Charles River beats quarterly estimates on steady demand for drug development services

IQVIA Holdings

07/05/2026 12:51

May 7 (Reuters) - Contract drug developer Charles River Laboratories CRL.N on Thursday beat Wall Street expectations for first-quarter results, helped by improved demand for its drug discovery and development services.

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Charles River's positive results point to a gradual rebound for contract research organizations, as biotech and pharma clients begin to reengage in drug discovery and safety testing after an extended spell of cautious spending.

Biotech firms hire contract research organizations, or CROs, to run parts of clinical trials, such as patient recruitment, data collection and regulatory compliance.

"We are pleased to deliver on our first-quarter financial targets, and remain well positioned to generate improving results over the course of the year," CEO Birgit Girshick said.

On an adjusted basis, Charles River reported profit of $2.06 per share for the quarter ended March 28, compared with analysts' average estimate of $1.94 per share, according to data compiled by LSEG.

Quarterly revenue came in at $995.8 million, surpassing analysts' average estimate of $977.5 million.

Revenue at its discovery and safety assessment segment rose 0.7% to $596.9 million in the first quarter.

The company reaffirmed its full-year adjusted profit forecast of $10.80 to $11.30 per share.

Earlier this week, its peer IQVIA Holdings IQV.N also reported better-than-expected quarterly results, buoyed by strong demand for its clinical research and technology services used by pharmaceutical clients.

 (Reporting by Kamal Choudhury in Bengaluru; Editing by Diti Pujara)

 ((Kamal.Choudhury@thomsonreuters.com;))