New York, January 8, 2026, 11:02 EST — Regular session
- Neogen shares rose about 27% after the company posted a quarterly adjusted profit and raised its full-year outlook
- Management flagged improving margins and said the Petrifilm manufacturing transition remains on track
- Investors now look to the next update on integration progress and demand trends
Neogen Corp shares climbed about 27% to $9.38 in late morning trade, after the food and animal safety products maker beat quarterly profit expectations and lifted its full-year forecast. The stock hit a session high of $10.22.
The move matters because Neogen has been trying to convince investors its transformation plan is starting to bite, after months of work to stabilize operations tied to the former 3M food safety business. Traders have been quick to reward any sign that supply issues and cost pressure are easing.
Neogen earned 10 cents a share on an adjusted basis in its fiscal second quarter, topping analysts’ consensus estimate of 6 cents, Barron’s reported, citing FactSet. Revenue slipped 2.8% to $224.7 million but still came in ahead of expectations, the report said.
In the quarter ended Nov. 30, Neogen posted a net loss of $15.9 million, versus a much larger loss a year earlier when a goodwill impairment charge weighed on results. Chief Executive Mike Nassif said “significant sequential improvement” in core revenue growth and profitability helped the quarter, even as the company saw “macro headwinds.” Business Wire
Adjusted EBITDA — earnings before interest, tax, depreciation and amortization, adjusted for certain items — was $48.7 million and the margin was 21.7%. That was up 470 basis points, or 4.7 percentage points, from the prior quarter, the company said. Neogen ended the quarter with $145.3 million in cash and $800 million of debt.
A slide deck released with the results showed Neogen lifted its fiscal 2026 revenue outlook to $845 million-$855 million and now sees adjusted EBITDA of about $175 million, with capital spending around $50 million. The company had previously guided to $820 million-$840 million of revenue and $165 million-$175 million of adjusted EBITDA, and said it has cut headcount by about 10% as it pushes the Petrifilm manufacturing transition and a process for its Genomics business.
But the rally also raises the bar. Any slip in the Petrifilm transition, a fresh pop in tariffs, or a deeper slowdown in food and animal markets could squeeze gross margin and put the forecast back in play.
