Shares of Neogen Corp (NEOG) are surging 17.35% in pre-market trading on Thursday following the release of its better-than-expected first-quarter earnings report for fiscal year 2026. The food and animal safety products company demonstrated robust financial performance, surpassing analyst estimates and providing an optimistic outlook for the full fiscal year.
Neogen reported Q1 revenue of $209.189 million, significantly beating the analyst consensus estimate of $204.2 million. While this represents a 3.6% year-over-year decline, primarily due to divestitures and discontinued product lines, the company's core revenue showed a slight increase of 0.3%. Neogen's earnings per share came in at $0.17, with adjusted EPS of $0.04 meeting analysts' expectations.
Looking ahead, Neogen provided a positive outlook for the full fiscal year 2026, projecting revenue between $820 million and $840 million. This guidance surpasses current analyst estimates and has likely contributed to the stock's significant pre-market rally. Additionally, the company expects adjusted EBITDA to fall within the range of $165 million to $175 million for the fiscal year.
Neogen's CEO and President, Mike Nassif, expressed optimism about the company's future, stating, "I see tremendous opportunity ahead to leverage Neogen's strong, longstanding leadership in food and animal safety." The company has also implemented cost-cutting initiatives, including a headcount reduction across the organization, aimed at improving operational efficiency and profitability.
As the market opens, investors will be closely watching to see if Neogen can maintain this momentum throughout the trading session. The strong quarterly results and positive outlook appear to have reinvigorated confidence in the company's growth prospects, despite recent challenges in the broader market.
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