$CRL · CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Charles River Laboratories filed its Q3 FY2026 10-Q (quarter ended September 26, 2026). Total revenue declined 2.2% YoY to $982.7M, with service revenue down to $780.3M and product revenue up to $202.4M. Net income attributable to common shareholders surged to $333.1M from $54.4M a year ago, driven largely by a $163.8M income tax benefit (including a $245.6M reversal of an unrecognized tax benefit reserve). Diluted EPS was $6.86 versus $1.10 a year earlier. Operating income rose to $202.6M from $133.8M.
- Revenue fell 2.2% YoY to $982.7M in Q3 FY2026.
- Net income attributable to common shareholders rose to $333.1M from $54.4M.
- A $163.8M income tax benefit, including a $245.6M tax reserve reversal, drove the profit surge.
- Operating income climbed to $202.6M from $133.8M a year earlier.
- Nine-month restructuring costs totaled $73.8M, flat versus $73.3M a year ago.
Shares traded down 1.28% to $347.35 in the regular session, roughly matching the pre-market level at filing, suggesting the tax-driven earnings beat did not excite investors given the revenue decline.
The headline profit surge is tax-accounting driven, masking a core revenue decline that investors should weigh carefully.
The 2.2% revenue decline reflects continued soft demand in the CRO/preclinical services space, though margin expansion across DSA and Manufacturing segments signals cost discipline.
Revenue contraction across DSA, Manufacturing, and RMS segments points to persistent client demand weakness. The company also carries $2.44B in long-term debt and faces ongoing litigation including a securities class action and derivative suits.