Neogen Corporation (NASDAQ:NEOG) delivered a strong second-quarter earnings surprise on Thursday, topping market expectations even as reported revenue edged lower from a year earlier.
The update sparked a sharp market reaction, with the food and animal safety group’s shares surging about 20.6% in pre-market trading.
For the quarter ended November 30, 2025, Neogen reported adjusted earnings of $0.10 per share, well ahead of the consensus forecast of $0.03. Revenue totalled $224.7 million, comfortably exceeding expectations of $208.12 million, although this marked a 2.8% decline from $231.3 million in the same quarter last year. On a core basis—excluding foreign exchange effects and divestitures—revenue grew 2.9% year on year.
Commenting on the performance, chief executive officer and president Mike Nassif said: “I am exceptionally proud of the Neogen team as we have initiated the first phase of our strategic transformation with early work focused on stabilizing and strengthening our core business.”
He added: “While it is early in the process, and our industry is currently seeing macro headwinds, our team drove significant sequential improvement in core revenue growth and profitability in the second quarter.”
By division, Food Safety revenue increased 0.8% to $165.6 million, while Animal Safety revenue fell 11.8% to $59.1 million, largely reflecting the impact of divestitures and discontinued product lines.
Adjusted EBITDA came in at $48.7 million, equating to a margin of 21.7%, compared with $51.4 million and a 22.2% margin in the prior-year period. Neogen said its Petrifilm manufacturing transition continues to progress as planned.
Looking ahead, the company lifted its full-year fiscal 2026 guidance. Neogen now expects revenue of between $845 million and $855 million, above the current analyst consensus of $825 million. Adjusted EBITDA is forecast at roughly $175 million, with capital spending of about $50 million.
The group also pointed to recent enhancements to its leadership team, including new appointments within its commercial organisation, which it believes will help accelerate its strategic transformation aimed at driving revenue growth and improving profitability.
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