Highlights

  • Neogen shares rose over 31% following its second-quarter earnings release
  • Revenue and adjusted earnings exceeded consensus estimates despite year-on-year declines
  • The company raised full-year revenue and adjusted EBITDA guidance

Shares of healthcare and food safety company Neogen (NASDAQ:NEOG) advanced sharply on Thursday, climbing more than 31% in a single session (closing at USD 9.70) after the company released its second-quarter fiscal 2026 earnings before market open. The move followed results that surpassed market expectations and an upward revision to full-year guidance.

Second-Quarter Financial Performance

For the second quarter of fiscal 2026, Neogen reported revenue of USD 224.7 million, representing a decline of nearly 3% compared with the same period last year. The company cited the impact of divestitures and discontinued product lines as key contributors to the lower top-line figure.

On a non-GAAP basis, net income declined to USD 22.6 million, or USD 0.10 per share, from USD 24.4 million in the prior-year quarter. The company attributed the decrease in adjusted profitability to lower operating income during the period.

Despite the year-on-year declines, both revenue and earnings exceeded consensus estimates. Analysts had expected revenue of just over USD 208 million, while adjusted earnings expectations stood at approximately USD 0.03 per share.

Updated Full-Year Outlook

Alongside the quarterly results, Neogen revised its full-year fiscal 2026 guidance upward. Management now expects full-year revenue to range between USD 845 million and USD 855 million, compared with its earlier outlook of USD 820 million to USD 840 million.

The company also updated its adjusted EBITDA outlook, now forecasting approximately USD 175 million for the fiscal year. Previously, Neogen had guided for a range of USD 165 million to USD 175 million. The company did not provide a forecast for net income.

Market Focus

The combination of earnings that exceeded expectations and an upward revision to full-year guidance appeared to drive market activity in the stock following the announcement. Trading volumes increased as market participants assessed the implications of the updated outlook alongside recent portfolio changes and discontinued operations.