Neogen (NASDAQ:NEOG) Posts Earnings Results, Beats Estimates By $0.03 EPS

Neogen (NASDAQ:NEOG) announced its earnings results on Thursday. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.07 by $0.03, FiscalAI reports. Neogen had a positive return on equity of 2.14% and a negative net margin of 68.47%.The company had revenue of $224.69 million for the quarter, compared to analyst estimates of $208.50 million. During the same quarter in the prior year, the company earned $0.11 EPS. The firm’s revenue for the quarter was down 2.9% compared to the same quarter last year.

Here are the key takeaways from Neogen’s conference call:

• Q2 results showed a return to positive core growth with total revenue of $224.7M (core +2.9%) and Food Safety core growth of +4.1%, and management raised FY26 guidance to $845M–$855M revenue and ~$175M adjusted EBITDA.
• Profitability and cash metrics improved — adjusted EBITDA was $48.7M (21.7%, +470 bps sequential), management implemented ~$20M of expected annualized cost savings, free cash flow improved, and the company is pursuing a genomics divestiture to accelerate balance-sheet deleveraging.
• Operational issues remain — the sample collection line has been a drag (negative impact trending from ~$10M in Q4 to ~$3M in Q2) and inventory write-offs were elevated, though management expects sample collection to return to profitability and scrap to normalize in H2.
• The Petrifilm manufacturing integration is on track for the previously disclosed Q2 FY2027 timing, with late-stage production testing and initial product validation showing encouraging early results (manufacturing of plates demonstrated).

Neogen Stock Down 0.9%

Neogen stock opened at $9.62 on Friday. The firm has a market capitalization of $2.09 billion, a price-to-earnings ratio of -3.47 and a beta of 1.96. The firm’s fifty day moving average price is $6.66 and its two-hundred day moving average price is $5.89. Neogen has a 1-year low of $3.87 and a 1-year high of $12.98. The company has a current ratio of 3.91, a quick ratio of 2.26 and a debt-to-equity ratio of 0.38.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Piper Sandler set a $6.50 price target on Neogen and gave the stock a “neutral” rating in a report on Thursday, October 16th. Wall Street Zen lowered shares of Neogen from a “buy” rating to a “hold” rating in a research note on Saturday. Guggenheim reaffirmed a “buy” rating and issued a $12.00 price target (up from $8.00) on shares of Neogen in a research note on Friday. CJS Securities raised shares of Neogen from a “market perform” rating to an “outperform” rating and set a $10.00 price objective on the stock in a research report on Wednesday, December 10th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Neogen in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $9.50.

Hedge Funds Weigh In On Neogen

Large investors have recently added to or reduced their stakes in the business. Bank of Montreal Can increased its holdings in Neogen by 4,059.4% during the 3rd quarter. Bank of Montreal Can now owns 4,592,218 shares of the company’s stock worth $26,222,000 after purchasing an additional 4,481,812 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Neogen by 21.1% during the third quarter. Bank of America Corp DE now owns 4,082,681 shares of the company’s stock valued at $23,312,000 after buying an additional 710,332 shares during the last quarter. UBS Group AG grew its holdings in Neogen by 12.7% during the third quarter. UBS Group AG now owns 3,760,047 shares of the company’s stock worth $21,470,000 after buying an additional 422,563 shares in the last quarter. Ameriprise Financial Inc. raised its position in Neogen by 169.5% in the 2nd quarter. Ameriprise Financial Inc. now owns 3,079,123 shares of the company’s stock valued at $14,718,000 after buying an additional 1,936,569 shares during the last quarter. Finally, Voloridge Investment Management LLC lifted its stake in Neogen by 56.0% during the 3rd quarter. Voloridge Investment Management LLC now owns 2,970,450 shares of the company’s stock valued at $16,961,000 after acquiring an additional 1,066,717 shares in the last quarter. Institutional investors own 96.73% of the company’s stock.

Key Headlines Impacting Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Q2 results beat consensus on key metrics and management raised FY2026 revenue guidance to $845–$855M (above consensus), signaling progress on a turnaround; investors liked the combination of revenue outperformance and guidance lift. Neogen Raises Guidance as Cost-Cutting Takes Hold
• Positive Sentiment: Market reaction: the stock spiked sharply (reports note moves >30%) after the earnings and guidance, reflecting renewed investor optimism about revenue growth and cost actions. Why Neogen Stock Blasted More Than 31% Higher Today
• Positive Sentiment: Heavy bullish options activity and call buying accompanied the move (unusually large call volume), suggesting speculative and institutional interest in the near-term upside. Neogen Posts Strong Q2 Earnings
• Neutral Sentiment: Analyst & institutional context: a small number of upgrades and divergent price targets mean consensus is still forming; some funds have been reallocating positions into/out of NEOG. Q2 2026 Earnings Call Transcript
• Negative Sentiment: Underlying GAAP metrics remain mixed: some reports show the company recorded operating and net losses and weaker operating cash flow in the quarter (contrast between adjusted EPS and GAAP results creates ambiguity about sustainable profitability). That tempers the bullish narrative and raises execution risk. QuiverQuant Q2 Earnings Summary

About Neogen

Neogen Corporation is a global provider of food and animal safety products, offering a broad portfolio of diagnostic and testing solutions. Headquartered in Lansing, Michigan, the company develops and manufactures tests designed to detect foodborne pathogens, allergens and toxins in food, beverage and environmental samples. Since its founding in 1982, Neogen has focused on delivering rapid, accurate and user‐friendly assays to food processors, grain handlers and quality laboratories around the world.

In the food safety arena, Neogen’s product lineup includes immunoassay kits, molecular diagnostics and enrichment media for pathogens such as Salmonella, Listeria and E.