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what it is
Neogen sells food contamination tests and animal health products to farms, vets, and food processors.
how it gets paid
Last year Neogen made $895M in revenue. Food Safety diagnostic kits was the main engine at $381M, or 43% of sales.
why growth slowed
Revenue fell 3.2% last year. The 46.5% gross margin matters most because margin repair.
what just happened
Latest quarter revenue hit $434M and EPS came in at $0.09, ahead of a $0.07 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
25.0x trailing p/e — priced about right
6.0% return on capital — nothing to write home about
xvary composite: 46/100 — below average
What they do
Neogen sells food contamination tests and animal health products to farms, vets, and food processors.
Neogen wins because food and animal safety buyers hate changing vendors when audits are on the line. Food Safety is 71% of fiscal 2025 revenue, and those diagnostic kits sit inside your customers’ daily workflow. Switching costs (changing suppliers) → retraining, revalidating, and re-auditing → so what: once you are in, leaving is annoying and risky.
How they make money
$895M
annual revenue · their business grew -3.2% last year
Food Safety diagnostic kits
$381M
Food Safety related products
$255M
Veterinary instruments
$91M
Pharmaceuticals and vaccines
$104M
Disinfectants and cleaners
$64M
The products that matter
core diagnostics franchise
Diagnostic Test Kits
$434M snapshot revenue base
This is the only product line the current page quantifies directly. Revenue fell 51.5% from a year ago, so stability matters more than storytelling.
core
food safety testing tools
Food Safety Solutions
revenue split not disclosed here
Food safety is central to why the company exists, but this snapshot does not break out the dollars by segment. When the mix is hidden, you should care more about margin and estimate revisions.
mix matters
animal safety product suite
Animal Safety Solutions
4.0% return on capital
Breadth helps only if it earns decent returns. Right now, 4.0% return on capital says this part of the story still needs better execution to matter for valuation.
execution bet
Key numbers
-118.6%
operating margin
Operating margin → profit after running the business → so what: Neogen is still burning through its own economics despite nearly $895M in annual revenue.
$895M
annual revenue
This is the current size of the business, and it fell 3.2% vs. prior year, which tells you growth is still a repair job.
$793M
long-term debt
Debt this large against a $2B market cap keeps pressure on execution because there is less room for another stumble.
$0.40
FY2027 EPS est.
That is the earnings target two fiscal years out, which shows how much of the bull case still lives in the future.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $793M (26% of capital)
- net profit margin 14.8% — keeps 15 cents of every dollar in revenue
- return on equity 6% — $0.06 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in NEOG 3 years ago → it's now worth $5,040.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Latest quarter revenue hit $434M and EPS came in at $0.09, ahead of a $0.07 estimate.
Revenue rose 93% vs. prior year in the latest quarter, and gross margin was 46.5%. Analysts also flagged better-than-expected fiscal second-quarter results and a raised full-year forecast.
$434M
revenue
$0.09
eps
46.5%
gross margin
the number that mattered
The 46.5% gross margin matters most because margin repair, not just revenue growth, is what has to drag this turnaround back into normal territory.
-
neogen delivered better-than-expected fiscal second-quarter results (period ended november 30th).the company reported adjusted earnings of $0.10 a share on revenues of $224.7 million, surpassing our estimates by $0.03 and about $15 million, respectively. much of the upside was generated within the food safety business, where performance benefited from higher demand for sample collection products and petrifilm. cost improvements and recently implemented strategic initiatives aimed at prioritizing higher-margin segments were also supportive of november-period comparisons.
-
leadership raised its full-year forecasts.neogen is now targeting fiscal 2026 revenues in the range of $845 million-$855 million and adjusted ebitda of approximately $175 million, versus its previous outlook of $820 million-$840 million and $165 million-$175 million. the revisions were motivated by the company's better-than-expected second-quarter results and accelerated progress across its transformation strategy. our current projections call for adjusted earnings of $0.30 a share in fiscal 2026, on revenues of $850 million.
-
we anticipate a return of top-line growth in fiscal 2027.recent revenue comparisons have been challenged by the impact of divestitures and discontinued product lines.
-
weaker volumes in certain end markets have also played a role.on a positive note, things should get a little easier next year, as impacts from divestitures and discontinuations lap and benefits from strategic initiatives gain further traction. operational improvements tied to the integration of petrifilm 20manufacturing and a renewed focus on higher-growth, solutions-based selling ought to provide additional firepower in fiscal 2027.
-
the stock's outlook rank has been has been reinstated.
source: company earnings report, 2026
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What could go wrong
the biggest risk here is a recovery story meeting hard reality: legal overhang, weak predictability, and a stock price already above the $8 long-term midpoint.
med
ongoing litigation
The company faces multiple class-action lawsuits, including cases in the eastern district of pennsylvania and the southern district of new york. Legal noise is manageable until it starts consuming management attention and cash.
With $793M in long-term debt and a 9.8% net margin, Neogen does not have unlimited room for extra costs.
med
the rebound may stay on paper
Fy2026 revenue estimates call for $850M against the current $434M base. If the business does not move toward that number, the recovery thesis starts looking like spreadsheet optimism.
That would pressure both the roughly 33x forward multiple and the $0.30 eps estimate at the same time.
med
multiple compression
You already have a stock at $10.01 with a 3–5 year target midpoint of $8. That gap means the market is giving management some benefit of the doubt right now.
If confidence fades, the share price can fall even if operations merely stabilize instead of improve.
The story works if margins recover fast. If they do not, 20% downside to $8 is already sitting in plain sight.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings update
The next report needs to make the $850M fy2026 revenue target look plausible, not aspirational. Last full review: updated feb 6, 2026.
trend
revenue recovery versus the $850M estimate
This is the main scoreboard now. If reported revenue stays stuck near the current $434M base, the thesis gets thinner fast.
risk
ongoing litigation
The lawsuits are not background noise. With $793M of long-term debt, extra legal expense matters more than it would at a cleaner balance sheet.
metric
earnings predictability
The score is 30/100. If that moves higher, the market can start trusting the recovery. If it falls, expect more volatility in estimates and sentiment.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts expect this to lag most stocks from here.
risk profile
average
stability score 3 — this is not a bunker stock, but it is not pure chaos either.
chart momentum
bottom 5%
technical score 5 — the chart says the market still needs proof before it trusts the story.
earnings predictability
30 / 100
Forecasting is harder here than at steadier businesses. That means more estimate risk for you.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 136 buyers vs. 176 sellers in 3q2025. total institutional holdings: 0.2B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$3
$13
$10
current price
$8
target midpoint · 20% from current · 3-5yr high: $13 (+30% · 7% ann'l return)
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