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.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Charles River's Q2 FY2026 results were defined by a significant portfolio reshaping, as divestitures of CDMO and Cell Solutions led to a net loss despite higher operating margins. The company's DSA backlog inched up to $2.0 billion, signaling a cautiously improving demand environment, while management continued to progress toward its $300 million cumulative cost-savings target. Operating income expanded on lower amortization and a $38.5 million gain from the Wilmington site sale, but unallocated corporate costs jumped 50.9% due to acquisition and divestiture-related spending. The tension lies between the near-term earnings drag from restructuring and the longer-term benefits of a more focused, higher-margin business mix.
Revenue
$1B
-2.72% YoY
EPS (Diluted)
-$0.03
-102.83% YoY
Operating Income
$119.89M
+19.73% YoY
Source: SEC XBRL
CRL reported Q2 FY2026 revenue of $1B, down 2.7% year over year. Operating margin was 11.9%, up 2.2 points from 9.7% a year earlier. CRL's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 3.02 | 2.76 | Beat +9.4% |
| Mar 2026 | 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 $3.02 versus the $2.76 analyst consensus — a +9.4% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.03.
3 reported segments · SEC XBRL
Segment revenue totals $1B, which is the $1B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure CRL itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Charles River expects to achieve $300 million in cumulative annualized cost savings by the end of 2026, with over $175 million already benefiting fiscal 2025, driven by workforce optimization, site consolidation, and procurement efficiencies.
Source: 10-Q Item 2 MD&A
The Discovery and Safety Assessment (DSA) segment backlog rose to $2.0 billion as of June 27, 2026 from $1.9 billion at December 27, 2025, indicating a modest recovery in client spending.
Source: 10-Q Item 2 MD&A
The sale-leaseback of assets at the Wilmington, Massachusetts site generated a pre-tax gain of $38.5 million, with $23.2 million allocated to the RMS segment and $15.3 million to unallocated corporate.
Source: 10-Q Item 2 MD&A
Restructuring charges reached $23.1 million in Q2 FY2026, while the CDMO and Cell Solutions divestiture resulted in a $63.7 million loss for the quarter, partially offset by a $0.3 million gain from the European Discovery sale.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 2 high, 2 medium, 1 low
Debt-to-equity ratio rose to 1.64x as equity declined from losses and share repurchases, while quarterly interest expense remained high at $30.3 million, limiting financial flexibility.
Source: 10-Q Item 1A
The recent acquisition of a Cambodian NHP supplier creates heavy reliance on a single source for non-human primates, which are critical to DSA operations and subject to ongoing U.S. government investigations.
Source: 10-Q Item 1A
The acquisitions of the Cambodian NHP Supplier ($507M) and PathoQuest ($67.6M) require successful integration and may not deliver expected synergies, while adding operational complexity.
Source: 10-Q Item 1A
The CDMO and Cell Solutions divestiture includes up to $45 million in potential future funding obligations and contingent payments, which could reduce net proceeds and create financial uncertainty.
Source: 10-Q Item 1A
With $177.6 million in cash held by non-U.S. entities and significant international revenue, currency fluctuations could adversely impact reported results, particularly given the recent strengthening of the U.S. dollar.
Source: 10-Q Item 1A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.00 $B | 1.03 $B | -2.72% |
Operating Income $M | 119.89 $M | 100.13 $M | +19.73% |
Net Income $M | -1.48 $M | 52.33 $M | -102.83% |
EPS (Basic) $ | -0.03 $ | 1.06 $ | -102.83% |
EPS (Diluted) $ | -0.03 $ | 1.06 $ | -102.83% |
SG&A Expense $M | 228.90 $M | 191.55 $M | +19.50% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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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