Overview

* Neogen Q1 2026 revenue of $209.2 mln beats analyst expectations

* Adjusted Net Income for Q1 beats estimates, driven by operational adjustments

* Company completed divestiture and repaid $100 mln of debt

Outlook

* Company reaffirms FY2026 revenue guidance of $820 mln to $840 mln

* Neogen expects FY2026 adjusted EBITDA between $165 mln and $175 mln

* Capital expenditures for FY2026 expected to total approximately $50 mln

Result Drivers

* REVENUE DECLINE - Total revenue decreased 3.6% due to divestitures and discontinued product lines, with core revenue slightly up by 0.3%

* GROSS MARGIN IMPACT - Gross margin declined due to integration costs and lower revenue, but excluding these costs, margin was higher

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $209.18 $204.20

Revenue mln mln (4

Analysts

)

Q1 EPS $0.17

Q1 Beat $9.40 $6 mln

Adjusted mln (1

Net Analyst)

Income

Q1 Net $36.33

Income mln

Q1 Miss $35.50 $36.30

Adjusted mln mln (3

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

* Wall Street's median 12-month price target for Neogen Corp ( NEOG ) is $7.25, about 19.7% above its October 8 closing price of $5.82

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)