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Aug 31
Neogen Q1 2026 Earnings Report
Neogen reported Q1 2026 earnings with a GAAP profit driven by a one-time gain, though adjusted earnings declined due to operating challenges.
Key Takeaways
Neogen posted a net income of $36.3 million for Q1 2026, primarily due to a non-cash gain from the divestiture of its Cleaners & Disinfectants business. However, core operations showed weakness, with a drop in both adjusted EPS and revenue.
Reported GAAP net income of $36.3M, supported by a $76.4M gain from divestiture
Adjusted net income declined to $9.4M due to lower operating income
Revenue fell to $209.2M, with headwinds from divestitures and product discontinuations
Reaffirmed full-year guidance and implemented restructuring actions to reduce costs
Neogen
Neogen
Neogen Revenue by Segment
Revenue by Segment
Food Safety Revenue
CapyFin.comAnimal Safety Revenue
CapyFin.com Forward Guidance
Neogen reaffirmed its FY26 outlook, expecting revenues between $820M and $840M and Adjusted EBITDA between $165M and $175M.
Positive Outlook
- Full-year revenue guidance reaffirmed
- Adjusted EBITDA guidance maintained
- Debt reduced by $100M from divestiture proceeds
- Strong growth in Bacterial & Sanitation and Genomics product lines
- Operational changes expected to drive long-term margin expansion
Challenges Ahead
- Adjusted EPS declined from prior year
- Gross margin fell due to integration costs and tariffs
- Revenue decline driven by divestitures and product line discontinuations
- Higher operating expenses reduced profitability
- Restructuring involved headcount reductions
Revenue & Expenses
Visualization of income flow from segment revenue to net income