Quick Verdict
Neogen reported revenue of $222.8 million, up 6.5%, and adjusted EPS of $0.08, exceeding reported consensus estimates. GAAP EPS remained negative at $0.05. Shares initially gained approximately 8% after hours. Higher margins, positive free cash flow, and raised annual guidance support recovery, although order timing helped first-quarter growth.
About Neogen Corporation
Neogen Corporation (NASDAQ: NEOG), founded in 1982 and headquartered in Lansing, Michigan, supplies products and services supporting food safety, livestock health, and pet health and wellness. Its diagnostic and laboratory portfolio helps customers identify pathogens, allergens, natural toxins, and other contamination risks, while its animal safety operations include veterinary instruments, biosecurity products, and genomics services. The company operates in more than 140 countries.
Neogen’s indicative equity value is approximately $2.55 billion, calculated using its October 7 closing price of $11.68 and first-quarter weighted-average basic shares of 218.1 million; this is an estimate rather than a verified market-cap quotation. A current company profile lists 2,636 employees.
For fiscal 2027, management is prioritizing commercial execution, innovation, inventory optimization, and the planned transfer of Petrifilm manufacturing to Lansing. Its pending genomics divestiture remains subject to regulatory review, with reviews expected to conclude by December 2026. Both initiatives are important operational and balance-sheet milestones.
Top Financial Highlights
- Total revenue reached $222.8 million, increasing 6.5% year over year from $209.2 million.
- Core revenue growth was 8.1%, including approximately 300 basis points of benefit from customer-order timing and prior-year distributor inventory adjustments.
- GAAP net loss was $11.9 million, compared with net income of $36.3 million a year earlier.
- GAAP diluted EPS was −$0.05, compared with $0.17 in Q1 FY2026.
- Adjusted net income increased to $17.5 million from $9.5 million, while adjusted diluted EPS doubled to $0.08 from $0.04.
- Gross margin improved to 47.4% from 45.4%; adjusted gross margin increased to 49.8% from 49.5%.
- Adjusted EBITDA reached $41.6 million, versus $35.5 million; its margin expanded to 18.7% from 17.0%.
- Operating cash flow increased to $12.9 million from $10.8 million.
- Free cash flow was positive at $4.7 million, compared with negative $13.2 million in the prior-year quarter, calculated from operating cash flow less capital expenditures.
- Food Safety revenue was $163.2 million, with company-reported growth of 7.4% and core growth of 8.1%.
- Animal Safety revenue was $59.6 million, with company-reported growth of 4.2% and core growth of 8.0%.
- Domestic revenue was $110.1 million, while international revenue was $112.7 million; every geographic region recorded growth.
- Cash and cash equivalents totaled $172.0 million at August 31, versus $185.5 million at May 31; reported non-current debt was $774.2 million.
- FY2027 guidance increased to revenue of $885 million–$890 million and adjusted EBITDA of $181 million–$183 million.
Beat or Miss?
Neogen delivered a beat on revenue and adjusted EPS against MarketBeat’s reported consensus. However, published revenue estimates differ by provider, so the size of the revenue surprise depends on the benchmark used.
| Metric | Reported | Difference/Analysis |
| Q1 revenue | $222.8 million | Against MarketBeat’s $208.18 million consensus: approximately $14.62 million above expectations, or 7.0%. |
| Adjusted diluted EPS | $0.08 | Against the rounded $0.05 consensus: $0.03 above expectations. |
| GAAP diluted EPS | −$0.05 | Comparable GAAP consensus not verified; do not compare directly with adjusted EPS expectations. |
| GAAP net income | −$11.9 million | N/A: Comparable analyst estimate not verified. |
| FY2027 revenue guidance | $885 million–$890 million | Midpoint of $887.5 million is approximately $4.3 million above the cited $883.2 million consensus. |
| FY2027 adjusted EBITDA guidance | $181 million–$183 million | Midpoint increased by $1 million from the previous $180 million–$182 million range; analyst consensus not verified. |
Investing.com’s report, republished by Yahoo Finance, used a lower revenue consensus of $204.7 million, implying an $18.1 million beat. Accordingly, the article uses MarketBeat’s benchmark consistently rather than combining estimates from different providers.
What Leadership Is Saying
“As we entered fiscal year 2027, our focus shifted from strengthening fundamentals to scaling them to drive more consistent execution, improved customer outcomes and profitable growth.”
“Adjusted EBITDA was $41.6 million in the quarter, representing a margin of 18.7% and 170 basis points of expansion. We delivered this margin improvement while investing in the things Mike mentioned to position the company for the future: commercial capabilities, high-impact innovation, and enabling technology and enterprise systems.”
Historical Performance
Q1 FY2027 ended August 31, 2026; Q1 FY2026 ended August 31, 2025. Dollar amounts below are in millions, except EPS. Percentage changes are calculated from the displayed figures.
| Category | Q1 FY2027 | Q1 FY2026 | Change (%) |
| Revenue | $222.80 | $209.20 | 6.50% |
| GAAP net income/(loss) | −$11.9 | $36.30 | −132.8%; swung to a loss |
| Operating expenses | $107.30 | $111.10 | −3.4% |
| Gross profit | $105.50 | $95.00 | 11.10% |
| Adjusted net income | $17.50 | $9.50 | 84.20% |
| Adjusted EBITDA | $41.60 | $35.50 | 17.20% |
| Adjusted diluted EPS | $0.08 | $0.04 | 100.00% |
| Operating cash flow | $12.90 | $10.80 | 19.40% |
The deterioration in GAAP net income does not mirror the operating improvement. Q1 FY2026 included a $76.4 million gain on the sale of a business, primarily explaining the unusually strong prior-year net profit. Meanwhile, the operating loss narrowed to $1.8 million from $16.1 million, and adjusted net income increased substantially.
Competitor benchmark: IDEXX Laboratories
IDEXX provides a relevant animal diagnostics, livestock, dairy, and water-testing benchmark, but it is not a like-for-like substitute for Neogen’s food safety-heavy business mix. Its latest quarterly results available on the reviewed investor-relations page are Q2 2026, ended June 30, rather than Neogen’s June–August fiscal quarter. The comparison below therefore uses IDEXX’s own corresponding prior-year quarter.
Dollar amounts are in millions.
| Category | Q2 2026 | Q2 2025 | Change (%) |
| Revenue | $1,216.59 | $1,109.46 | 9.70% |
| Net income | $338.41 | N/A: Not verified in retrieved evidence | N/A |
| Operating expenses | $353.52 | $321.69 | 9.90% |
| Operating income | $425.57 | $373.05 | 14.10% |
| Diluted EPS | $4.27 | $3.63 | 17.60% |
Sources: IDEXX’s earnings release and quarterly-filing coverage. N/A indicates a missing verified comparison, not zero.
IDEXX’s reported operating margin was 35.0%, versus 33.6% a year earlier. Neogen’s GAAP operating margin remained negative at −0.8%, although its adjusted operating margin improved to 16.4%. These results show the companies’ different profitability profiles, but their different product mixes and reporting periods limit direct conclusions about competitive performance.
How the Market Reacted?
Neogen shares initially rose approximately 8% in after-hours trading following the October 6 earnings announcement, according to Investing.com’s report republished by Yahoo Finance. That initial response did not hold through the next regular-session close: MarketBeat lists an October 7 closing price of $11.68, down $0.28, or 2.34%.
The earnings figures support a more positive operating outlook through higher adjusted profitability and raised guidance, but the GAAP loss and management’s warning about slower Q2 core growth temper the headline strength.
Sources
