Improved DSA Segment Performance
DSA net book-to-bill improved to 1.04x in the first quarter, the first time above 1x in over 2 years, due to improved bookings and a decline in study cancellations.
Strong Cost Savings and Margin Improvement
Operating margin increased by 60 basis points to 19.1% year-over-year, driven by cost savings from restructuring initiatives, contributing to EPS growth of 3.1%.
Increased Financial Guidance
Due to better-than-expected DSA performance, revenue guidance was raised by 100 basis points to a 2.5% to 4.5% decrease organically, and non-GAAP EPS guidance was increased by $0.20 at midpoint.
Growth in Small and Midsized Biotech Revenue
Revenue for small and midsized biotech clients grew for the second consecutive quarter, indicating resilience despite funding challenges.
Successful Strategic Investments
Continued expansion into NAMs with $200 million annual revenue from NAMs-related services, highlighting Charles River's investment in advanced in vitro toxicology, predictive immunotoxicology assays, and organ-on-a-chip platforms.