Neogen Corporation (NEOG) Q1 2026 Earnings Report

Neogen reported Q1 2026 revenue of $209.2 million, up 0.3% on a core basis, with a GAAP gross margin of 34.4% and an adjusted EBITDA of $35.5 million (16.9% margin). Operating income was negative $15.98 million, reflecting ongoing costs of portfolio execution and higher tariff costs that temporarily weighed on gross margins. Net income stood at $36.34 million, aided by a divestiture-related net gain and other items, yielding an annualized view that supports a reaffirmed full-year guidance. Management signaled a disciplined turnaround playbook focused on top-line growth, cost base right-sizing, reinvigorated innovation, and balance-sheet deleveraging. In addition to the prior year’s divestiture of the Cleaners and Disinfectants business, Neogen is pursuing a portfolio optimization stance (including genomics) to sharpen end-market exposure toward higher-growth, higher-margin opportunities while maintaining a broad product portfolio in food safety and animal safety.

Key near-term actions include: (i) a roughly $20 million annualized cost-reduction program via ~10% headcount reduction and non-labor reductions; (ii) accelerating SNOP discipline to reduce excess working capital and inventory write-offs; (iii) expanding commercial leadership (Chief Commercial Officer role) and prioritizing high-impact product lines (e.g., PetriFilm) and higher-growth markets (notably the U.S.). Management expects the benefits of these actions to flow through in H2 fiscal 2026, supporting a margin recovery alongside revenue growth from core, high-margin product lines. The Q1 results were described as “in line with expectations,” with seasonality and one-time divestiture dynamics contributing to the quarterly delta. The company reaffirmed its full-year guidance and emphasized ongoing portfolio review, with a commitment to transparent updates in early 2026.