Neogen Corporation Reports Second Quarter Fiscal 2026 Results

Key Takeaways:

• Neogen Corporation Q2 revenues declined 2.8 percent year over year, while core revenue increased 2.9 percent.
• Net loss narrowed significantly compared to the prior-year period due to the absence of a goodwill impairment charge.
• Food Safety segment posted modest revenue growth, while Animal Safety revenues declined primarily due to divestitures.
• The company raised its full-year fiscal 2026 revenue and Adjusted EBITDA outlook.

Neogen Corporation Reports Second Quarter Financial Performance

Neogen Corporation (NASDAQ: NEOG) announced financial results for the second quarter ended November 30, 2025. Revenues for the quarter were $224.7 million, a decrease of 2.8 percent compared to $231.3 million in the prior-year period. Core revenue, which excludes the effects of foreign currency, divestitures, and discontinued product lines, increased by 2.9 percent.

Net loss for the quarter was $15.9 million, or $(0.07) per diluted share, compared to a net loss of $456.3 million, or $(2.10) per diluted share, in the prior-year period. The improvement reflected the absence of a non-cash goodwill impairment charge recorded in the prior year. Adjusted net income was $22.6 million, or $0.10 per diluted share, compared to $24.4 million, or $0.11 per diluted share, a year earlier.

Gross margin was 47.5 percent, down from 49.0 percent in the same quarter last year, primarily due to tariff costs, inventory write-offs, and product mix. Adjusted EBITDA totaled $48.7 million, representing a margin of 21.7 percent, compared to $51.4 million and a margin of 22.2 percent in the prior-year period.

Neogen Corporation Details Segment-Level Results

Food Safety Segment

Food Safety segment revenues were $165.6 million, up 0.8 percent year over year. Core revenue increased 4.1 percent, offset by a 4.6 percent negative impact from divestitures and discontinued product lines, and a positive foreign currency impact of 1.3 percent. Core growth was strongest in Indicator Testing and Culture Media, supported by higher sales of sample collection products and Petrifilm. Growth in pathogen detection products contributed to results in the Bacterial and General Sanitation category, while allergen product sales increased in the Natural Toxins & Allergens category, partially offset by lower natural toxin test kit sales.

Animal Safety Segment

Animal Safety segment revenues declined 11.8 percent to $59.1 million. Core revenue increased 0.1 percent, while divestitures and discontinued product lines had an 11.7 percent negative impact. Core growth was led by the Biosecurity category, supported by insect control product sales. Lower revenues in Veterinary Instruments & Disposables reflected reduced needle and syringe sales, while Life Sciences revenues were impacted by timing of substrate order fulfillment. Genomics core revenue growth was in the mid-single-digit range globally, with strength in bovine and other markets offset by weaker companion animal demand.

Neogen Management Commentary And Fiscal 2026 Outlook

“I am exceptionally proud of the team as we have initiated the first phase of our strategic transformation with early work focused on stabilizing and strengthening our core business,” said Mike Nassif. He added that sequential improvement in core revenue growth and profitability was achieved despite macroeconomic headwinds.

Looking ahead, the company raised its full-year fiscal 2026 outlook, with revenue expected to range between $845 million and $855 million, and Adjusted EBITDA projected at approximately $175 million. Capital expenditures are expected to total around $50 million.