Charles River Labs outlines 2026 outlook and acquisitions

The latest announcement is out from Charles River Labs ( (CRL) ).

At the J.P. Morgan Conference, Charles River Laboratories reported that demand in its Discovery and Safety Assessment (DSA) segment strengthened in the second half of 2025, driven mainly by small and mid-sized biotech clients, producing a preliminary net book-to-bill ratio of about 1.1x in the fourth quarter of 2025 and improved global biopharma bookings. For 2026, the company indicated that organic revenue growth at the top end of its guidance is expected to be at least flat for both the consolidated business and the DSA segment, with a return to revenue growth anticipated in the second half of the year, aided by favorable DSA demand indicators and FX tailwinds, though Manufacturing gains are expected to be offset by headwinds in RMS. Charles River also highlighted plans for more than $100 million in incremental cost savings in 2026 to mitigate inflation until revenue growth strengthens, and noted that its outlook does not yet factor in the impact of two planned acquisitions, which are expected to be accretive to margins once completed. The company announced an agreement to acquire the assets of K.F. (Cambodia) Ltd., a Cambodia-based supplier of non-human primates for regulated biomedical and pharmaceutical research, for approximately $510 million, with closing expected early in the first quarter of 2026, integrating the business into its DSA operations and projecting accretion to non-GAAP EPS in 2026 and 2027. It also exercised an option to acquire the remaining 79% of PathoQuest SAS, a Paris-based provider of next-generation sequencing solutions for biopharmaceutical manufacturing quality-control testing, for about €51.6 million, with closing targeted by the end of the first quarter of 2026; PathoQuest is expected to contribute modest revenue in 2026 and will be integrated into Charles River’s Biologics Testing unit within Manufacturing Solutions, supporting the company’s positioning in advanced testing services.

The most recent analyst rating on (CRL) stock is a Buy with a $260.00 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.

The score is held back primarily by weak financial performance (declining revenue and negative net margin) and unfavorable valuation metrics (negative P/E with no dividend yield provided). These are partially offset by strong technical uptrend signals and a mixed-but-constructive earnings call that emphasized cost savings, portfolio actions, and a large buyback alongside modestly declining revenue guidance.

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

More about Charles River Labs

Charles River Laboratories is a global provider of drug discovery, non-clinical development, and manufacturing support services to the biopharmaceutical and biotechnology industries, with key business segments including Discovery and Safety Assessment (DSA), Research Models and Services (RMS), and Manufacturing Solutions, such as biologics testing.

Average Trading Volume: 914,728

Technical Sentiment Signal: Buy

Current Market Cap: $10.87B

For an in-depth examination of CRL stock, go to TipRanks’ Overview page.