CRL's core business continues to shrink organically (-1.5%) with accelerating margin compression. The CDMO divestiture removes a drag but also reduces revenue scale. Watch for Q2 DSA bookings data as a leading indicator of demand recovery — management expects return to organic growth in H2 2026. The $800M buyback authorization provides a floor but does not offset declining fundamentals.
Price Chart
Executive Summary
CRL reported Q1 2026 non-GAAP EPS of $2.06, a 12.0% YoY decline from $2.34, and revenue of $995.8M (+1.2% reported, -1.5% organic). The company reaffirmed its 2026 organic revenue and non-GAAP EPS guidance but lowered reported revenue guidance by ~50bps on FX. Non-GAAP operating margin contracted to 16.3% from 19.1% due to higher direct costs and unfavorable mix. The CDMO/Cell Solutions divestiture closed on May 6, and the company repurchased $200M in stock during the quarter.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $995.8M, +1.2% reported, -1.5% organic YoY
- Non-GAAP EPS $2.06, -12.0% YoY from $2.34
- Non-GAAP operating margin 16.3%, down from 19.1% YoY
- GAAP net loss $(14.8)M or $(0.30)/share, vs net income $25.5M a year ago
- Reaffirmed 2026 organic revenue guidance (-1.5% to -0.5%) and non-GAAP EPS ($10.80-$11.30)
- Lowered 2026 reported revenue guidance by ~50bps to (5.5%)-(4.0%) on FX
- Completed CDMO and Cell Solutions divestiture to GI Partners on May 6
- Repurchased 1.1M shares for $200M in Q1; $800M remaining on authorization
- DSA segment organic revenue -1.4%, RMS -5.5%, Manufacturing +2.9%
- Operating cash flow $41.1M, down from $171.7M in Q1 2025
Financial Impact
Non-GAAP EPS declined 12% YoY; operating margin compressed 280bps; organic revenue declined for third consecutive quarter
Risk Factors
- Organic revenue decline persisting into H2 2026, delaying expected inflection
- Further margin compression from unfavorable RMS mix and DSA study costs
- Higher leverage post-divestiture (debt increased $527M QoQ to $2.66B)
- FX headwinds reducing reported revenue and EPS
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001100682-26-000036 |
| Document: crl-20260507.htm | 0001100682-26-000036 |
| Document: 0001100682-26-000036-index-headers.html | 0001100682-26-000036 |
| Document: 0001100682-26-000036-index.html | 0001100682-26-000036 |
| Document: 0001100682-26-000036.txt | 0001100682-26-000036 |
| 8-K Data (Synthetic) | 0001100682-26-000036 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | Insider Cluster | $296.41 $294.44 | ▼ −0.66% | ▼ −0.16% | $290.19 (−2.10%) |
Aug 20, 2026 6w ago | Insider Cluster | $291.45 $278.06 | ▼ −4.59% | ▼ −4.59% | $290.19 (−0.43%) |
Aug 13, 2026 7w ago | Insider Cluster | $281.27 $278.26 | ▼ −1.07% | ▲ +0.68% | $290.19 (+3.17%) |
Aug 11, 2026 7w ago | Insider Cluster | $282.00 $278.35 | ▼ −1.29% | ▼ −0.24% | $290.19 (+2.90%) |
Aug 10, 2026 7w ago | Insider Cluster | $282.00 $278.35 | ▼ −1.29% | ▼ −0.24% | $290.19 (+2.90%) |
Aug 5, 2026 8w ago | 8-K | $260.72 $291.76 | ▲ +11.91% | ▲ +12.51% | $290.19 (+11.30%) |
May 7, 2026 21w ago | 8-K | $180.78 $179.87 | ▲ +0.51% | ▲ +3.64% | $290.19 (−60.52%) |
Feb 25, 2026 31w ago | 8-K | $167.50 $164.89 | ▼ −1.56% | ▲ +3.68% | $290.19 (+73.24%) |
US Market Status
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