NEOGEN CORP (NEOG): Results of Operations and Financial Condition
NEOGEN CORP (NEOG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Neogen Reports Fourth Quarter and Full Fiscal Year 2026 Financial Results Delivered Strong Core Growth in Q4 FY26 with Food Safety Core Growth Highest Since FY23 • Fiscal fourth quarter 2026 revenue of $225.3 million representing growth of (0.1%) and Core Growth 1 of
How this was made
The 30-second read
Why it matters
The combination of quantified profitability improvement (Adjusted EBITDA margin 20.2% in Q4), segment-level growth (Food Safety core growth highest since FY23), and explicit Petrifilm manufacturing milestones can drive repricing of near-term earnings expectations and execution risk.
Market read
Actionable for traders because it is a first-hand earnings-and-guidance disclosure with operational milestone dates that can affect forward estimates.
What to watch
The filing references supply challenges resolution and a manufacturing transition; traders may need to watch for any guidance details and execution risk around the Nov 2026 transition window.
Neogen Reports Fourth Quarter and Full Fiscal Year 2026 Financial Results Delivered Strong Core Growth in Q4 FY26 with Food Safety Core Growth Highest Since FY23
Fourth-quarter core revenue growth, Food Safety growth, gross-margin expansion and adjusted EBITDA growth were positive, while reported revenue was down (0.1%), Animal Safety revenue declined (8.2%), and full-year revenue declined (2.7%).
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 FY26 Total Revenue, netGAAP | $225.3 million | – | (0.1%) |
| FY26 Total Revenue, netGAAP | $870.4 million | – | (2.7%) |
| Q4 FY26 Core revenue growthother | 4.3% | – | – |
| FY26 Core revenue growthother | 1.9% | – | – |
| Q4 FY26 Cost of RevenuesGAAP | $117.5 million | – | – |
| FY26 Cost of RevenuesGAAP | $461.9 million | – | – |
| Q4 FY26 Gross ProfitGAAP | $107.8 million | – | – |
| FY26 Gross ProfitGAAP | $408.5 million | – | – |
| Q4 FY26 Gross MarginGAAP | 47.8% | – | – |
| FY26 Gross MarginGAAP | 46.9% | – | – |
| Q4 FY26 Operating ExpensesGAAP | $104.7 million | – | – |
| FY26 Operating ExpensesGAAP | $430.1 million | – | – |
| Q4 FY26 Operating Income (Loss)GAAP | $3.1 million | – | – |
| FY26 Operating Income (Loss)GAAP | $(21.6 million) | – | – |
| Q4 FY26 Operating MarginGAAP | 1.4% | – | – |
| FY26 Operating MarginGAAP | (2.5)% | – | – |
| Q4 FY26 Net LossGAAP | $(11.3 million) | – | – |
| FY26 Net LossGAAP | $(7.9 million) | – | – |
| Q4 FY26 Net Loss Per Diluted ShareGAAP | $(0.05) | – | – |
| FY26 Net Loss Per Diluted ShareGAAP | $(0.04) | – | – |
| Q4 FY26 EBITDAnon-GAAP | $31.2 million | – | – |
| FY26 EBITDAnon-GAAP | $164.9 million | – | – |
| Q4 FY26 EBITDA Marginnon-GAAP | 13.8% | – | – |
| FY26 EBITDA Marginnon-GAAP | 18.9% | – | – |
| Q4 FY26 Adjusted Gross Profitnon-GAAP | $111.9 million | – | – |
| FY26 Adjusted Gross Profitnon-GAAP | $437.8 million | – | – |
| Q4 FY26 Adjusted Gross Marginnon-GAAP | 49.7% | – | – |
| FY26 Adjusted Gross Marginnon-GAAP | 50.3% | – | – |
| Q4 FY26 Adjusted Operating Incomenon-GAAP | $39.1 million | – | – |
| FY26 Adjusted Operating Incomenon-GAAP | $153.9 million | – | – |
| Q4 FY26 Adjusted Operating Marginnon-GAAP | 17.4% | – | – |
| FY26 Adjusted Operating Marginnon-GAAP | 17.7% | – | – |
| Q4 FY26 Adjusted EBITDAnon-GAAP | $45.4 million | – | – |
| FY26 Adjusted EBITDAnon-GAAP | $177.8 million | – | – |
| Q4 FY26 Adjusted EBITDA Marginnon-GAAP | 20.2% | – | – |
| FY26 Adjusted EBITDA Marginnon-GAAP | 20.4% | – | – |
| Q4 FY26 Adjusted Net Incomenon-GAAP | $18.7 million | – | – |
| FY26 Adjusted Net Incomenon-GAAP | $70.2 million | – | – |
| Q4 FY26 Adjusted Earnings Per Sharenon-GAAP | $0.09 | – | – |
| FY26 Adjusted Earnings Per Sharenon-GAAP | $0.32 | – | – |
| Q4 FY26 Domestic revenueother | $110.3 million | – | (2.0)% |
| FY26 Domestic revenueother | $425.1 million | – | (4.7)% |
| Q4 FY26 International revenueother | $115.0 million | – | 1.8% |
| FY26 International revenueother | $445.3 million | – | (0.8)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q4 FY26 Food SafetyCore Food Safety revenue growth increased 5.8% on a year-over-year basis, with continued strong growth in Indicator Testing and Culture Media and Bacterial and General Sanitation. | $166.8 million | – | 3.1% |
| FY26 Food SafetyNot stated. | $641.1 million | – | 0.5% |
| Q4 FY26 Animal SafetyCore Animal Safety revenue increased 0.5% on a year-over-year basis; the Company resolved the majority of supply related challenges, which had resulted in product shortages. | $58.5 million | over 7% | (8.2)% |
| FY26 Animal SafetyNot stated. | $229.3 million | – | (10.6)% |
| Q4 FY26 Food Safety: Natural Toxins & AllergensNot stated. | $19.2 million | – | 3.8% |
| FY26 Food Safety: Natural Toxins & AllergensNot stated. | $77.5 million | – | 0.6% |
| Q4 FY26 Food Safety: Bacterial & General SanitationThe Company reported continued strong growth. | $46.7 million | – | 9.9% |
| FY26 Food Safety: Bacterial & General SanitationNot stated. | $175.4 million | – | 6.4% |
| Q4 FY26 Food Safety: Indicator Testing, Culture MediaThe Company reported continued strong growth. | $86.8 million | – | 9.5% |
| FY26 Food Safety: Indicator Testing, Culture MediaNot stated. | $332.7 million | – | 6.6% |
| Q4 FY26 Food Safety: Rodent Control, Insect Control & DisinfectantsNot stated. | $3.9 million | – | (65.5)% |
| FY26 Food Safety: Rodent Control, Insect Control & DisinfectantsNot stated. | $18.2 million | – | (61.3)% |
| Q4 FY26 Food Safety: Genomics ServicesNot stated. | $6.6 million | – | 4.8% |
| FY26 Food Safety: Genomics ServicesNot stated. | $24.6 million | – | 5.1% |
| Q4 FY26 Food Safety: OtherNot stated. | $3.6 million | – | (7.7)% |
| FY26 Food Safety: OtherNot stated. | $12.7 million | – | (7.3)% |
| Q4 FY26 Animal Safety: Life SciencesNot stated. | $1.8 million | – | 12.5% |
| FY26 Animal Safety: Life SciencesNot stated. | $6.6 million | – | 1.5% |
| Q4 FY26 Animal Safety: Veterinary Instruments & DisposablesNot stated. | $15.8 million | – | (1.9)% |
| FY26 Animal Safety: Veterinary Instruments & DisposablesNot stated. | $56.9 million | – | (7.5)% |
| Q4 FY26 Animal Safety: Animal Care & OtherNot stated. | $7.0 million | – | (12.5)% |
| FY26 Animal Safety: Animal Care & OtherNot stated. | $29.3 million | – | (15.6)% |
| Q4 FY26 Animal Safety: Rodent Control, Insect Control & DisinfectantsNot stated. | $16.7 million | – | (22.3)% |
| FY26 Animal Safety: Rodent Control, Insect Control & DisinfectantsNot stated. | $68.9 million | – | (21.8)% |
| Q4 FY26 Animal Safety: Genomics ServicesNot stated. | $17.2 million | – | 4.2% |
| FY26 Animal Safety: Genomics ServicesNot stated. | $67.6 million | – | 2.7% |
FY 2027 and FY27Q1 outlook
- Revenue$880 - $885 million
- NoteFY 2027 Adjusted EBITDA: $180 - $182 million
- NoteFY27Q1 Revenue: $207-209 million
- NoteFY27Q1 Adjusted EBITDA: Approximately $37 million
- NoteFY 2027 guidance includes an estimate of $92 million of revenue and $13 million in adjusted EBITDA associated with the Company’s Genomics division.
- NoteThe guidance implies core growth of approximately 3% and assumes a 1% negative impact from currency based upon current exchange rates.
What drove it
- Core revenue increased by 4.3% in the fourth quarter, excluding the impacts of foreign currency translation, divestitures completed and product lines discontinued in the last 12 months.
- Food Safety core revenue growth increased 5.8% on a year-over-year basis, supported by Indicator Testing and Culture Media and Bacterial and General Sanitation.
- Gross-margin and adjusted gross-margin improvements were driven by favorable mix benefits and benefits from pricing changes.
- Adjusted EBITDA margins benefited from first-quarter cost saving initiatives and improvements in gross margins.
- The Company is launching a global go-to-market strategy and enterprise-wide solutions-based selling model.
Concerns
- Total fourth-quarter revenue declined (0.1%) and full-year revenue declined (2.7%).
- Animal Safety revenue declined (8.2%) in the fourth quarter and (10.6%) for the full year.
- Food Safety Rodent Control, Insect Control & Disinfectants revenue declined (65.5%) in the fourth quarter and (61.3%) for the full year.
- Domestic revenue declined (2.0%) in the fourth quarter and (4.7%) for the full year.
- The ACCC and NZCC moved their reviews of the proposed genomics divestiture into the second phase of review.
What to watch
- Manufacture of sellable Petrifilm product and the planned multi-quarter manufacturing transition beginning in November 2026.
- Completion of the first fully validated single kit unit expected by the end of August 2026.
- Closing of the global Genomics business sale to Zoetis Inc. by the end of the first half of fiscal year 2027.
- Management's future guidance update to reflect the sale of the Genomics business.
- Revenue and profitability improvements anticipated throughout fiscal year 2027 as the Company executes sales and operational initiatives.
Balance sheet and cash flow
- Fourth-quarter 2026 cash flow from operations of $30.2 million.
- Fourth-quarter 2026 free cash flow of $26.2 million.
- The Company anticipates total proceeds of $160 million and net proceeds following taxes and closing costs of approximately $140 million from the sale of its global Genomics business.
- The Company plans to use the proceeds from the transaction primarily for debt reduction.
Analysis
Neogen closed fiscal 2026 with fourth-quarter revenue of $225.3 million, down (0.1%) from the prior-year period, while core revenue increased by 4.3%. The gap between reported and core growth reflects the exclusions the company applies for foreign currency translation, divestitures and discontinued product lines. Full-year revenue was $870.4 million, down (2.7%), with core growth of 1.9%.
Food Safety supplied the quarter's reported growth, with revenue of $166.8 million, up 3.1%, and core growth of 5.8%. Indicator Testing and Culture Media grew 9.5%, while Bacterial and General Sanitation grew 9.9%. Animal Safety revenue was $58.5 million, down (8.2%), although core revenue increased 0.5% and the company said segment revenue increased by over 7% sequentially as it resolved the majority of supply-related challenges.
Profitability improved substantially from the prior-year quarter. Gross margin was 47.8%, compared with 41.2%, and adjusted gross margin was 49.7%, compared with 46.4%, driven by favorable mix benefits and pricing changes. Adjusted EBITDA was $45.4 million with a 20.2% margin, compared with $40.6 million and an 18.0% margin. The company reported a net loss of $11.3 million, or $(0.05) per diluted share, while adjusted net income was $18.7 million, or $0.09 per diluted share.
Cash flow from operations was $30.2 million and free cash flow was $26.2 million in the fourth quarter. Neogen expects to complete the Genomics sale by the end of the first half of fiscal year 2027, with anticipated total proceeds of $160 million and net proceeds following taxes and closing costs of approximately $140 million, primarily for debt reduction. Regulatory review remains active, with the ACCC and NZCC moving into second-phase reviews.
FY 2027 guidance calls for revenue of $880 - $885 million and adjusted EBITDA of $180 - $182 million, including an estimate of $92 million of revenue and $13 million in adjusted EBITDA associated with Genomics. FY27Q1 guidance calls for revenue of $207-209 million and adjusted EBITDA of Approximately $37 million. Management cited seasonality and mix changes as typical first-quarter pressures and anticipates improvements in overall revenue and profitability through fiscal year 2027.
Management, verbatim
We ended fiscal year 2026 with significant momentum and have a number of initiatives underway to further enhance our commercial efforts and the way we approach customers and our core markets. Fiscal year 2027 will be a year of disciplined execution and investment in core areas as we look to drive high-impact innovation and operational efficiency through additive technology and improved process. Ultimately, our goal is to exit FY27 positioned for enhanced future growth and profitability.
Mike Nassif, Neogen’s President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook, so no comparison of reported results with prior guidance is available.
- Quarterly sequential comparisons for total revenue, income statement metrics, product categories, domestic revenue and international revenue, except Animal Safety revenue increased by over 7% sequentially.
- Cash balance, debt balance and liquidity figures.
- Capital-return figures, including share repurchases and dividends.
- GAAP net income guidance, forward gross-margin guidance, forward operating-expense guidance and forward tax-rate guidance.
- Forward-looking reconciliation of Adjusted EBITDA to forecasted net income. The company stated it cannot provide this reconciliation without unreasonable efforts.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) reporting Neogen’s fiscal Q4 and full fiscal year 2026 financial results and providing FY27 guidance.
Ticker impact
Neogen filed an 8-K with FY26 results and provided FY27 revenue and Adjusted EBITDA guidance, including Petrifilm manufacturing transition timing.
Moderate positive bias for the next trading session as guidance and operational milestones reduce uncertainty, though Animal Safety weakness and FY26 revenue decline may cap upside.
The filing includes multiple quantified financial metrics (revenue, adjusted EBITDA, margins) and explicit operational timing (validated Petrifilm SKU by end of Aug 2026, multi-quarter transition beginning Nov 2026) plus FY27 guidance, which are actionable for positioning.
Market effects
Food safety and animal health suppliers may see read-through on demand durability in Indicator Testing and Culture Media versus weaker Rodent/Insect categories.
International revenue was roughly flat to slightly up in FY26, suggesting global demand resilience rather than purely domestic strength.
Operational execution on key product lines (Petrifilm) can influence confidence in supply continuity for lab testing workflows.
Counterpoint
Despite core growth and margin improvement, total FY26 revenue declined and Animal Safety revenue fell year over year, implying the market may focus on whether FY27 guidance offsets segment softness.
Key entities
- companyNeogen Corporation
Reports FY26 Q4 and full-year results, provides FY27 guidance, and outlines Petrifilm manufacturing transition timing.
- productPetrifilm
Company expects to manufacture sellable product and begin a multi-quarter manufacturing transition starting November 2026.
