WILMINGTON, Mass. — Charles River Laboratories International, Inc. reported first-quarter revenue of $995.8 million, up 1.2% from $984.2 million in the same period last year, while reaffirming its 2026 organic revenue and non-GAAP earnings guidance.
The Wilmington-based contract research company reported a GAAP net loss available to common shareholders of $14.8 million, or 30 cents per diluted share, compared with GAAP net income of $25.5 million, or 50 cents per diluted share, in the first quarter of 2025. The loss was mainly tied to a $118 million loss on assets held for sale related to the divestiture of its CDMO and Cell Solutions businesses.
On a non-GAAP basis, Charles River reported net income of $101.7 million, down 14.6% from $119.1 million a year earlier. Non-GAAP earnings per diluted share were $2.06, compared with $2.34 in the first quarter of 2025.
“We are pleased to deliver on our first-quarter financial targets, and remain well positioned to generate improving results over the course of the year. Our confidence is supported by a DSA demand environment that is tracking to our expectations, resulting in solid bookings in the first quarter, as well as the successful execution of our strategy,” said Birgit Girshick, chief executive officer.
“As we look to the future, our focus remains on enhancing our clients’ experience, strengthening our world-class scientific portfolio, achieving our financial and operational goals, and increasing long-term shareholder value. We have already established a solid foundation and with a refreshed strategic focus aimed at modernizing the Company and the industry, we intend to continue to evolve and lead the way. By doing so, we will enable the Company to realize its full potential and ensure future success. I am energized to lead this great company into its next chapter of growth and am confident in the path we are taking to create the future for Charles River,” Girshick said.
Charles River said revenue declined 1.5% on an organic basis, excluding foreign currency translation and divestiture effects. Growth in the Manufacturing Solutions segment was offset by organic revenue declines in its Research Models and Services and Discovery and Safety Assessment segments.
The Research Models and Services segment generated $208.4 million in revenue, down 2.2% from $213.1 million a year earlier. Organic revenue declined 5.5%, primarily due to lower revenue from small research models in North America and large research models, partially offset by higher revenue from small research models in China.
Discovery and Safety Assessment revenue rose 0.7% to $596.9 million from $592.6 million. Organic revenue declined 1.4%, driven mainly by lower discovery services revenue, including the impact of prior site consolidation activities.
Manufacturing Solutions revenue increased 6.8% to $190.5 million from $178.5 million. Organic revenue rose 2.9%, driven by higher revenue in the Microbial Solutions business, partially offset by lower revenue in the CDMO business.
Charles River completed the previously announced divestiture of its CDMO and Cell Solutions businesses to GI Partners on May 6. The company also expects to complete the sale of certain European Discovery Services sites in May. Charles River said the transactions are intended to refocus its portfolio on core scientific areas, including regulated drug development testing.
The company also repurchased 1.1 million shares for $200 million during the first quarter. As of March 28, Charles River had $800 million remaining under its $1 billion stock repurchase authorization approved by its board in October 2025.
Charles River reaffirmed its 2026 organic revenue guidance of a decline of 1.5% to 0.5% and non-GAAP earnings per share guidance of $10.80 to $11.30. The company lowered its reported revenue outlook by about 50 basis points to reflect updated foreign exchange assumptions and now expects reported revenue to decline 5.5% to 4.0%.
