Neogen 2026 Q2 Earnings Record Net Income Surges 96.5% as Revenue Dips 2.8%

Neogen (NEOG) reported Q2 2026 earnings on January 8, 2026, delivering a record net income of $-15.92 million (a 96.5% reduction in losses from $-456.28 million in 2025 Q2) despite a 2.8% year-over-year revenue decline to $224.69 million. The company raised FY2026 guidance to $845–855 million revenue and $175 million adjusted EBITDA, reflecting outperforming Q2 results and disciplined cost-cutting measures.

Revenue

Neogen’s Q2 revenue fell 2.8% to $224.69 million, driven by a $6.57 million decline in the Animal Safety segment, which generated $59.14 million. The Food Safety segment, however, remained resilient at $165.55 million, offsetting weaker performance in Animal Safety. Corporate and Eliminations contributed $0 to total revenue. While the company faced macroeconomic headwinds, its Food Safety division demonstrated stability, with 75% of customers purchasing multiple product categories.

Earnings/Net Income

The company narrowed its net loss to $-15.92 million in Q2 2026, a 96.5% improvement from $-456.28 million in 2025 Q2. Earnings per share improved to a loss of $0.07 from $2.10, marking a 96.7% reduction in losses. The EPS beat indicates strong improvement in profitability.

Post-Earnings Price Action Review

The stock price of Neogen surged 5.09% on the latest trading day, 38.91% week-to-date, and 62.37% month-to-date. However, a strategy of buying NEOG after earnings beats and holding for 30 days underperformed the benchmark by 163.82%, returning -83.22%. The strategy exhibited high risk, with a Sharpe ratio of -0.65 and volatility of 47.23%, underscoring the stock’s inherent volatility.

CEO Commentary

CEO Mikhael Nassif highlighted Neogen’s return to core growth across all segments, 500-basis-point sequential EBITDA margin improvement, and $20 million in annualized cost savings. Strategic priorities include leveraging Food Safety’s competitive advantages, elevating Animal Safety via partnerships, and integrating Petrifilm by Q2 2027. Nassif expressed confidence in exiting FY2026 as a “leaner, more disciplined organization.”

Guidance

Neogen raised FY2026 revenue guidance to $845–855 million and adjusted EBITDA to $175 million, driven by Q2’s outperformance. CFO Bryan Riggsbee noted cautious second-half assumptions due to macroeconomic challenges but emphasized positive free cash flow and a $50 million annual capital expenditure plan. The genomics business divestiture in Q4 aims to accelerate deleveraging.

Additional News

Neogen announced key leadership changes, including Bryan Riggsbee as CFO, Joe Freels as Chief Commercial Officer, and Jeremy Yarwood as Chief Scientific Officer. The company also outlined plans to integrate Petrifilm by Q2 2027 and complete the genomics business divestiture in Q4 2026. CEO Nassif emphasized a “new chapter” of operational discipline and cost optimization, supported by $20 million in annualized savings from restructuring efforts.