Neogen Corporation reported second‑quarter 2026 results that surpassed revenue expectations and lifted its full‑year outlook. Total revenue reached $224.7 million, a 2.8% decline from $231.3 million a year earlier, but core revenue—excluding foreign‑currency effects, divestitures, and discontinued lines—grew 2.9% to $224.7 million, reflecting a rebound in its Food Safety and Animal Safety segments.
The company posted a net loss of $15.9 million, or $(0.07) per diluted share, compared with a $456.3 million loss a year ago. Adjusted net income was $22.6 million, or $0.10 per diluted share, down from $24.4 million a year earlier. The adjusted EPS beat consensus estimates of $0.06–$0.07, while the reported EPS missed the $0.07 estimate, illustrating the impact of one‑time charges and the company’s focus on core profitability.
Gross margin fell to 47.5% from 49.0% a year earlier, driven by tariff costs, inventory write‑offs, and a shift in product mix. However, margin compression was offset by a 210‑basis‑point sequential improvement, indicating that cost‑control measures and a higher‑margin product mix are beginning to take effect.
Adjusted EBITDA rose to $48.7 million, a 21.7% margin, down from 22.2% a year earlier but up 470 basis points sequentially. The improvement is largely attributable to higher gross margin and a headcount reduction implemented during the quarter, which reduced operating expenses and enhanced operational leverage.
Segment performance shows Food Safety revenue at $165.6 million, up 0.8% YoY, driven by modest growth in pathogen detection and Petrifilm products. Animal Safety revenue was $59.1 million, down 11.8% YoY, reflecting a decline in legacy product lines but offset by growth in biosecurity offerings.
Management highlighted the return to positive core growth across both segments and the sequential expansion of adjusted EBITDA margins. CEO Mike Nassif said the company is “initiating the first phase of our strategic transformation with early work focused on stabilizing and strengthening our core business.” CFO Bryan Riggsbee noted that the quarter’s results “reflect a return to positive core growth in both segments for the first time in four quarters.”
Neogen raised its full‑year 2026 revenue guidance to $845 million–$855 million, up from the prior $824.5 million range, and maintained its adjusted EBITDA target of approximately $175 million. The guidance increase signals management’s confidence in the company’s turnaround strategy and the expected benefits of integrating the 3M Food Safety assets and cost‑saving initiatives.
Headwinds remain, including macro‑economic weakness in end markets and ongoing tariff costs, but the company is benefiting from a $20 million annualized savings plan and a solutions‑based selling approach that is expected to drive future growth.
The earnings beat and guidance raise are expected to reinforce investor confidence in Neogen’s strategic reset, as the company moves toward a “stronger, leaner, and more disciplined organization” poised for growth in fiscal 2027 and beyond.
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