Neogen Reports 6.5% Revenue Growth in Q1 FY2027; Raises Full-Year Guidance

LANSING, MICHIGAN, 10 October 2026 — Neogen Corporation (NASDAQ: NEOG), a global provider of food-safety and animal-safety products and services, reported first-quarter fiscal 2027 revenue of $222.8 million, an increase of 6.5% from $209.2 million in the prior-year quarter. The company also raised its full-year revenue and adjusted EBITDA guidance, citing progress in commercial execution, operational improvements and stronger performance across its Food Safety and Animal Safety segments.

The results, announced on 6 October 2026, cover the three months ended 31 August 2026. They indicate improving operating profitability, although the company continued to report a GAAP net loss, and management cautioned that certain prior-year comparisons and customer-order timing contributed to reported core growth.

Financial performance: revenue and adjusted profitability improve

Neogen’s reported revenue increased by $13.6 million year over year. Core revenue growth, a non-GAAP measure that excludes foreign-exchange effects and the impact of acquisitions, divestitures and discontinued product lines, was 8.1%.

Source: Neogen’s 6 October 2026 earnings release. Percentages are calculated from reported figures and rounded. Adjusted measures are non-GAAP and should be considered alongside GAAP results.

The improvement in gross margin and adjusted EBITDA suggests better operating leverage and reduced integration-related costs. Neogen’s gross margin increased to 47.4%, while adjusted EBITDA rose to $41.6 million. Adjusted EBITDA margin improved by 170 basis points to 18.7%.

Adjusted net income increased to $17.5 million from $9.5 million, reflecting higher adjusted EBITDA and lower interest and income-tax expense. These adjusted measures exclude certain costs and other items and are not substitutes for GAAP earnings.

Animal Safety: revenue reaches $59.6 million

Neogen’s Animal Safety segment generated $59.6 million, up 4.2% from $57.1 million in Q1 FY2026. On a core basis, Animal Safety revenue increased 8.0%, after accounting for foreign exchange and portfolio changes.

The company highlighted strong growth in Veterinary Instruments & Consumables and Biosecurity Products, particularly insect-control products.

Animal Safety revenue by product category

Source: Neogen earnings release. Individual category growth rates are calculated from reported revenue and rounded

Veterinary Instruments & Consumables was the fastest-growing major Animal Safety category in the quarter, increasing by $2.2 million, or approximately 18.5%. The company also cited insect-control products as a principal contributor to biosecurity-related growth, although total Biosecurity Products revenue declined slightly year over year.

Implications for animal-health customers

Neogen’s Animal Safety portfolio includes products and services used in veterinary, livestock, animal-care and biosecurity settings. Growth in veterinary instruments and consumables may indicate stronger demand for diagnostic and clinical workflows, although the earnings release does not disclose unit volumes, pricing contributions or end-market demand by species.

The company’s insect-control products also sit within a broader animal-biosecurity context. Their commercial relevance depends on the specific target pest, approved use, customer requirements and the economics of effective pest management. The quarterly figures do not establish that a particular disease outbreak or livestock species drove the reported results.

Food Safety remains Neogen’s largest revenue contributor

Food Safety revenue reached $163.2 million, up 7.4% from $152.1 million in the prior-year quarter. Core growth was 8.1%.

The segment accounted for approximately 73.3% of Neogen’s total quarterly revenue, compared with approximately 26.7% from Animal Safety. The company’s overall financial performance therefore remains heavily influenced by Food Safety, even though its animal-health and livestock activities remain strategically relevant.

Neogen reported continued strength in Indicator Testing & Culture Media, including Petrifilm, and in Bacterial & General Sanitation products, including pathogen-detection solutions.

Source: Neogen earnings release. Growth rates are calculated from reported values and rounded.

Indicator Testing & Culture Media contributed the largest absolute revenue increase among the listed Food Safety categories, rising by $8.8 million. That growth is relevant to food manufacturers, laboratories and quality-assurance operations that use microbiological testing to monitor product hygiene and contamination risks.

For the animal-health industry, the segment’s performance also illustrates the commercial overlap between animal production, food processing and food-safety assurance. However, Food Safety revenue should not be counted as veterinary-product revenue.

Growth quality: reported results include timing and comparison effects

Although total revenue grew 6.5%, Neogen reported core revenue growth of 8.1%. Management said the core growth figure included an approximately three-percentage-point benefit associated with inventory adjustments at certain distributors in the prior-year quarter and the timing of customer orders in Q1 FY2027.

This qualification matters when assessing the durability of growth. A favourable comparison or the timing of orders can increase a quarterly growth rate without necessarily representing a comparable increase in underlying end-user demand.

The segment data nevertheless show 8.0% core growth in Animal Safety and 8.1% in Food Safety. Investors and industry observers should monitor subsequent quarters to determine how much of that performance is sustained through recurring customer demand, new products, pricing, distribution and geographic expansion.

Geographic performance: international revenue exceeds domestic sales

Neogen reported domestic revenue of $110.1 million and international revenue of $112.7 million.

International markets accounted for approximately 50.6% of quarterly revenue. Neogen reported growth across all global regions, including double-digit growth in Asia Pacific.

The company did not provide a detailed country-level breakdown in the headline results. The Asia Pacific statement is therefore a regional signal rather than evidence of a specific growth rate in India, China or another individual market.

For animal-health distributors and livestock-sector customers, the international revenue contribution reinforces Neogen’s exposure to markets with different regulatory requirements, animal-production systems, biosecurity needs and customer economics. Regional growth alone does not establish which species or product categories drove demand.

Petrifilm manufacturing transition: operational milestone approaching

Neogen said it remained on track to begin a planned multi-quarter manufacturing transition of Petrifilm products to its Lansing, Michigan, manufacturing site in November 2026.

The company reported that its first single-kit stock-keeping unit had completed full validation in August, demonstrating the ability to manufacture product meeting its required quality and performance standards.

The transition is an important operational milestone because manufacturing execution can affect product availability, cost structure, inventory and customer service. Neogen also reported that it was working to improve inventory optimisation, sales processes and customer-service systems.

The validation of one SKU is encouraging, but it should not be interpreted as proof that the entire transition is complete. The relevant indicators over coming quarters will include the progress of additional SKUs, manufacturing consistency, supply continuity and the level of duplicate production costs incurred during the transition.

Digital innovation: collaboration with Hinalea Imaging

Neogen also announced a strategic collaboration with and an equity investment in Hinalea Imaging Corp. to develop digital imaging solutions for food safety and quality inspection.

The collaboration is intended to advance applications of hyperspectral imaging that could automate aspects of food inspection and testing and help customers interpret results faster and more consistently.

Hyperspectral imaging captures information across multiple wavelengths and can potentially help identify characteristics not readily distinguishable through conventional visual inspection. Commercial utility depends on application-specific validation, measurement accuracy, integration into operating workflows and the economics of implementation.

The announcement indicates a broader digital-innovation strategy. However, it does not establish that a new imaging product has received regulatory approval, achieved widespread commercial deployment or generated material revenue.

Genomics business sale to Zoetis remains a strategic watchpoint

Neogen said it continued to work towards completing the previously announced sale of its global Genomics business to Zoetis for $160 million, subject to customary closing conditions and regulatory reviews. The company expected those reviews to conclude by the end of December 2026.

The transaction is relevant to the company’s portfolio composition and future reporting. Until completion, the proposed sale should be treated as pending rather than a completed divestiture.

The reported Genomics Services revenue within the quarterly segment tables also requires careful interpretation because the planned transaction had not yet closed. Investors should monitor the company’s filings for the final closing date, any changes to the timetable and the resulting effects on reported revenue and business mix.

Full-year FY2027 guidance raised

Following the first-quarter results, Neogen raised its FY2027 financial guidance.

The revised revenue range represents a $5 million increase at both the lower and upper ends of the previous range. Adjusted EBITDA guidance increased by $1 million at both ends.

Bottom line

Neogen delivered stronger revenue, adjusted profitability and Animal Safety core growth in Q1 FY2027, prompting an increase in full-year guidance. The results suggest progress in its operational improvement programme, but the sustainability of growth, the Petrifilm manufacturing transition and the pending Genomics divestiture remain central issues to monitor.