Neogen 2025 Q4 Earnings Misses Targets as Net Income Declines Dramatically

Neogen (NEOG) reported its fiscal 2025 Q4 earnings on Jul 30th, 2025. Neogen's results fell short of expectations, with revenues declining by 4.8% and net losses widening significantly. The company's guidance for the upcoming quarter remains cautious, projecting revenue similar to the current quarter's outcome and an EPS in line with the current loss. This reflects ongoing challenges in market conditions and competition, as acknowledged by the CEO. Despite these setbacks, Neogen remains committed to strategic investments aimed at future growth.

Revenue

Earnings/Net Income
Neogen's losses deepened to $2.82 per share in 2025 Q4 from a loss of $0.03 per share in 2024 Q4 (11182.4% wider loss). Meanwhile, the company's net loss widened to $-612.20 million in 2025 Q4, representing a 11205.6% increase from the $-5.42 million loss recorded in 2024 Q4. Record Low. The EPS indicates a significant deterioration in performance.

Price Action
The stock price of Neogen has edged down 2.39% during the latest trading day, has dropped 7.21% during the most recent full trading week, and has edged down 0.74% month-to-date.

Post-Earnings Price Action Review
The strategy of buying NEOG when it beats revenue and holding for 30 days resulted in a -83.53% return, significantly underperforming the benchmark return of 87.61%. Despite the strategy's maximum drawdown being zero, the negative Sharpe ratio of -0.72 and high volatility of 42.34% highlight the considerable risks involved. This performance suggests that the stock's post-earnings movements have been profoundly unfavorable, reflecting underlying issues within the company. Investors who adopted this strategy faced substantial losses compared to broader market benchmarks, indicating that Neogen's earnings surprises did not translate into sustained stock price appreciation. The analysis underscores the importance of cautious evaluation of such strategies, especially in volatile market conditions, where the company's fundamental challenges may outweigh the potential short-term gains from earnings beats.

CEO Commentary
Neogen's CEO emphasized the challenges faced in the recent quarter, attributing a decline in revenue to broader market conditions and increased competition. Despite these difficulties, he highlighted growth drivers such as ongoing investments in innovative product development and strategic partnerships aimed at enhancing market positioning. The CEO expressed optimism about the company's ability to navigate these challenges, focusing on operational efficiencies and leveraging core competencies to drive future growth.

Guidance
Neogen expects to achieve a revenue target of approximately $225 million for the upcoming quarter, with an anticipated EPS of -$2.82. The leadership guided for continued investments in product innovation and market expansion, aiming to stabilize revenue growth and return to profitability in the following fiscal year.

Additional News
Neogen recently announced a leadership change, appointing Mike Nassif as its new CEO and President, effective August 11, 2025. Nassif, formerly the Global President of the Point-of-Care Diagnostics business at Siemens Healthineers, is expected to bring significant growth experience to Neogen. This change follows the resignation of John Adent and reflects the company's effort to enhance its strategic direction amid challenging circumstances. Investors reacted positively to the announcement, with shares witnessing a brief uptick in anticipation of Nassif's leadership. The transition comes at a critical time as Neogen navigates integration issues related to its merger with 3M's Food Safety Division.