Charles River Laboratories International, Inc. (CRL Quick QuoteCRL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 4, before market open.

In the last reported quarter, the company’s adjusted earnings per share (EPS) of $3.02 surpassed the Zacks Consensus Estimate by 11.03%. Charles River beat estimates in the trailing four quarters, delivering an average earnings surprise of 5.86%.

Q3 Estimates for CRL

The Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $956.8 million, suggesting a 4.8% decline from the year-ago reported figure.

The Zacks Consensus Estimate for EPS indicates 22.6% year-over-year growth to $2.98. The estimate has increased 1 cent in the past 30 days.

Let us briefly review the company’s performance leading up to the announcement.

Trends Likely to Shape CRL’s Q3 Results

Research Models and Services (“RMS”)

The segment may have continued to be under pressure, following an organic revenue decline in the prior quarter. Lower revenues from small models in North America and research model services, including Genetically Engineered Models & Services, are expected to have weighed on performance.

For 2026, Charles River had reaffirmed its expectations for low- to mid-single-digit organic revenue decline in RMS amid subdued demand from academic and government clients due to flat NIH budgets and slower grant processing.

Charles River Laboratories International, Inc. Price and EPS Surprise

Charles River Laboratories International, Inc. price-eps-surprise | Charles River Laboratories International, Inc. Quote

Charles River divested its Cell Solutions business, which supplied controlled, consistent, customized primary cells and blood components derived from normal and mobilized peripheral blood and bone marrow, as well as cells from disease state donors to GI Partners, in May. This is also expected to have negatively impacted the segment’s top line in the third quarter of 2026.

However, continued demand for research models in China from mid-tier biotech and Contract Research Organization clients likely helped offset the majority of the RMS decline in the third quarter of 2026. A more normalized non-human primate shipment timing may have also helped revenue performance improve sequentially.

Our model estimates that Charles River’s RMS business revenues will decrease 3.5% in the third quarter of 2026.

Discovery and Safety Assessment (“DSA”)

Charles River likely continued to see an improving biopharmaceutical demand environment within this segment. In the prior quarter, DSA net book-to-bill rose to 1.2X, its third straight quarter of being above 1X and the company’s highest level achieved in nearly four years.

Revenues from small and mid-sized biotech clients were essentially flat organically, an improvement from declines in recent quarters. Management highlighted that there is a natural lag of several quarters between when studies are booked and when the related work contributes to revenues. The improvement in booking activity seen through the middle of 2026 may have begun driving incremental organic revenue growth in DSA in the third quarter.

Most of global biopharma clients have progressed through restructuring and pipeline reprioritization activities over the last several years. Demand has improved gradually over the past 18 months, with further signs of progress this year. Revenues from global biopharma clients continued to increase organically in the second quarter, a trend that is likely to have continued in the third quarter.

In May 2026, Charles River sold certain European Discovery Services businesses to IQVIA Inc. for a preliminary purchase price of $125.2 million in cash, net of costs to sell and subject to certain customary closing adjustments. The company may also receive up to $10 million in contingent payments tied to future performance. Nonetheless, the development may have impacted the segment’s overall growth rate.

Per our model estimate, DSA revenues are expected to decline 5.6% year over year.

Manufacturing Solutions

Within this segment, Charles River may have benefited from continued strength in Microbial Solutions, supported by demand for endotoxin testing reagents, including PTS rapid testing cartridges, across its three major geographic regions. Client additions to its broad quality control testing platform may have also supported performance.

Biologics Testing likely gained momentum as the company moved past a client-specific challenge that had weighed on performance since mid-2025.

Several recent developments are expected to have positively impacted the results in the third quarter. Charles River’s Endosafe Cartridge Technology Automated Manufacturing Suite became fully operational in July 2026, marking a major advancement in bacterial endotoxin testing cartridge production. The implementation is set to expand in-process inspection and digital traceability, strengthen manufacturing controls and increase production capacity.

The company also partnered with Medigen Vaccine Biologics Corp. (“MVC”), under which it will use its advanced analytical platforms, including next-generation sequencing (“NGS”), to support key Chemistry, Manufacturing and Controls activities for MVC’s next-generation multi-valent enterovirus vaccine. Under another collaboration, Charles River agreed to provide Good Manufacturing Practice NGS services to Arovella Therapeutics Ltd. for cell characterization.

Meanwhile, the sale of its contract development and manufacturing products and services business, completed in May 2026, is expected to weigh on Manufacturing Solutions revenues in the third quarter.

Our model estimates Manufacturing Solutions revenues to decrease 5.7% year over year.

Earnings Whispers for CRL Stock

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is not the case here:

Earnings ESP: Charles River has an Earnings ESP of -0.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Charles River currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

Top MedTech Picks

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:

Phibro Animal Health (PAHC Quick QuotePAHC - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #2 at present. The company is slated to release first-quarter fiscal 2027 results on Nov. 4.

PAHC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s reported figure.

Becton, Dickinson and Company (BDX Quick QuoteBDX - Free Report) , or BD, has an Earnings ESP of +0.21% and a Zacks Rank #2 at present. The company is set to release fourth-quarter fiscal 2026 results on Nov. 5.

BD’s earnings surpassed estimates in the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s reported figure.

IDEXX Laboratories (IDXX Quick QuoteIDXX - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2 at present. The company is slated to release third-quarter 2026 results on Nov. 2.

IDXX’s earnings beat estimates in the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for third-quarter EPS implies a jump of 9.1% from the year-ago quarter’s reported figure.