driven by North American academic/government funding constraints, Q2 free cash flow decline, higher corporate costs and an elevated tax rate headwind, plus timing risk with material NHP sourcing benefits largely back-loaded into Q4 and pricing improvements not yet realized. On balance, positives (outperformance, raised guidance, bookings/backlog strength, margin momentum and strategic partnerships) outweigh the lowlights, though some operational and timing risks persist.Company Guidance
Beat Quarterly Outlook and Raised Full-Year Guidance
Q2 results exceeded prior outlook for revenue and non-GAAP EPS; company raised full-year organic revenue guidance to flat to +1% (150 bps improvement) and increased non-GAAP EPS guidance to $11.15–$11.45 (8%–11% YoY growth).
Return to Organic Revenue Growth
Total company returned to organic revenue growth of +0.1% in Q2 — first organic improvement since Q3 2023; DSA organic revenue growth of +0.2% in Q2.
Strong DSA Demand Signals and Bookings
Net bookings rose to $701 million in Q2 (up 12.6% sequentially) and DSA backlog increased to $1.97 billion; DSA net book-to-bill improved to ~1.19x (highest in nearly four years) and proposal activity increased materially.
Significant Sequential Margin Expansion
Non-GAAP operating margin improved 420 basis points sequentially to 20.5% in Q2; Management expects at least 500 bps of margin improvement in H2 vs H1 and 120–150 bps of full-year operating margin expansion.
Manufacturing Margin & Revenue Strength
Manufacturing operating margin jumped to 37.8% in Q2 (benefitting from partial-quarter divestiture), and Manufacturing organic revenue increased +1.3% in Q2; Microbial Solutions saw high single-digit organic growth.
Earnings and Capital Deployment
Non-GAAP EPS was $3.02 in Q2, up 47% sequentially; repurchased $100 million of shares in Q2 (bringing YTD repurchases to $300 million) and net leverage improved to ~2.5x.
Improved Cash Outlook
Q2 free cash flow was $149 million; company raised full-year free cash flow guidance to $400–$420 million (from $375–$400 million), driven largely by higher earnings expectations.
Strategic Scientific & Partnership Progress
Announced collaborations with Eli Lilly (TuneLab AI-enabled drug discovery support) and Arovella Therapeutics (NGS services); acquisition of PathoQuest expanded NGS capabilities; investing in AI-enabled digital pathology and lab-science expansions (e.g., Scotland bioanalytical lab).
MX:CRL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed