Revenue Growth Remains Modest
Total revenue grew 1.2% year-over-year to $995.8M in Q1 FY2026, up from $984.2M in the prior-year period, suggesting stable but slow top-line momentum in CRL's core business segments.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
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AI Takeaway
CRL posted modest 1.2% revenue growth to $995.8M in Q1 FY2026, but swung to a net loss of $14.8M despite a 60.6% surge in operating income, as heavy investing outflows and financing activity signal significant strategic repositioning.
Revenue
$995.83M
+1.18% YoY
EPS (Diluted)
-$0.30
-160.00% YoY
Operating Income
$119.9M
+60.57% YoY
Source: SEC XBRL
CRL reported Q1 FY2026 revenue of $995.83M, up 1.2% year over year. Operating margin was 12.0%, up 4.4 points from 7.6% a year earlier. Operating cash flow was $41.08M, down 76.1% year over year. CRL's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.02 | 2.76 | Beat +9.2% |
| Mar 2026This filing | 2.06 | 1.96 | Beat +5.0% |
| Dec 2025 | 2.39 | 2.37 | Beat +1.0% |
| Sep 2025 | 2.43 | 2.36 | Beat +2.9% |
Adjusted (non-GAAP) EPS of $2.06 versus the $1.96 analyst consensus — a +5.0% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.30.
Compiled by AI from this SEC filing
Total revenue grew 1.2% year-over-year to $995.8M in Q1 FY2026, up from $984.2M in the prior-year period, suggesting stable but slow top-line momentum in CRL's core business segments.
Source: 10-Q Income Statement
Operating income jumped 60.6% to $119.9M from $74.7M, driven in part by a 10.3% reduction in SG&A expenses (from $177.8M to $159.4M), reflecting meaningful cost-cutting efforts that significantly expanded operating margin from 7.6% to 12.0%.
Source: 10-Q Income Statement
Despite strong operating performance, CRL reported a net loss of $14.8M compared to net income of $25.5M in Q1 FY2025, a swing of approximately $40.3M, likely driven by below-the-line charges such as interest expense, restructuring costs, or other non-operating items not captured in operating income.
Source: 10-Q Income Statement
Investing cash outflows surged to -$407.8M from -$45.5M in the prior year (a nearly 797% increase), suggesting a major acquisition, capital expenditure program, or other strategic investment was executed during Q1 FY2026.
Source: 10-Q Cash Flow Statement
Total liabilities rose 9.2% to $4.74B while stockholders' equity fell 7.9% to $2.94B, pushing the debt-to-equity ratio to 1.61x, indicating increased financial leverage that warrants monitoring given the current net loss environment.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Operating cash flow collapsed 76.1% year-over-year to just $41.1M from $171.7M, while cash and equivalents declined 16.4% to $191.8M. This sharp deterioration in cash generation, combined with heavy investing outflows of $407.8M, raises near-term liquidity concerns if the trend persists.
Source: 10-Q Cash Flow Statement
Total liabilities increased 9.2% to $4.74B while equity contracted 7.9% to $2.94B, resulting in a debt-to-equity ratio of 1.61x. The company funded its investing activities largely through $347.7M in financing inflows, suggesting increased reliance on debt that could pressure future earnings through higher interest costs.
Source: 10-Q Balance Sheet & Cash Flow Statement
CRL reported a net loss of $14.8M in Q1 FY2026 despite a 60.6% improvement in operating income, indicating significant non-operating charges (e.g., interest expense, impairments, or restructuring) that are eroding profitability. The disconnect between operating and net performance creates uncertainty about true earnings power.
Source: 10-Q Income Statement
ROE stands at -0.50% and ROA at -0.19%, both deeply negative, reflecting the net loss against a large asset and equity base of $7.73B and $2.94B respectively. Sustained negative returns could erode investor confidence and limit access to capital markets on favorable terms.
Source: 10-Q Balance Sheet & Income Statement
Depreciation and amortization dropped 44.2% year-over-year to $67.2M from $120.4M, which could reflect asset disposals, impairments already taken, or changes in asset mix. This sharp decline warrants scrutiny as it may signal changes in the company's long-term asset base or accounting estimates.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 995.83 $M | 984.17 $M | +1.18% |
Operating Income $M | 119.90 $M | 74.67 $M | +60.57% |
Net Income $M | -14.84 $M | 25.47 $M | -158.28% |
EPS (Basic) $ | -0.30 $ | 0.50 $ | -160.00% |
EPS (Diluted) $ | -0.30 $ | 0.50 $ | -160.00% |
SG&A Expense $M | 159.42 $M | 177.80 $M | -10.34% |
Answers draw on this SEC filing and the data on this page
CRL swung to a net loss in Q2 FY2026 as a $63.7 million divestiture charge overshadowed a 19.7% increase in operating income, while cost-saving initiatives and a strategic portfolio overhaul lifted margins.
CRL (Charles River Laboratories) reported a sharp deterioration in profitability in FY2025, with operating income collapsing 88.9% to $25.2M and a net loss of $144.3M, even as revenue declined only modestly by 0.9% to $4.0B, while operating cash flow remained resilient at $737.6M.
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