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LANSING, Mich.--(BUSINESS WIRE)--Neogen® Corporation (NASDAQ: NEOG) will issue its fourth-quarter earnings release before the opening of the market on Thursday, July 30, 2026. Executives from the company will host a webcast and conference call later that morning, beginning at 8:00 a.m. Eastern time. During the call, Neogen management will provide a financial overview and business update of the company's performance for the fourth-quarter of fiscal year 2026. The conference call can be accessed.

Key Takeaways Neogen is advancing growth with new product launches and more diagnostics planned for fiscal 2026. NEOG continues integrating the former 3M Food Safety business to expand reach and offerings. Neogen ended Q3 fiscal 2026 with $793M debt, while competition remains a key challenge. Neogen Corporation (NEOG - Free Report) is well poised to gain in the coming quarters, thanks to its continued product development efforts that enhance its existing offerings and advance its business strategy. The integration of the former 3M Food Safety business is also very promising. An unfavorable solvency position and competitive pressure remain concerns for Neogen’s operations.

The Zacks Rank #3 (Hold) stock has gained 88.5% in the past year, outperforming the industry’s 30.9% decline as well as the S&P 500 composite’s 24.4% gain.

The renowned food and animal safety product provider has a market capitalization of $1.31 billion. Neogen’s earnings yield of 3.2% is on par with the industry’s yield. The company beat on earnings in two of the trailing four quarters and missed in two, delivering an average surprise of 27.6%. 

Let’s delve deeper.

Tailwinds for NEOG StockProduct Launches: Neogen’s product development efforts focus on bringing new products to market that advance its business strategy and enhance its existing offerings. In October 2025, the company introduced Neogen MPNTray, a new extension of its Colitag Water Testing System, designed for water testing laboratories and municipalities. Other key launches include the Listeria Right Now molecular detection assay, Igenity BCHF and MDA2 Quantitative Salmonella (MDA2QSAL96).

Neogen has ongoing development projects for several new and improved diagnostic tests and other complementary products for both the Food Safety and Animal Safety markets, many of which are expected to be commercially available at various times during fiscal 2026.

3M Integration Synergy Impressive: Neogen’s 2022 merger with 3M’s Food Safety business is expected to generate significant long-term value for shareholders of the combined company. The former 3M business had built a broad global presence, with products used in more than 60 countries and a diversified revenue base of more than 100,000 end-user customers. 

The combined company now has an enhanced geographic footprint and product offerings, digitization capabilities, and financial flexibility to capitalize on robust growth trends in sustainability, food safety and supply-chain integrity. 

The transaction also added 3M’s flagship indicator testing brand, Petrifilm, which is now part of Neogen Culture Media. Neogen has made significant progress in integrating the former 3M Food Safety business, navigating through a complex process amid execution and macroeconomic challenges. 

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What Concerns Neogen?Weak Solvency: Neogen exited the third quarter of fiscal 2026 with cash and cash equivalents of $159.9 million and a significantly high total outstanding debt of $793 million. Debt to capital ratio was 27.4%, which remained unchanged from the prior-quarter levels.

Competitive Landscape Tough: Neogen faces intense competition from companies ranging from small businesses to divisions of large multinational companies. Some of these organizations have substantially greater financial resources than the company. Historically, Neogen has faced intense competition from competitors developing new technologies, which could adversely impact the marketability and profitability of its products.

NEOG Stock Estimate TrendIn the past 30 days, the Zacks Consensus Estimate for Neogen’s earnings for fiscal 2026 has remained constant at 29 cents.

The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $857.1 million, which indicates a 4.2% year-over-year decline.

Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Integra LifeSciences (IART - Free Report) and Phibro Animal Health (PAHC - Free Report) . 

Globus Medical has an earnings yield of 5.5%, well ahead of the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.3%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline over the past year.

GMED carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Integra LifeSciences, carrying a Zacks Rank #2 at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.

Neogen (NASDAQ: NEOG - Get Free Report) and Sunny Optical Technology (Group) (OTCMKTS:SNPTF - Get Free Report) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations. Profitability This table compares Neogen and Sunny

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LANSING, Mich.--(BUSINESS WIRE)--Neogen® Corporation (NASDAQ: NEOG) will issue its third-quarter earnings release before the opening of the market on Thursday, April 9, 2026. Executives from the company will host a webcast and conference call later that morning, beginning at 8:00 a.m. Eastern time. During the call, Neogen management will provide a financial overview and business update of the company’s performance for the third-quarter of fiscal year 2026.

The conference call can be accessed by dialing:
Toll-Free - North America: 1-800-549-8228
International: (+1) 646-564-2877
Conference ID: 70064#

The live webcast can be accessed through Neogen’s Investor Relations webpage, neogen.com/investor-relations, under the “Events & Presentations” subheading.

A replay of the conference call and webcast will be available shortly following the conclusion of the call and can be accessed by dialing:
Toll-Free - North America: (1) 888-660-6264
International: (+1) 646-517-3975
Passcode: 70064 #

It will also be available on Neogen’s Investor Relations website at neogen.com/investor-relations.

About Neogen

Neogen Corporation is committed to fueling a brighter future for global food security through the advancement of human and animal well-being. Harnessing the power of science and technology, Neogen has developed comprehensive solutions spanning the Food Safety, Livestock, and Pet Health & Wellness markets. A world leader in these fields, Neogen has a presence in over 140 countries with a dedicated network of scientists and technical experts focused on delivering optimized products and technology for its customers.

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In its upcoming report, Neogen (NEOG - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.04 per share, reflecting a decline of 60% compared to the same period last year. Revenues are forecasted to be $204.46 million, representing a year-over-year decrease of 7.5%.

The consensus EPS estimate for the quarter has undergone a downward revision of 8.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

With that in mind, let's delve into the average projections of some Neogen metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts predict that the 'Revenues- Animal Safety' will reach $56.02 million. The estimate indicates a change of -17.9% from the prior-year quarter.

It is projected by analysts that the 'Revenues- Food Safety' will reach $148.11 million. The estimate indicates a change of -3% from the prior-year quarter.

According to the collective judgment of analysts, 'Revenues- Food Safety- Indicator Testing, Culture Media & Other' should come in at $81.18 million. The estimate points to a change of +4.4% from the year-ago quarter.

Analysts' assessment points toward 'Revenues- Animal Safety- Veterinary Instruments & Disposables' reaching $15.38 million. The estimate indicates a year-over-year change of -0.2%.

Analysts expect 'Revenues- Animal Safety- Animal Care & Other' to come in at $9.61 million. The estimate suggests a change of -8.5% year over year.

The combined assessment of analysts suggests that 'Revenues- Food Safety- Natural Toxins & Allergens' will likely reach $17.65 million. The estimate indicates a year-over-year change of +0.3%.

The average prediction of analysts places 'Revenues- Animal Safety- Genomics Services' at $3.34 million. The estimate suggests a change of -80.4% year over year.

The consensus among analysts is that 'Revenues- Food Safety- Genomics Services' will reach $11.34 million. The estimate suggests a change of +99% year over year.

The consensus estimate for 'Revenues- Food Safety- Biosecurity Products' stands at $4.29 million. The estimate points to a change of -63.7% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenues- Food Safety- Bacterial & General Sanitation' should arrive at $40.39 million. The estimate indicates a change of +1.3% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenues- Animal Safety- Biosecurity Products' of $18.96 million. The estimate indicates a change of -20.4% from the prior-year quarter.

View all Key Company Metrics for Neogen here>>>

Shares of Neogen have demonstrated returns of -12% over the past month compared to the Zacks S&P 500 composite's -4.2% change. With a Zacks Rank #4 (Sell), NEOG is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Neogen Corporation (NASDAQ:NEOG) will release earnings for its third quarter before the opening bell on Thursday, April 9.

Analysts expect the Lansing, Michigan-based company to report quarterly earnings of 5 cents per share, down from 10 cents per share in the year-ago period. The consensus estimate for Neogen's quarterly revenue is $204.62 million (it reported $220.98 million last year), according to Benzinga Pro.

On March 2, Neogen announced the sale of Genomics business to Zoetis.

Neogen shares rose 1.6% to close at $9.56 on Monday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.

Considering buying NEOG stock? Here’s what analysts think:

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LANSING, Mich.--(BUSINESS WIRE)--Neogen® Corporation (NASDAQ: NEOG), an innovative leader in food safety solutions, announced its financial results for the fiscal third quarter of 2026 and provided updated full fiscal year 2026 financial guidance.

“We continued to make significant progress on our strategic transformation in the third quarter as we look to stabilize and strengthen our core business. We are emboldened by the continued strength in core growth in our Food Safety segment. Combined with our major strategic sales initiatives such as our go-to-market strategy review, our increasing use of metric-based key performance indicators, and our transition to a standardized global solutions based selling approach, we believe we are well positioned for continued fundamental improvement across the organization,” said Mike Nassif, Neogen’s Chief Executive Officer and President.

He continued, “In the third quarter our Animal Safety business suffered several third-party, supply-based, setbacks leading to lower-than-anticipated growth, and we are actively engaged in improving these production-related challenges through our supplier qualification and sales and operations planning process. Despite these transient issues, we were able to deliver strong adjusted EBITDA through solid cost control and we continue to see opportunities to drive efficiency through technology and process across the company. We are confident that we will emerge from this fiscal year stronger and more capable as an organization, and increasingly focused on building upon our market leading position in Food Safety through discipline, improved enterprise capabilities, a renewed focus on innovation leadership, and a dramatically improved selling process.”

Financial Highlights

Revenue by Products and Geography

      Three months ended
February 28,

Nine months ended
February 28,

  2026

2025

Change %

2026

2025

Change % 

Food Safety

  Natural Toxins & Allergens

$

17.9

$

17.6

1.7

%

$

58.3

$

58.5

(0.3

)%

Bacterial & General Sanitation

42.1

39.9

5.5

%

128.7

122.3

5.2

%

Indicator Testing & Culture Media

83.0

74.8

11.0

%

245.9

232.9

5.6

%

Biosecurity Products

3.9

11.8

(66.9

)%

14.3

35.7

(59.9

)%

Genomics Services

6.2

5.7

8.8

%

18.0

17.1

5.3

%

Other

3.6

3.0

20.0

%

9.1

9.8

(7.1

)%

Total Food Safety Revenue

$

156.7

$

152.8

2.6

%

$

474.3

$

476.3

(0.4

)%

Animal Safety

  Life Sciences

$

1.5

$

1.5

—

$

4.8

$

4.9

(2.0

)%

Veterinary Instruments & Disposables

15.5

15.5

—

41.1

45.4

(9.5

)%

Animal Care & Other

5.9

10.4

(43.3

)%

22.3

26.7

(16.5

)%

Biosecurity Products

15.0

23.8

(37.0

)%

52.2

66.6

(21.6

)%

Genomics Services

16.6

17.0

(2.4

)%

50.4

49.3

2.2

%

Total Animal Safety Revenue

$

54.5

$

68.2

(20.1

)%

$

170.8

$

192.9

(11.5

)%

Total Revenues

$

211.2

$

221.0

(4.4

)%

$

645.1

$

669.2

(3.6

)%

  Three months ended
February 28,

Nine months ended
February 28,

2026

2025

Change %

2026

2025

Change %

Domestic

$

102.3

$

115.4

(11.4

)%

$

314.8

$

333.5

(5.6

)%

International

108.9

105.6

3.1

%

330.3

335.7

(1.6

)%

Total revenue

$

211.2

$

221.0

(4.4

)%

$

645.1

$

669.2

(3.6

)%

Revenues for the third quarter were $211.2 million, a decrease of 4.4% when compared to $221.0 million in the prior year. Core revenue, which excludes the impacts of foreign currency translation, as well as divestitures completed and product lines discontinued in the last 12 months, increased by 0.1%. Food Safety segment revenue was $156.7 million in the third quarter, increasing 2.6% relative to the third quarter of fiscal year 2025. Core Food Safety revenue increased 4.0% on a year-over-year basis. The company saw especially strong growth in the quarter from indicators and culture media which was up 11.0% and from bacterial and general sanitation which was up 5.5%. Animal Safety segment revenue was $54.5 million in the third quarter, decreasing 20.1% relative to the third quarter of fiscal year 2025. Core Animal Safety revenue decreased (8.7%) on a year-over-year basis. The company experienced a number of third-party supplier issues in the quarter, which negatively impacted revenue. Domestic revenue in the quarter was $102.3 million and international revenue was $108.9 million. The company saw strong growth in Europe and Latin America, and U.S growth was negatively impacted by the Animal Safety supplier challenges given sales of these products predominately occur in the U.S. Summary of Income Statement

  Three months ended
February 28,

Nine months ended
February 28,

2026

2025

2026

2025

Revenue

$

211.2

$

221.0

$

645.1

$

669.2

Cost of revenues

112.2

110.7

344.4

340.7

Gross profit

99.0

110.3

300.7

328.5

Gross Margin

46.9

%

49.9

%

46.6

%

49.1

%

Operating expenses

102.3

104.9

325.4

778.3

Operating loss (income)

$

(3.3

)

$

5.4

$

(24.7

)

$

(449.8

)

Operating Margin

(1.6

)%

2.4

%

(3.8

)%

(67.2

)%

EBITDA

$

22.5

$

36.7

$

133.7

$

(360.7

)

EBITDA Margin

10.7

%

16.6

%

20.7

%

(53.9

)%

Net (Loss) Income

$

(17.0

)

$

(10.9

)

$

3.4

$

(479.8

)

Net (Loss) Earnings Per Diluted Share

$

(0.08

)

$

(0.05

)

$

0.02

$

(2.21

)

Adjusted Gross Profit

$

109.2

$

113.5

$

325.9

$

344.7

Adjusted Gross Margin

51.7

%

51.4

%

50.5

%

51.5

%

Adjusted Operating Income

$

42.2

$

42.6

$

114.8

$

126.1

Adjusted Operating Margin

20.0

%

19.3

%

17.8

%

18.8

%

Adjusted EBITDA

$

48.2

$

48.6

$

132.4

$

143.6

Adjusted EBITDA Margin

22.8

%

22.0

%

20.5

%

21.5

%

Adjusted Net Income

$

19.4

$

20.9

$

51.5

$

59.6

Adjusted Earnings Per Share

$

0.09

$

0.10

$

0.24

$

0.27

Gross margin was 46.9% in the third quarter of fiscal 2026. This compares to a gross margin of 49.9% in the same quarter a year ago, with the decrease primarily due to duplicative costs related to the company’s Petrifilm manufacturing transition with some impact from tariff costs and inventory write-offs. Excluding integration-related costs, third quarter Adjusted Gross Margin1 was 51.7% compared to 51.4% in the prior-year quarter. Net loss for the third quarter was $17.0 million, or $(0.08) per diluted share, compared to a net loss of $10.9 million, or $(0.05) per diluted share, in the prior-year period. Adjusted Net Income for the third quarter was $19.4 million, or $0.09 per diluted share, compared to $20.9 million, or $0.10 per diluted share, in the prior-year period. Third-quarter Adjusted EBITDA was $48.2 million, representing an Adjusted EBITDA Margin of 22.8%, compared to $48.6 million and a margin of 22.0% in the prior-year period. The higher adjusted EBITDA Margin was the result predominantly of cost saving initiatives implemented at the end of the first quarter of fiscal year 2027 leading to lower operating expense spend. Business and Operational Highlights

Neogen is currently completing a review of its global go-to-market strategy. As part of this review, the company plans to realign resources to higher‑return markets, establish unified solutions‑based selling standards for all global markets, and enhancing performance rigor through metric-based analysis under new commercial leadership Neogen advanced the transition to its new Petrifilm® manufacturing line. The company has completed validation on 100% of Petrifilm equipment and is actively engaged in both operational and performance validation of multiple SKUs. The company remains on track with previous timelines to have its manufacturing transition completed by November 2026. Neogen announced that it has entered into a definitive agreement to sell its global Genomics business to Zoetis Inc. for a purchase price of $160.0 million, subject to customary closing adjustments. The deal is expected to close by the end of the company’s second quarter of fiscal year 2027. Net proceeds from the transaction after closing costs and taxes are anticipated to be approximately $140.0 million. Financial Guidance

  (in millions)

Updated FY26 Guidance

Previous FY26 Guidance

Increase at Midpoint

Revenue

$857 - $860

$845 - $855

$

8.5

Adjusted EBITDA1

Approximately $175

Approximately $175

$

—

The company is increasing its fiscal year 2026 revenue guidance and is now calling for revenue of $857 million to $860 million and is maintaining its adjusted EBITDA guidance of approximately $175 million. This compares with previous revenue guidance which called for revenue of $845 million to $855 million. Adjusted EBITDA is a non-GAAP measure. The Company is not able to reconcile the Adjusted EBITDA outlook to the most directly comparable GAAP measure, forecasted net income, on a forward-looking basis without unreasonable efforts. This is due to the inherent difficulty in forecasting certain items that are necessary for such reconciliation, including (without limitation) non-cash stock-based compensation expense, integration-related expenses, restructuring and transformation-related costs, impairment charges, and the related tax effects of these items. These items are uncertain, depend on various factors outside of the Company’s control, and could be material to the Company’s results calculated in accordance with GAAP. Accordingly, the Company is unable to provide a probable significance of the unavailable information, but such unavailable information could have a potentially significant impact on the Company’s actual net income for fiscal year 2026.

Conference Call and Webcast

Neogen Corporation will host a conference call today at 8:00 a.m. Eastern Time to discuss the Company’s financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Neogen’s website at neogen.com/investor-relations. For those unable to access the webcast, the conference call can be accessed by dialing 1-800-549-8228 (North America) or (+1) 646-564-2877 (International) and requesting the Neogen Corporation Third Quarter 2026 Earnings Call (conference ID 70064). A replay of the conference call and webcast will be available shortly following the conclusion of the call, and can be accessed domestically or internationally by dialing 1-888-660-6264 or (+1) 646-517-3975, respectively, and providing the entry code 70064#, or through Neogen’s Investor Relations website at neogen.com/investor-relations.

About Neogen

Neogen Corporation is committed to fueling a brighter future for global food security through the advancement of human and animal well-being. Harnessing the power of science and technology, Neogen has developed comprehensive solutions spanning the Food Safety, Livestock, and Pet Health & Wellness markets. A world leader in these fields, Neogen has a presence in over 140 countries with a dedicated network of scientists and technical experts focused on delivering optimized products and technology for its customers.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, statements regarding our outlook, guidance and objectives; plans and expectations relating to our manufacturing transitions (including Petrifilm), supply chain remediation, commercial initiatives and cost-efficiency programs; expected timing and effects of portfolio actions (including the announced divestiture of the genomics business); capital allocation and deleveraging goals; market conditions and demand trends; and any other statements that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “target,” “will,” and similar expressions, and their negatives.

These “forward-looking statements” are management’s present expectations of future events as of the date hereof and are subject to a number of known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially and adversely from those anticipated.

These risks include, but are not limited to risks relating to the integration of the 3M Food Safety business, risks related to potential tax benefits realized through the 3M transaction, risks related to tariffs and other trade measures, risks related to our international operations and expansion into new geographic markets, risks related to identified material weaknesses in our internal control over financial reporting, risks related to promoting internal growth and identifying and integrating acquisitions, risks related to failure of our systems infrastructure and security breaches of our information systems, risks related to disruption in our manufacturing and service operations, risks related to disruption of third-party package delivery services or pricing increases, risks related to dependence on key suppliers, risks related to the use of distributors for product sales, risks related to the development of new products and technologies, risks related to our ability to maintain a positive reputation, risks related to customer loss, risks related to increased raw material costs, risks related to anti-bribery, trade control, trade sanctions, and anti-corruption laws, risks related to changes in domestic and foreign laws and regulations, risks related to tax audits and changes in tax laws in different jurisdictions, risks related to deterioration in profitability, cash flow, and asset impairments, risks related to competition, risks related to agricultural marketplace, risks related to our substantial indebtedness, risks related to the outcomes of litigation and other legal proceedings, risks related to our ability to obtain and protect intellectual property, risks related to patent infringement challenges, risks related to governmental regulation, risks related to our ability to attract and retain key personnel, risks related to product or service liability claims, risks related to changing political conditions, risks related to climate change, risks related to our inability to meet stakeholder expectations around environmental, social, and governance objectives, risks related to tax legislation, and other factors discussed under the heading “Risk Factors” contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on July 30, 2025, as well as any updates to those risk factors filed from time to time in the company’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Neogen is not under any obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

Neogen Corporation

Condensed Consolidated Statements of Operations (unaudited)

(in millions, except per share amounts)

  Three months ended
February 28,

Nine months ended
February 28,

2026

2025

2026

2025

Revenues

Product revenues

$

186.2

$

196.5

$

569.4

$

596.6

Service revenues

25.0

24.5

75.7

72.6

Total Revenues

211.2

221.0

645.1

669.2

Cost of Revenues

Cost of product revenues

96.0

95.8

296.6

293.5

Cost of service revenues

16.2

14.9

47.8

47.2

Total Cost of Revenues

112.2

110.7

344.4

340.7

Gross Profit

99.0

110.3

300.7

328.5

Operating Expenses

Sales and marketing

38.2

44.6

125.5

136.9

General and administrative

60.3

55.8

186.4

165.2

Goodwill impairment

—

—

—

461.4

Research and development

3.8

4.5

13.5

14.8

Total Operating Expenses

102.3

104.9

325.4

778.3

Operating Loss (Income)

(3.3

)

5.4

(24.7

)

(449.8

)

Other (Expense) Income

Interest expense, net

(13.9

)

(17.0

)

(43.7

)

(52.0

)

Gain on sale of business

—

—

76.4

—

Other, net

(3.1

)

1.9

(4.9

)

(0.1

)

Total Other (Expense) Income

(17.0

)

(15.1

)

27.8

(52.1

)

(Loss) Income Before Taxes

(20.3

)

(9.7

)

3.1

(501.9

)

Income Tax (Benefit) Expense

(3.3

)

1.2

(0.3

)

(22.1

)

Net (Loss) Income

$

(17.0

)

$

(10.9

)

$

3.4

$

(479.8

)

Net (Loss) Income Per Share

Basic

$

(0.08

)

$

(0.05

)

$

0.02

$

(2.21

)

Diluted

$

(0.08

)

$

(0.05

)

$

0.02

$

(2.21

)

Weighted Average Shares Outstanding

Basic

217.7

217.0

217.4

216.8

Diluted

217.7

217.0

217.9

216.8

Neogen Corporation

Condensed Consolidated Balance Sheets (unaudited)

  (in millions, except per share amounts)

February 28, 2026

May 31, 2025

Assets

Current Assets

Cash and cash equivalents

$

159.9

$

129.0

Accounts receivable, net of allowance of $4.1 and $5.4

137.1

153.4

Inventories, net of reserves of $16.5 and $16.5

161.7

190.8

Prepaid expenses and other current assets

63.1

53.3

Assets held for sale

68.2

50.4

Total Current Assets

590.0

576.9

Net Property and Equipment

331.9

339.1

Other Assets

Right of use assets

15.7

17.2

Goodwill

1,047.8

1,064.9

Amortizable intangible assets, net

1,341.8

1,410.5

Other non-current assets

31.8

35.2

Total Assets

$

3,359.0

$

3,443.8

Liabilities and Stockholders’ Equity

Current Liabilities

Current portion of debt

$

—

$

19.3

Accounts payable

75.2

79.6

Accrued compensation

23.5

14.1

Income tax payable

9.9

5.6

Accrued interest

3.5

11.1

Deferred revenue

3.9

5.6

Other current liabilities

28.2

32.1

Liabilities held for sale

6.4

6.6

Total Current Liabilities

150.6

174.0

Deferred Income Tax Liability

269.2

280.9

Non-current debt

793.3

874.8

Other non-current liabilities

43.5

42.9

Total Liabilities

1,256.6

1,372.6

Commitments and Contingencies

Equity

Preferred stock, $1.00 par value, 100,000 shares authorized, none issued and outstanding

—

—

Common stock, $0.16 par value, 315.0 shares authorized, 217.7 and 217.0 shares issued and outstanding

34.8

34.7

Additional paid-in capital

2,613.1

2,601.8

Accumulated other comprehensive loss

(12.5

)

(28.9

)

Accumulated deficit

(533.0

)

(536.4

)

Total Stockholders’ Equity

2,102.4

2,071.2

Total Liabilities and Stockholders’ Equity

$

3,359.0

$

3,443.8

Neogen Corporation

Condensed Consolidated Statements of Cash Flows (unaudited)

(in millions)

  Nine months ended February 28,

2026

2025

Cash Flows provided by Operating Activities

Net income (loss)

$

3.4

$

(479.8

)

Adjustments to reconcile net income (loss) to net cash from operating activities:

Depreciation and amortization

86.9

89.2

Deferred income taxes

(15.5

)

(33.1

)

Share-based compensation

10.4

13.0

Loss on disposal of property and equipment

1.2

0.1

Amortization of debt issuance costs

1.5

2.6

Goodwill and Other asset impairment

—

470.8

Loss on refinancing and extinguishment of debt

0.4

—

Gain on sale of business

(76.4

)

—

Other

(0.2

)

(0.3

)

Change in operating assets and liabilities:

Accounts receivable, net

16.6

9.1

Inventories, net

21.5

(25.1

)

Prepaid expenses and other current assets

(10.0

)

(6.4

)

Accounts payable and accrued liabilities

20.5

6.0

Interest expense accrual

(7.6

)

(7.5

)

Change in other non-current assets and non-current liabilities

0.3

3.2

Net Cash provided by Operating Activities

53.0

41.8

Cash Flows provided by (used for) Investing Activities

Purchases of property, equipment and intangible assets

(47.3

)

(88.5

)

Proceeds from the maturities of marketable securities

—

0.3

Proceeds from sale of business, net of cash divested

121.7

—

Proceeds from the sale of property and equipment and other

0.1

4.9

Net Cash provided by (used for) Investing Activities

74.5

(83.3

)

Cash Flows (used for) provided by Financing Activities

Issuance of shares related to equity compensation and employee stock purchase plan

1.7

2.2

Tax payments related to share-based awards

(0.7

)

(1.5

)

Repayment of finance lease

(0.1

)

(0.2

)

Repayment of outstanding debt

(100.0

)

—

Net Cash (used for) provided by Financing Activities

(99.1

)

0.5

Effects of Foreign Exchange Rate on Cash

2.5

(1.9

)

Net Increase (Decrease) in Cash and Cash Equivalents

30.9

(42.9

)

Cash and Cash Equivalents, Beginning of Year

129.0

170.6

Cash and Cash Equivalents, End of Year

$

159.9

$

127.7

Supplemental cash flow information

Property and equipment obtained for noncash consideration

$

—

$

0.9

Right of use assets obtained in exchange for new operating lease liabilities

$

4.4

$

7.0

Statement regarding use of non-GAAP financial measures

This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. Management uses Adjusted EBITDA as a key profitability measure. This is a non-GAAP measure that represents EBITDA before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses. Adjusted EBITDA Margin is Adjusted EBITDA for a particular period expressed as a percentage of revenues for that period.

Management uses Adjusted Gross Profit as an additional measure of profitability. Adjusted Gross Profit is a non-GAAP measure that represents net income before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses.

Management uses Adjusted Operating Income as an additional measure of profitability. Adjusted Operating Income is a non-GAAP measure that represents operating income before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses.

Management uses Adjusted Net Income as an additional measure of profitability. Adjusted Net Income is a non-GAAP measure that represents net income before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses.

Core revenue growth is a non-GAAP measure that represents net sales for the period excluding the effects of foreign currency translation rates and the impacts of acquisitions and discontinued product lines, where applicable. Core revenue growth is presented to allow for a meaningful comparison of year-over-year performance without the volatility caused by foreign currency translation rates, or the incomparability that would be caused by the impact of an acquisition, disposal or product line discontinuation.

These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please see below for a reconciliation of historical non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP.

NEOGEN CORPORATION

RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (UNAUDITED)

(in millions)

  Three months ended
February 28,

Nine months ended
February 28,

2026

2025

2026

2025

Net (Loss) Income

$

(17.0

)

$

(10.9

)

$

3.4

$

(479.8

)

Income tax (benefit) expense

$

(3.3

)

$

1.2

$

(0.3

)

(22.1

)

Depreciation and amortization

28.9

29.4

86.9

89.2

Interest expense, net

13.9

17.0

43.7

52.0

EBITDA

$

22.5

$

36.7

$

133.7

$

(360.7

)

Share-based compensation

1.1

4.2

10.4

13.0

FX transaction loss (gain) on loan and other revaluation (1)

1.9

(0.3

)

2.1

(0.2

)

Transaction costs (2)

3.7

0.5

8.9

1.6

3M integration costs (3)

0.4

0.6

1.1

5.4

Sample collection transition and ramp up costs (4)

4.6

2.9

13.4

4.7

Petrifilm duplicate manufacturing costs (5)

4.1

0.7

9.8

0.8

Transformation initiatives and related costs (6)

5.3

2.5

16.2

3.3

Restructuring (7)

0.4

0.2

6.9

10.1

Goodwill impairment

—

—

—

461.4

Contingent consideration adjustments

0.9

0.5

0.9

0.5

ERP expense (8)

0.6

0.6

1.7

3.2

Gain on sale of business

—

—

(76.4

)

—

Other

2.7

(0.5

)

3.7

0.5

Adjusted EBITDA

$

48.2

$

48.6

$

132.4

$

143.6

Adjusted EBITDA margin (% of sales)

22.8

%

22.0

%

20.5

%

21.5

%

(1) Net foreign currency transaction loss (gain) associated with the revaluation of foreign-currency-denominated intercompany loans.

(2) Includes legal, accounting, tax, consulting and other related costs to execute corporate transactions and capital structure initiatives.

(3) Includes costs associated with 3M transition agreements and related integration costs.

(4) Includes costs associated with transitioning off the 3M transition contract manufacturing agreement and ramp-up costs associated with our sample collection product line.

(5) Duplicate costs associated with the startup of Petrifilm manufacturing.

(6) Includes consulting and other costs, including severance, associated with transformation initiatives.

(7) Severance, non-cash impairment, and other related exit costs primarily associated with a reduction in our global headcount and global genomics business.

(8) Expenses related to ERP implementation.

NEOGEN CORPORATION

RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED NET INCOME (UNAUDITED)

(in millions)

  Three months ended
February 28,

Nine months ended
February 28,

2026

2025

2026

2025

Net (Loss) Income

$

(17.0

)

$

(10.9

)

$

3.4

$

(479.8

)

Amortization of acquisition-related intangibles

22.0

22.9

66.9

69.2

Share-based compensation

1.1

4.2

10.4

13.0

FX transaction loss (gain) on loan and other revaluation (1)

1.9

(0.3

)

2.1

(0.2

)

Transaction costs (2)

3.7

0.5

8.9

1.6

3M integration costs (3)

0.4

0.6

1.1

5.4

Sample collection transition and ramp up costs (4)

4.6

2.9

13.4

4.7

Petrifilm duplicate manufacturing costs (5)

4.1

0.7

9.8

0.8

Transformation initiatives and related costs (6)

5.3

2.5

16.2

3.3

Restructuring (7)

0.4

0.2

6.9

10.1

Goodwill impairment

—

—

-

461.4

Contingent consideration adjustments

0.9

0.5

0.9

0.5

ERP expense (8)

0.6

0.6

1.7

3.2

Gain on sale of business

—

—

(76.4

)

—

Other

2.7

(0.5

)

3.7

0.5

Estimated tax effect of above adjustments (9)

(11.3

)

(3.0

)

(17.5

)

(34.1

)

Adjusted Net Income

19.4

$

20.9

$

51.5

59.6

Adjusted Earnings Per Share

$

0.09

$

0.10

$

0.24

$

0.27

(1) Net foreign currency transaction loss (gain) associated with the revaluation of foreign-currency-denominated intercompany loans.

(2) Includes legal, accounting, tax, consulting and other related costs to execute corporate transactions and capital structure initiatives.

(3) Includes costs associated with 3M transition agreements and related integration costs.

(4) Includes costs associated with transitioning off the 3M transition contract manufacturing agreement and ramp-up costs associated with our sample collection product line.

(5) Duplicate costs associated with the startup of Petrifilm manufacturing.

(6) Includes consulting and other costs, including severance, associated with transformation initiatives.

(7) Severance, non-cash impairment, and other related exit costs primarily associated with a reduction in our global headcount and global genomics business.

(8) Expenses related to ERP implementation.

(9) Tax effect of adjustments is calculated using projected effective tax rates for each applicable item.

NEOGEN CORPORATION

RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (UNAUDITED)

(in millions)

  Three months ended February 28,

Nine months ended February 28,

2026

2025

2026

2025

Gross Profit

$

99.0

$

110.3

$

300.7

$

328.5

Transaction costs (1)

0.5

—

0.5

—

3M integration costs (2)

0.4

0.6

1.1

5.4

Sample collection transition and ramp up costs (3)

4.6

2.9

13.4

4.7

Petrifilm duplicate manufacturing costs (4)

4.1

0.7

9.8

0.8

Restructuring (5)

—

(0.3

)

—

4.6

Other

0.6

(0.7

)

0.4

0.7

Adjusted Gross Profit

$

109.2

$

113.5

$

325.9

$

344.7

(1) Includes certain manufacturing costs to execute corporate transactions.

(2) Includes costs associated with 3M transition agreements and related integration costs.

(3) Includes costs associated with transitioning off the 3M transition contract manufacturing agreement and ramp-up costs associated with our sample collection product line.

(4) Duplicate costs associated with the startup of Petrifilm manufacturing.

(5) Non-cash impairment and other related exit costs primarily associated with a reduction in our global genomics business.

NEOGEN CORPORATION

RECONCILIATION OF OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME (UNAUDITED)

(in millions)

  Three months ended
February 28,

Nine months ended
February 28,

2026

2025

2026

2025

Operating (Loss) Income

$

(3.3

)

$

5.4

$

(24.7

)

$

(449.8

)

Amortization of acquisition-related intangibles

22.0

22.9

66.9

69.2

Share-based compensation

1.1

4.2

10.4

13.0

Transaction costs (1)

3.7

0.5

8.3

1.6

3M Integration costs (2)

0.4

0.6

1.1

5.4

Sample collection transition and ramp up costs (3)

4.6

2.9

13.4

4.7

Petrifilm duplicate manufacturing costs (4)

4.1

0.7

9.8

0.8

Transformation initiatives and related costs (5)

5.3

2.5

16.2

3.3

Restructuring (6)

0.4

0.2

6.9

10.1

Goodwill impairment

—

—

—

461.4

ERP expense (7)

0.6

0.6

1.7

3.2

Other

3.3

2.1

4.8

3.2

Adjusted Operating Income

$

42.2

$

42.6

$

114.8

$

126.1

(1) Includes legal, accounting, tax, consulting and other related costs to execute corporate transactions and capital structure initiatives.

(2) Includes costs associated with 3M transition agreements and related integration costs.

(3) Includes costs associated with transitioning off the 3M transition contract manufacturing agreement and ramp-up costs associated with our sample collection product line.

(4) Duplicate costs associated with the startup of Petrifilm manufacturing.

(5) Includes consulting and other costs, including severance, associated with transformation initiatives.

(6) Severance, non-cash impairment, and other related exit costs primarily associated with a reduction in our global headcount and global genomics business.

(7) Expenses related to ERP implementation.

NEOGEN CORPORATION

RECONCILIATION OF GROWTH TO CORE GROWTH

(In millions)

  Q3 FY26

Q3 FY25

Growth

Foreign Currency

Acquisitions
/Divestitures

Core
Revenue
Growth

Food Safety

$

156.7

$ 152.8

2.6

%

4.0

% (5.4

%)

4.0

% Animal Safety

$

54.5

$ 68.2

(20.1

%)

0.5

% (11.9

%)

(8.7

%) Total Neogen

$

211.2

$ 221.0

(4.4

%)

3.0

% (7.5

%)

0.1

%  

Neogen (NEOG - Free Report) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +125.00%. A quarter ago, it was expected that this maker of medical testing kits would post earnings of $0.07 per share when it actually produced earnings of $0.1, delivering a surprise of +42.86%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Neogen, which belongs to the Zacks Medical - Products industry, posted revenues of $211.2 million for the quarter ended February 2026, surpassing the Zacks Consensus Estimate by 3.30%. This compares to year-ago revenues of $220.98 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Neogen shares have added about 47.9% since the beginning of the year versus the S&P 500's decline of 0.9%.

What's Next for Neogen?While Neogen has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Neogen was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $211.7 million in revenues for the coming quarter and $0.28 on $850.08 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Envista (NVST - Free Report) , has yet to report results for the quarter ended March 2026.

This maker of dental products is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +29.2%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.

Envista's revenues are expected to be $673.52 million, up 9.2% from the year-ago quarter.

Neogen Corporation (NEOG) Q3 2026 Earnings Call Transcript

Key Takeaways NEOG reported Q3 adjusted EPS of 9 cents and revenues of $211.2M, both topping estimates.NEOG's core revenues were up slightly, but divestitures and Animal Safety weakness dragged down sales.Neogen sees gross margin contraction and operating loss despite higher revenue guidance. Neogen Corporation (NEOG - Free Report) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of 9 cents, down 10% year over year.  However, the metric topped the Zacks Consensus Estimate by 125%.

Neogen’s Q3 RevenuesRevenues in the quarter decreased 4.4% on a year-over-year basis to $211.2 million. Meanwhile, core revenues increased 0.1%. Divestitures and discontinued product lines had a negative impact of 7.5%, while foreign currency had a positive impact of 3%. The metric topped the Zacks Consensus Estimate by 3.3%.

Following the announcement yesterday, NEOG stock fell 2.95% to close the session at $10.04.   

Neogen’s Segments in DetailThe company's Food Safety segment registered revenues of $156.7 million in the fiscal third quarter, up 2.6% year over year. This consisted of 4% core revenue growth, a negative 5.4% impact of divestitures and discontinued product lines and a positive foreign currency impact of 4%. Our model projected Food Safety revenues to be $146.6 million for the fiscal third quarter.

Revenues from the Animal Safety segment totaled $54.5 million, down 20.1% year over year. This consisted of an 8.7% core revenue decrease, a favorable 0.5% foreign currency impact and a negative 11.9% impact of divestitures and discontinued product lines. Our model’s projection for the business was $57.1 million.

Neogen’s Margin DetailsIn the third quarter of fiscal 2026, gross profit declined 10.2% year over year to $99 million. The cost of revenues edged up 1.4% to $112.2 million. The gross margin contracted 303 basis points (bps) year over year to 46.9%.

Sales and marketing expenses amounted to $38.2 million, down 14.4% year over year, whereas administrative expenses increased 8.1% from the prior-year quarter’s level to $60 million. R&D expenses totaled $3.8 million, down 15.6% year over year. The quarter recorded an operating loss of $3.3 million compared to an operating profit of $5.4 million in the year-ago period.  

Neogen’s Q3 Cash PositionNeogen’s cash and cash equivalents at the end of the fiscal third quarter totaled $137.1 million compared with $145.3 million at the end of the second quarter.

Cumulative net cash provided by operating activities came in at $53 million compared with $41.8 million a year ago.

Neogen’s Fiscal 2026 OutlookThe company raised its fiscal 2026 revenue projection, now expecting between $857 million and $860 million (previously $845 million-$855 million). The Zacks Consensus Estimate for the same currently stands at $850.1 million.

Adjusted EBITDA is expected to be roughly $175 million (same as earlier).

Our Take on NEOGNeogen ended the fiscal third quarter with better-than-expected earnings and revenues. However, both metrics were down on a year-over-year basis. The Animal Safety business experienced several third-party, supply-based setbacks, resulting in lower-than-anticipated growth. The contraction of gross margin in the quarter is also discouraging.

On a promising note, the Food Safety segment delivered another quarter of core revenue growth and was consistent with current market dynamics. Neogen made significant progress on its strategic initiatives, such as commercial prowess, high-impact innovation and operational efficiency, to stabilize and strengthen its core business. The raised revenue guidance for the year appears promising.

The company recently announced that it has entered into a definitive agreement to sell its global Genomics business to Zoetis Inc. for a purchase price of $160.0 million, subject to customary closing adjustments. The deal is expected to close by the end of the second quarter of fiscal year 2027. 

NEOG’s Zacks Rank and Key PicksNeogen currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Phibro Animal Health (PAHC - Free Report) and IDEXX Laboratories (IDXX - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2025 adjusted EPS of $1.28, topping the Zacks Consensus Estimate by 20.76%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED’s earnings yield of 4.8% favorably compares with the industry’s negative 1.6% yield. The company surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.8%.

Phibro Animal Health, carrying a Zacks Rank #2 (Buy) at present, posted second-quarter fiscal 2026 adjusted EPS of 87 cents, exceeding the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million surpassed the Zacks Consensus Estimate by 4.72%.

PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 20.15%.

IDEXX Laboratories, carrying a Zacks Rank #2, reported a fourth-quarter 2025 EPS of $3.08, which surpassed the Zacks Consensus Estimate by 18%. Revenues of $1.09 billion topped the Zacks Consensus Estimate by 1.86%.

IDXX has an earnings yield of 2.5% compared with the industry’s negative 1.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.11%.