Looking back on drug development inputs & services stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Charles River Laboratories (NYSE: CRL) and its peers.

Companies specializing in drug development inputs and services play a crucial role in the pharmaceutical and biotechnology value chain. Essential support for drug discovery, preclinical testing, and manufacturing means stable demand, as pharmaceutical companies often outsource non-core functions with medium to long-term contracts. However, the business model faces high capital requirements, customer concentration, and vulnerability to shifts in biopharma R&D budgets or regulatory frameworks. Looking ahead, the industry will likely enjoy tailwinds such as increasing investment in biologics, cell and gene therapies, and advancements in precision medicine, which drive demand for sophisticated tools and services. There is a growing trend of outsourcing in drug development for nimbleness and cost efficiency, which benefits the industry. On the flip side, potential headwinds include pricing pressures as efforts to contain healthcare costs are always top of mind. An evolving regulatory backdrop could also slow innovation or client activity.

The 8 drug development inputs & services stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6% since the latest earnings results.

Charles River Laboratories (NYSE: CRL)

Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE: CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.

Charles River Laboratories reported revenues of $995.8 million, up 1.2% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates.

The stock is down 17% since reporting and currently trades at $150.78.

Is now the time to buy Charles River Laboratories? Access our full analysis of the earnings results here, it’s free.

Best Q1: West Pharmaceutical Services (NYSE: WST)

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

West Pharmaceutical Services reported revenues of $844.9 million, up 21% year on year, outperforming analysts’ expectations by 8.4%. The business had a stunning quarter with a beat of analysts’ EPS and revenue estimates.

West Pharmaceutical Services scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $302.50.

Is now the time to buy West Pharmaceutical Services? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Azenta (NASDAQ: AZTA)

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Azenta reported revenues of $144.8 million, up 1% year on year, falling short of analysts’ expectations by 2.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Azenta delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 35.1% since the results and currently trades at $15.98.

Read our full analysis of Azenta’s results here.

IQVIA (NYSE: IQV)

Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.

IQVIA reported revenues of $4.15 billion, up 8.4% year on year. This print topped analysts’ expectations by 1.1%. Taking a step back, it was a satisfactory quarter as it also recorded a narrow beat of analysts’ revenue estimates but full-year EBITDA guidance meeting analysts’ expectations.

The stock is up 5.1% since reporting and currently trades at $169.12.

Read our full, actionable report on IQVIA here, it’s free.

UFP Technologies (NASDAQ: UFPT)

With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.

UFP Technologies reported revenues of $154.2 million, up 4.1% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates.

The stock is up 9.1% since reporting and currently trades at $210.02.

Read our full, actionable report on UFP Technologies here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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