Charles River Laboratories (CRL) reported net income of $333.1 million in the third quarter of 2026, compared with $54.4 million in the same period of 2025. Earnings per share (EPS) were $6.86, versus $1.10 a year earlier. The result includes a benefit of $245.6 million ($5.06 per share) from the reversal of tax provisions of acquired companies, following the approval of new tax legislation and the satisfaction of tax requirements in a foreign jurisdiction.
Revenue totaled $982.7 million, down 2.2% from $1.0 billion in 3Q25 ($1,004.9 million), mainly due to the effect of business divestitures in May 2026. On an organic basis (excluding acquisitions, business divestitures and foreign exchange), revenue grew 4.7%. The GAAP operating margin was 20.6%, versus 13.3% in 3Q25.
Adjusted net income (non-GAAP, which excludes items the company considers non-recurring) was $150.1 million, up 24.8%. Adjusted earnings per share were $3.09, up 27.2%, and the adjusted operating margin rose 330 basis points to 23.0%, driven by the effect of the sale of the CDMO business and higher volume of safety assessment services.
By segment, revenue from Discovery and Safety Assessment was $596.3 million (organic +5.9%), Manufacturing Solutions was $178.9 million (organic +7.4%), and Research Models and Services was $207.5 million (organic -0.6%).
The company raised its 2026 guidance, citing better-than-expected performance in 3Q and a lower tax rate. Estimated GAAP earnings per share are now between $8.15 and $8.35 (previously, $3.05 to $3.35). Projected adjusted earnings per share are $11.35 to $11.55 (previously, $11.15 to $11.45). Organic revenue is expected to grow at least 1.5%, versus 0.0% to 1.0% in the previous guidance.
