CRAI Stock Rises 12.4% in Three Months: Here's What You Should Know

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CRAI Stock Rises 12.4% in Three Months: Here's What You Should Know

Charles River Associates CRAI stock has gained 12.4% over the past three months, outperforming the industry’s 7% growth and the Zacks S&P 500 Composite's 1.7% return.

CRAI’s Three-Month Share Price Performance

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Let us delve deeper into the factors that have contributed to the company’s outperformance.

CRAI’s Broad-Based Demand Across Practices & Geographies

Charles River is benefiting from broad-based demand across its portfolio. In the second quarter of fiscal 2026, revenues from Legal & Regulatory services increased 10.1% year over year, while Management Consulting services grew 25.5%. Energy, Finance, Forensic Services, Intellectual Property, Life Sciences and Risk, Investigations & Analytics each posted double-digit revenue growth. The Antitrust & Competition Economics practice delivered its sixth consecutive record quarter. Geographically, North American revenues rose 8.7%, while international operations advanced 32.9%. This diversified growth profile enhances business resilience by limiting reliance on any single practice or market. Sustained momentum across service lines and geographies also provides a favorable foundation for continued revenue expansion.

Operating Results & Raised Revenue Outlook Promise Growth

CRAI’s operating income increased 19.3% year over year in the second quarter of fiscal 2026 to $23.5 million, while operating margin expanded to 11.2% from 10.6%. Adjusted EBITDA rose 15.3% to $26.8 million, with margin improving to 12.7% from 12.4%, while adjusted net income increased 9% to $13.9 million. Depreciation and amortization declined to $3.3 million or 1.6% of revenues, from 1.9% a year earlier. The combination of revenue growth and margin expansion points to improving operating leverage. CRAI also raised its fiscal 2026 constant-currency revenue outlook to $805-$820 million from $785-$805 million. The higher guidance, supported by a healthy project pipeline, reinforces a favorable near-term earnings and revenue trajectory.

CRAI’s Consistent Capital Returns Benefit Shareholders

Charles River continues to return capital through dividends and share repurchases. Dividend payments increased from $9.6 million in fiscal 2022 to $13.8 million in fiscal 2025, while repurchases rose from $27.6 million to $47.1 million. In the first half of fiscal 2026, CRAI repurchased 309,000 shares for $49.3 million at an average price of $160 per share and paid $7.4 million in dividends and dividend equivalents.

In the second quarter, the company returned $31.4 million to shareholders, including $27.8 million in repurchases and $3.6 million in dividends. The board declared a quarterly dividend of $0.57 per share in August 2026. Management’s long-term framework targets returning about 50% of adjusted operating cash flow to shareholders, supporting recurring shareholder income and potential per-share value creation.

CRAI’s Zacks Rank & Stocks to Consider

Charles River currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocks in the broader Business Services sector are CBIZ, Inc. CBZ and EVERTEC, Inc. EVTC.

CBIZ carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 10%.

CBZ beat earnings estimates in three of the trailing four quarters and missed once, delivering an earnings surprise of 8.9%, on average.

EVERTEC also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 10%.

EVTC beat earnings estimates in three of the trailing four quarters and missed once, with an average earnings surprise of 3.8%.

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Charles River Associates (CRAI): Free Stock Analysis Report
 
CBIZ, Inc. (CBZ): Free Stock Analysis Report
 
Evertec, Inc. (EVTC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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