European Investor
07 Oct 2026, 09:08
Neogen Jumps 11% Premarket After Strong Q1 Growth and Raised Fiscal 2027 Guidance
Neogen (NASDAQ: NEOG) shares surged about 11% in premarket trading after the food safety company reported stronger first-quarter fiscal 2027 results and raised its full-year revenue and adjusted EBITDA outlook.
First-quarter revenue increased 6.5% year over year to $222.8 million, while core growth reached 8.1%. Food Safety revenue rose 7.4% to $163.2 million and Animal Safety revenue increased 4.2% to $59.6 million, with both segments posting roughly 8% core growth.
Profitability also improved on an adjusted basis. Adjusted EBITDA rose to $41.6 million from $35.5 million a year earlier, while adjusted EBITDA margin expanded to 18.7% from 17.0%. Adjusted net income increased to $17.5 million, or $0.08 per share, from $9.5 million, or $0.04 per share, in the prior-year quarter.
The company still reported a GAAP net loss of $11.9 million, or $0.05 per share, compared with net income of $36.3 million a year earlier, though the prior-year result benefited from a non-cash gain tied to a divestiture.
Operational progress also supported sentiment. Neogen said it remains on track to begin the planned multi-quarter transfer of Petrifilm manufacturing to its Lansing facility in November 2026, with the first SKU already fully validated.
The strongest catalyst appears to be the guidance increase. Neogen now expects fiscal 2027 revenue of $885 million to $890 million, up from $880 million to $885 million previously, and adjusted EBITDA of $181 million to $183 million, compared with prior guidance of $180 million to $182 million.
The combination of solid core growth, margin expansion, improving execution and higher full-year guidance appears to be driving the sharp premarket move.
Neogen (NASDAQ: NEOG) shares surged about 11% in premarket trading after the food safety company reported stronger first-quarter fiscal 2027 results and raised its full-year revenue and adjusted EBITDA outlook.
First-quarter revenue increased 6.5% year over year to $222.8 million, while core growth reached 8.1%. Food Safety revenue rose 7.4% to $163.2 million and Animal Safety revenue increased 4.2% to $59.6 million, with both segments posting roughly 8% core growth.
Profitability also improved on an adjusted basis. Adjusted EBITDA rose to $41.6 million from $35.5 million a year earlier, while adjusted EBITDA margin expanded to 18.7% from 17.0%. Adjusted net income increased to $17.5 million, or $0.08 per share, from $9.5 million, or $0.04 per share, in the prior-year quarter.
The company still reported a GAAP net loss of $11.9 million, or $0.05 per share, compared with net income of $36.3 million a year earlier, though the prior-year result benefited from a non-cash gain tied to a divestiture.
Operational progress also supported sentiment. Neogen said it remains on track to begin the planned multi-quarter transfer of Petrifilm manufacturing to its Lansing facility in November 2026, with the first SKU already fully validated.
The strongest catalyst appears to be the guidance increase. Neogen now expects fiscal 2027 revenue of $885 million to $890 million, up from $880 million to $885 million previously, and adjusted EBITDA of $181 million to $183 million, compared with prior guidance of $180 million to $182 million.
The combination of solid core growth, margin expansion, improving execution and higher full-year guidance appears to be driving the sharp premarket move.
