Charles River Laboratories International, Inc. lifted its full-year 2026 earnings forecast after third-quarter results exceeded its earlier outlook, with its Discovery and Safety Assessment (DSA) segment among the drivers of the revision.
The company now expects non-GAAP earnings per share (EPS) of $11.35 to $11.55, compared with $11.15 to $11.45 previously. It also raised its organic revenue growth outlook to at least 1.5%, from a range of 0% to 1%. Charles River cited third-quarter outperformance and a lower tax rate.
Third-quarter non-GAAP EPS was $3.09, up 27.2% from a year earlier. Organic revenue grew 4.7%, above the company's previous outlook of 1% to 3%. Reported revenue fell 2.2% to $982.7 million, primarily because of divestitures.
Charles River calculates organic growth after removing the effects of acquisitions, divestitures and currency translation. The measure and reported revenue show different views of the quarter: organic revenue increased, while total reported revenue declined.
The company also raised its 2026 GAAP EPS outlook to $8.15 to $8.35 from $3.05 to $3.35. It said the change primarily reflects a $245.6 million third-quarter benefit from reversing acquired tax reserves. The reversal followed new tax legislation and the completion of certain tax requirements in a foreign jurisdiction.
For the fourth quarter, Charles River forecasts a sequential non-GAAP operating margin increase of about 150 basis points, or 1.5 percentage points. Seasonal demand for Microbial Solutions and lower Cambodia nonhuman-primate sourcing costs, together with favorable fringe costs, are expected to support the sequential margin increase. It also expects fourth-quarter non-GAAP EPS to grow about 30% to 40% from a year earlier.
