Charles River forecasts 2026 profit above estimates on improving biotech demand

Charles River Laboratories forecast annual profit above Wall Street estimates, betting on an improvement in demand for its drug discovery and development services from biotech clients. The company also said its first-quarter profit will decline in the "high-teens," citing a 40-cent hit related to the timing of non-human primates shipments and stock compensation for the CEO, who retires in May.

Charles River expects adjusted per share profit for 2026 in the range of $10.70 to $11.20, compared with analysts’ average estimate of $10.88. The company posted quarterly adjusted profit per share of $2.39, topping estimates of $2.34.

The company said it is seeing more proposals and fewer cancellations from drugmakers, after U.S. government drug price negotiations weighed on activity. Biotechs are also seeing an uptick in funding since 2025, following a post-pandemic crunch.

The CEO said net bookings in the fourth quarter demonstrated the stabilization of the biopharmaceutical demand environment and that the company is cautiously optimistic that positive demand trends will continue in 2026.

Charles River expects the roughly $510 million acquisition of Cambodia-based K.F. to add 25 cents to per share profit this year and around 60 cents in 2027 as the company secures its supply chain. Shares were down 4%, extending the 22.8% slide this year over concerns that recent artificial intelligence advances could displace the company’s services.