Charles River Laboratories International 2025 Q2 Earnings Misses Targets as Net Income Drops 44%

Charles River Laboratories International reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The company raised its 2025 guidance, reflecting stronger-than-expected performance in its Discovery and Safety Assessment (DSA) segment and a favorable foreign exchange impact. Despite this, the firm’s revenue and earnings declined year-over-year, with net income and EPS both falling significantly.

The total revenue of Charles River Laboratories International increased by 0.6% to $1.03 billion in 2025 Q2, up from $1.03 billion in 2024 Q2, with specific segment revenue listed as follow:

Charles River Laboratories International's EPS declined 39.4% to $1.06 in 2025 Q2 from $1.75 in 2024 Q2. Meanwhile, the company's net income declined to $52.69 million in 2025 Q2, down 44.1% from $94.26 million reported in 2024 Q2. The EPS and net income declines indicate a weak earnings performance, raising concerns about profitability and operational efficiency.

The stock price of Charles River Laboratories International has dropped 4.36% during the latest trading day, has tumbled 14.68% during the most recent full trading week, and has edged down 2.32% month-to-date.

The strategy of buying Charles River Laboratories International (CRL) shares after its revenue raise quarter-over-quarter on the financial report released date and holding for 30 days resulted in a -27.12% return. The benchmark return was 49.40%, leading to an excess return of -76.52% and a CAGR of -10.11%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of -0.23, indicating a risky approach with significant volatility, as the volatility was 44.71%.

James C. Foster, Chair, President, and Chief Executive Officer, highlighted that Charles River is observing stabilization in biopharmaceutical demand, with gradual progress toward organic revenue growth, driven by strong performance in the DSA segment. He emphasized the company’s competitive edge through its scientifically distinguished portfolio and leading non-clinical market position. Foster noted that as global biopharma clients complete restructuring and small/mid-sized biotech demand remains stable, Charles River is well-positioned for growth. Despite acknowledging that business improvement may not be linear, he expressed optimism about the DSA segment and overall non-GAAP financial results outperforming expectations, indicating cautious optimism.

Charles River updated its 2025 guidance, raising full-year revenue and non-GAAP EPS forecasts due to better-than-expected Q2 performance, particularly in DSA, and a favorable foreign exchange impact. Current guidance ranges for revenue growth are -2.5% to -0.5% reported and -3.0% to -1.0% organic, with non-GAAP EPS of $9.90 to $10.30. The guidance incorporates adjustments for amortization, restructuring costs, and legal advisory expenses, reflecting the company’s focus on operational efficiency and financial discipline.

Additional News
Charles River Laboratories announced its Second-Quarter 2025 results, reporting revenue of $1.03 billion and GAAP earnings per share of $1.06 alongside non-GAAP earnings per share of $3.12. The company raised its 2025 guidance for revenue and non-GAAP earnings per share, reflecting stronger-than-expected performance in the DSA segment and favorable foreign exchange impact. Notable updates include the closure of the U.S. Department of Justice investigation into the NHP supply chain, the impact of restructuring activities, and the company's ongoing focus on operational efficiency. The firm also highlighted the importance of its leading early-stage development portfolio and the favorable environment for biopharmaceutical demand.