Neogen Corporation

What they do

Neogen develops and markets diagnostic test kits and complementary products for food safety (detecting pathogens, allergens, toxins) and animal safety (veterinary instruments, pharmaceuticals, vaccines, parasiticides, and genomics testing). Products are sold to food producers, processors, laboratories, veterinarians, and livestock producers worldwide. The company divested its global Cleaners and Disinfectants business in July 2025.

Revenue drivers

• Food Safety – Bacterial & General Sanitation — Generated $175.4M in FY2026, up 6.4% year-over-year; includes diagnostic tests for pathogens and sanitation indicators.
• Food Safety – Indicator Testing, Culture Media — Largest product line, $332.7M in FY2026, up 6.6%, includes culture media and indicator tests.
• Food Safety – Natural Toxins & Allergens — Generated $77.5M in FY2026, up 0.6%; tests for mycotoxins, histamine, and allergens.
• Animal Safety — FY2026 revenue was $229.3M (implied), down year-over-year; includes veterinary instruments, pharmaceuticals, vaccines, and parasiticides.

Recent performance

Fiscal Q4 2026 revenue was $225.3 million, flat versus prior year, with core growth of 4.3%. Full-year FY2026 revenue declined 2.7% to $870.4 million; net loss was $7.9 million (EPS -$0.04) versus a $1.09 billion loss in FY2025. Food Safety Q4 core growth was 5.8%, the highest since FY2023, driven by bacterial sanitation and culture media. Animal Safety Q4 revenue fell 8.2% but grew 7% sequentially as supply issues improved. Operating cash flow for FY2026 was $83.2 million.

Strategy

Management's stated strategy is to drive high-impact innovation, operational efficiency, and disciplined execution. Priorities include completing the Petrifilm manufacturing transition (expected in FY2027), improving supplier quality programs, and resolving production inefficiencies in sample collection products. The company also focuses on increasing international sales, introducing new products, and pursuing acquisitions. After divesting the Cleaners and Disinfectants business, the company has announced plans to divest the genomics business.

Risks

• Petrifilm transition delay — Failure to complete the Petrifilm manufacturing transition from 3M on schedule could reduce benefits and cause duplicative costs.
• Tariffs and trade policy — Increasing tariffs raise costs on imported materials and negatively impact international sales of U.S.-manufactured products.
• Supply chain and quality issues — Third-party supplier quality and manufacturing issues, partly tied to tariffs, hurt Animal Safety revenue in Q3 FY2026.
• Inventory write-offs — Elevated inventory write-offs due to expirations at international locations have hurt operating results in FY2025 and FY2026.

Outlook

Management expects continued improvement in production inefficiencies in FY2027 and plans to begin the Petrifilm manufacturing transition in November 2026. They anticipate gradually increasing food production and growth in the Food Safety market. For FY2027, the company provided revenue and Adjusted EBITDA guidance, aiming to exit FY2027 positioned for enhanced growth and profitability.