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Charles River Labs divests units to sharpen profitability focus

Story Highlights
  • Charles River will divest its CDMO and Cell Solutions units, trimming manufacturing exposure while exiting sites that generated $143 million of 2025 revenue.
  • The company will sell European discovery assets to IQVIA, sacrificing over $200 million of 2026 revenue but targeting higher margins and EPS accretion.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Charles River Labs divests units to sharpen profitability focus

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Charles River Labs ( (CRL) ) has shared an update.

On February 25, 2026, Charles River Laboratories said it will divest its contract development and manufacturing organization and Cell Solutions businesses to GI Partners, exiting facilities in Tennessee, Maryland, the U.K., and California that generated $143 million in 2025 revenue. These units focus on producing advanced gene and cell therapies and supplying human-derived cellular materials, signaling a strategic shift away from certain manufacturing activities toward higher-margin core operations.

The company also agreed on February 25, 2026 to sell selected European Discovery Services assets to IQVIA for about $145 million in cash plus up to $10 million in additional payments, covering sites in the U.K., Germany, Finland, and the Netherlands that delivered $144 million in 2025 revenue. While the disposals will cut 2026 reported revenue by slightly more than $200 million and weigh on top-line growth, Charles River lifted its 2026 non-GAAP earnings guidance to $10.80–$11.30 per share, expecting at least a 100-basis-point operating margin improvement and underscoring a pivot toward profitability and streamlined discovery capabilities.

The most recent analyst rating on (CRL) stock is a Buy with a $235.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

Spark’s Take on CRL Stock

According to Spark, TipRanks’ AI Analyst, CRL is a Neutral.

Overall score is held back primarily by deteriorating recent profitability and very weak technical momentum (price below all major moving averages with bearish MACD). Offsetting these are durable cash generation and a cautiously improving 2026 setup (modest EPS/margin expansion guidance aided by acquisitions and cost savings), while valuation is not supportive due to negative earnings and no stated dividend yield.

To see Spark’s full report on CRL stock, click here.

More about Charles River Labs

Charles River Laboratories International, Inc. is a contract research organization serving the biopharmaceutical and biotech industries, providing research models, discovery and safety assessment services, and manufacturing solutions that support the development and production of advanced therapies. Its portfolio spans early-stage drug discovery, preclinical testing, and specialized manufacturing capabilities for gene and cell therapies across global sites in North America and Europe.

The company’s Discovery Services segment offers in vitro drug discovery platforms, including medicinal chemistry and structural biology, while also providing pharmacology services in oncology, neuroscience, immunology, and advanced cell biology. Its Manufacturing Solutions and Research Models and Services segments supply tools, materials, and services used in the development, testing, and production of novel therapeutics, positioning Charles River as a key outsourcing partner across the drug development value chain.

Average Trading Volume: 865,212

Technical Sentiment Signal: Strong Sell

Current Market Cap: $8.17B

Find detailed analytics on CRL stock on TipRanks’ Stock Analysis page.

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