Charles River Laboratories (CRL) is trading lower as the market looks ahead to its next earnings report (scheduled for May 6, 2026) with investors still digesting the company’s portfolio reshaping that reset 2026 revenue expectations. The company said the planned divestitures would reduce reported revenue by slightly more than $200 million in 2026, a change that can keep near-term sentiment cautious and amplify downside moves on down days for healthcare services names.

On February 25, 2026, Charles River announced definitive agreements to sell its CDMO and Cell Solutions businesses to GI Partners (primarily for contingent, performance-based payments) and to divest certain European Discovery Services assets to IQVIA for about $145 million in cash plus potential additional payments. Management guided that, assuming both transactions close in Q2 2026, the divestitures are expected to reduce 2026 reported revenue by roughly 3.5% to 5.0% and organic revenue by roughly 0.5% to 1.5%, while improving non-GAAP operating margin and adding about $0.10 to non-GAAP EPS for the partial year.

The next catalyst is the May earnings release, where investors will focus on (1) demand/booking commentary in Discovery and Safety Assessment (DSA), (2) the timing and certainty of Q2 closing for the divestiture transactions, and (3) whether management frames the post-divestiture portfolio as a cleaner, higher-margin setup that can stabilize growth into the back half of 2026. Charles River previously pointed to a return to organic growth in the second half of 2026 as booking activity improves, which makes the upcoming update particularly important for the stock’s near-term direction.