Neogen’s Q2 revenue dips but beats forecasts, sending stock soaring 31%
Neogen has released its second-quarter results for fiscal 2026, showing a slight drop in revenue and profit. Despite the decline, both figures came in higher than analysts had predicted. The company’s stock price surged by over 31% following the announcement.
The safe food and animal health specialist reported revenue of $224.7 million for the quarter, down nearly 3% from the same period last year. Neogen pointed to divestitures and discontinued product lines as the main reasons for the dip. Still, the total exceeded market expectations.
Net income also fell, with non-GAAP earnings reaching $22.6 million—lower than the $24.4 million recorded a year ago. The drop was linked to a decrease in operating income, though the results remained above forecasts.
In response to the quarterly performance, Neogen raised its full-year revenue guidance. The new range sits between $845 million and $855 million, up from the previous estimate of $820 million to $840 million. Adjusted EBITDA projections were also lifted to around $175 million, compared to the earlier range of $165 million to $175 million.
The company has undergone leadership changes in 2026, largely due to its acquisition of 3M’s Safe Food business. The restructuring aimed to align the management team with the needs of the expanded organization.
Neogen’s updated guidance reflects confidence in its financial outlook for the year. The stock’s sharp rise suggests investor approval of the company’s performance and strategic direction. The adjustments in leadership and operations follow the integration of 3M’s Safe Food division, marking a period of transition for the business.
