Charles River Laboratories announced Wednesday it expects 2026 profits to exceed Wall Street predictions, citing recovering demand from biotechnology companies for drug research services. The Massachusetts-based contract research firm reported fourth-quarter earnings that beat analyst expectations despite some revenue challenges.
A major contract research company announced Wednesday it anticipates strong profits next year, driven by recovering demand from biotechnology firms seeking drug development assistance.
Charles River Laboratories, headquartered in Wilmington, Massachusetts, projects its adjusted earnings for 2026 will fall between $10.70 and $11.20 per share. The midpoint of this forecast surpasses the average Wall Street prediction of $10.88 per share, based on LSEG data.
The research firm has observed a rise in project proposals from pharmaceutical and biotech companies, while contract cancellations have decreased. Those earlier cancellations stemmed from clients responding to the federal government’s drug pricing negotiation initiative.
CEO James Foster highlighted the positive trend, stating that fourth-quarter “net bookings… demonstrates the stabilization of the biopharmaceutical demand environment.” Foster added that the company remains “cautiously optimistic that positive demand trends will continue in 2026.”
Foster’s retirement was announced last month, with Chief Operating Officer Birgit Girshick set to take over leadership in May.
The company also revealed additional executive changes Wednesday, naming Glenn Coleman as its new finance chief to replace interim CFO Michael Knell. Kerry Dailey will assume the newly established role of chief legal officer.
For the fourth quarter, Charles River reported revenue of $994.2 million, beating analyst projections of $987 million.
Despite the revenue beat, the company noted that quarterly sales were dampened by reduced volume in both drug discovery services and regulated safety assessment services compared to the previous year.
Looking ahead to 2026, Charles River anticipates revenue growth ranging from flat to a 1.5% increase.
The company’s fourth-quarter adjusted earnings per share reached $2.39, surpassing the analyst consensus estimate of $2.34.
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