WS Investor
08 Jan 2026, 16:34
Neogen Corporation reported second-quarter fiscal 2026 results showing improving profitability and core growth momentum, despite headline revenue declining amid portfolio changes and macro headwinds.
Revenue for the quarter ended November 30, 2025, totaled $224.7 million, down 2.8% year over year, while core revenue—excluding currency effects, divestitures, and discontinued products—grew 2.9%. The company posted a net loss of $15.9 million, or $0.07 per share, a significant improvement from a large prior-year loss driven by a non-cash goodwill impairment. Adjusted net income came in at $22.6 million, or $0.10 per share. Adjusted EBITDA was $48.7 million, with the adjusted EBITDA margin improving 470 basis points sequentially to 21.7%.
Gross margin declined to 47.5% from 49.0% a year earlier, reflecting tariff costs, inventory write-offs, and product mix, partially offset by lower operating expenses. Neogen highlighted progress in its strategic transformation, including the hiring of senior commercial leaders and continued execution of the Petrifilm manufacturing transition, which management said remains on track.
Segment performance was mixed. Food Safety revenue increased 0.8% year over year to $165.6 million, supported by strong core growth in Indicator Testing, Culture Media, and pathogen detection products. Animal Safety revenue fell 11.8% to $59.1 million, largely due to divestitures, though core growth was supported by biosecurity products. Citing sequential improvements and operational progress, Neogen raised its full-year fiscal 2026 revenue and adjusted EBITDA guidance.
Revenue for the quarter ended November 30, 2025, totaled $224.7 million, down 2.8% year over year, while core revenue—excluding currency effects, divestitures, and discontinued products—grew 2.9%. The company posted a net loss of $15.9 million, or $0.07 per share, a significant improvement from a large prior-year loss driven by a non-cash goodwill impairment. Adjusted net income came in at $22.6 million, or $0.10 per share. Adjusted EBITDA was $48.7 million, with the adjusted EBITDA margin improving 470 basis points sequentially to 21.7%.
Gross margin declined to 47.5% from 49.0% a year earlier, reflecting tariff costs, inventory write-offs, and product mix, partially offset by lower operating expenses. Neogen highlighted progress in its strategic transformation, including the hiring of senior commercial leaders and continued execution of the Petrifilm manufacturing transition, which management said remains on track.
Segment performance was mixed. Food Safety revenue increased 0.8% year over year to $165.6 million, supported by strong core growth in Indicator Testing, Culture Media, and pathogen detection products. Animal Safety revenue fell 11.8% to $59.1 million, largely due to divestitures, though core growth was supported by biosecurity products. Citing sequential improvements and operational progress, Neogen raised its full-year fiscal 2026 revenue and adjusted EBITDA guidance.
