Earnings call transcript: Neogen beats Q1 2026 forecasts, shares swing higher

Neogen Corp. beat first-quarter fiscal 2027 expectations with adjusted earnings of $0.08 per share and revenue of $222.8 million. Wall Street had anticipated adjusted earnings of $0.05 and revenue of $204.7 million. The company's core revenue grew by 8.1% year-over-year, marking the fifth consecutive quarter of core growth. The stock traded from $11.96 to $13.12 after hours, a 9.7% increase from the prior close of $11.96.

Neogen's revenue and adjusted EBITDA guidance were both raised for fiscal 2027. The first Petrifilm SKU received full validation, a crucial step in the company's manufacturing transition. The company's first-quarter performance demonstrated strong execution and a more disciplined commercial model. Food safety remained the larger business, with $163.2 million in revenue and 8.1% core growth.

Pathogen detection and animal safety saw double-digit growth, while animal safety revenue increased by 8.0% on a core basis. Adjusted EBITDA margin expanded to 18.7%, up 170 basis points from the previous year. Free cash flow improved by $4.7 million, or $18 million more than a year earlier. The company's guidance for fiscal 2027 revenue was raised to $885 million to $890 million, and adjusted EBITDA guidance to $181 million to $183 million.