Neogen Soars 38.75% on Revised Revenue Guidance, Cost-Cutting Boost

The share price rose to its highest level since the start of this month today, with an intraday gain of 38.75%.

Neogen’s surge follows its revised fiscal 2026 revenue guidance, raised to $845 million–$855 million from $820 million–$840 million, driven by outperforming Q2 results. The company reported $224.7 million in revenue, exceeding forecasts, and adjusted EBITDA of $48.7 million, reflecting a 470-basis-point sequential margin improvement. Strategic cost-cutting initiatives, including $20 million in annualized savings from layoffs and operational restructuring, underpinned the turnaround. Leadership changes, including new hires in key roles, and progress in integrating the Petrifilm product line further bolstered investor confidence.

Despite challenges in the Animal Safety segment—marked by a 12% year-over-year revenue decline—the Food Safety division, which accounts for 73.8% of total revenue, showed resilience with 4.1% core growth. CEO Mike Nassif emphasized a shift toward “solutions-based selling” and operational discipline, while CFO Bryan Riggsbee highlighted improved free cash flow. However, macroeconomic headwinds, including food producer bankruptcies and herd declines, remain risks. The stock’s sharp rise reflects optimism around Neogen’s rebranding as a food safety leader and its focus on high-growth areas like biosecurity, though sustained execution on cost discipline and product integration will be critical to maintaining momentum.

The company’s recent performance has drawn attention from investors and analysts, with many considering it a strong contender in the food safety sector. Analysts have praised the company’s strategic cost-cutting and rebranding efforts, which are seen as pivotal in transforming its market position. However, observers remain cautious about the long-term sustainability of its current trajectory, especially in light of broader industry challenges. The renewed focus on biosecurity and solutions-based selling could position Neogen as a leader in the evolving landscape of food safety and animal health technologies.