Charles River Laboratories International (NYSE: CRL) reported first-quarter 2026 financial results that reflected a transition period following recent strategic divestitures and executive changes. Total revenue for the quarter was $995.8 million, representing a 1.2% increase year-over-year to Q1 2025. However, this growth masked underlying organic decline; after adjusting for foreign currency translation effects which boosted reported revenue by 2.8%, and excluding a small revenue reduction due to a divestiture, organic revenue fell by 1.5%. This overall contraction was driven primarily by declines in the Research Models and Services (RMS) and Discovery and Safety Assessment (DSA) segments, which were only partially offset by growth in the Manufacturing Solutions segment. GAAP earnings per share showed a loss of $0.30 due to a significant one-time charge of $118 million related to a loss on assets held for sale stemming from the company's divestiture of its CDMO and Cell Solutions businesses. Despite this, management highlighted that excluding these non-recurring items, the business delivered solid operational performance in key areas. Specifically, the Manufacturing segment saw an 6.8% year-over-year revenue increase to $190.5 million, driven by growth in Microbial Solutions, though the loss of the CDMO business within that segment was notable as the company shifts focus. The RMS segment, which accounts for a large portion of the business, reported organic revenue decreases, particularly in North America for both small and large research models, although higher revenue in China provided some relief. On the profitability front, GAAP operating margins improved to 12.0% compared to 7.6% in the prior year quarter, primarily because lower accelerated amortization expenses from the divested CDMO client relationships reduced costs significantly. However, on a non-GAAP basis, which management prefers for evaluating ongoing operations, the operating margin decreased to 16.3% from 19.1%. This decline was attributed to higher direct study-related costs in the DSA segment related to large-model sourcing, an unfavorable revenue mix in the RMS segment, and increased stock-based compensation tied to executive transitions. CEO Birgit Girshick reaffirmed the company's guidance for the full year, citing strong bookings in the first quarter and confidence in the current demand environment, particularly within the DSA sector, while emphasizing a long-term strategy focused on modernizing the portfolio and enhancing client experience. Looking forward, Charles River Laboratories is moving into what leadership describes as its next chapter of growth following the completion of major restructuring activities. The company has repurchased $200 million of its common stock during the first quarter of 2026, demonstrating a commitment to returning capital to shareholders. While immediate earnings per share on a non-GAAP basis decreased by 12.0% year-over-year to $2.06 due to the aforementioned cost pressures and margin compression, management maintains confidence in their trajectory for improving results over the course of the year. The successful execution of the divestiture strategy and the stabilization of organic revenue flows remain central to their long-term value creation plan as they pivot away from legacy CDMO operations toward a more focused scientific services portfolio.