Neogen Narrows Losses Significantly, Raises 2026 Guidance Amid Market Shift

GasFeeLover · 2026-01-12T18:49:45+00:00

Neogen (NEOG) significantly improved its Q2 results, with a reduced net loss of $15.9 million. Adjusted net income was slightly down, but core revenue grew 2.9%. The company raised its fiscal year 2026 guidance, boosting investor confidence and shares by 19.4%.

GasFeeLover

2026-01-12 18:49:45

Abstract generation in progress

Neogen (NEOG) reported dramatically improved financial results for Q2, with the company’s net loss shrinking to $15.9 million ($0.07 per share) from a staggering $456.3 million loss ($2.10 per share) in the same quarter last year. This represents a substantial turnaround in the company’s financial trajectory.

Adjusted Profitability Shows Resilience

When examining adjusted net income, which filters out one-time charges, Neogen posted $22.6 million ($0.10 per share) in Q2, down slightly from $24.4 million ($0.11 per share) year-over-year. The company’s adjusted figures aligned closely with market expectations, as analysts had anticipated earnings of $0.07 per share before accounting for special items.

Revenue Performance Mixed But Core Business Strengthens

Total revenues declined 2.8% to $224.7 million versus $231.3 million in the prior-year quarter. However, the company’s core revenue segment painted a more optimistic picture, growing by 2.9%, indicating underlying business momentum despite top-line headwinds.

Full-Year Outlook Gets Boost

Looking ahead to fiscal year 2026, Neogen is raising its forward guidance. The company now anticipates revenues between $845 million and $855 million, with adjusted EBITDA projected at approximately $175 million. This upgraded outlook signals management confidence in the company’s strategic direction.

Stock Market Responds Positively

The market rewarded the improved operational trajectory. In pre-market trading on NasdaqGS, Neogen shares surged 19.4% to $8.81, reflecting investor optimism about the company’s recovery path and future prospects.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.