NEOG Q4 Deep Dive: Operational Improvements and New Leadership Drive Upbeat Outlook

Stock Story

Life sciences company Neogen reported Q4 CY2025 results topping the market’s revenue expectations, but sales fell by 2.8% year on year to $224.7 million. The company’s full-year revenue guidance of $850 million at the midpoint came in 2.8% above analysts’ estimates. Its non-GAAP profit of $0.10 per share was 50% above analysts’ consensus estimates.

Neogen (NEOG) Q4 CY2025 Highlights:

Revenue: $224.7 million vs analyst estimates of $209.7 million (2.8% year-on-year decline, 7.2% beat)
Adjusted EPS: $0.10 vs analyst estimates of $0.07 (50% beat)
Adjusted EBITDA: $48.75 million vs analyst estimates of $39.17 million (21.7% margin, 24.5% beat)
The company lifted its revenue guidance for the full year to $850 million at the midpoint from $830 million, a 2.4% increase
EBITDA guidance for the full year is $175 million at the midpoint, above analyst estimates of $165.8 million
Operating Margin: -2.4%, up from -198% in the same quarter last year
Market Capitalization: $2.11 billion

StockStory’s Take

Neogen’s Q4 results were met with a strong positive market reaction, reflecting the company’s return to positive core growth and substantial margin improvement. Management attributed the quarter’s performance to operational changes, including a sharper focus on cost structure and commercial execution. CEO Mike Nassif emphasized the shift to a process-oriented approach in the commercial organization, stating, “We are implementing a rigorous process-oriented approach to commercial excellence.” The addition of new leadership and targeted product focus, especially in food safety and sample collection, also contributed to the sequential margin expansion.

Looking ahead, Neogen’s raised full-year guidance is driven by continued emphasis on operational efficiency and a disciplined approach to resource allocation. Management believes that ongoing cost reduction measures, optimization of the sample collection product line, and a renewed sales culture will support further improvement. CFO Brian Rigsby noted that the company’s cautious outlook factors in both lingering macroeconomic challenges and the need for the newly formed management team to fully integrate, stating, “We just want to make sure that we take the right approach as it relates to how we manage the guide.”

Key Insights from Management’s Remarks

Management credited cost actions, commercial process changes, and leadership additions as central to the quarter’s improvement, while highlighting execution on key product lines and the early impact of their transformation strategy.

Leadership transformation underway: Multiple senior hires, including a new CFO, chief commercial officer, and heads of key business units, were brought in from established diagnostics firms to drive process discipline and sales execution.
Commercial process overhaul: Weekly sales forecasting and cross-functional reviews replaced the previous monthly cadence, aimed at improving accuracy and ensuring the broader organization supports frontline commercial teams. CEO Mike Nassif described this as fostering a more customer-centric culture.
Product line focus: Food safety led core growth, especially in indicator testing, culture media, and pathogen detection. Management credited targeted initiatives in petri film and sample collection, as well as strong recovery in major distributor volumes, for the improved results.
Cost structure improvements: A set of cost actions implemented in the quarter are expected to deliver around $20 million in annualized savings, supporting margin expansion and operational flexibility.
Portfolio simplification: The completion of the Cleaners and Disinfectants divestiture and planned sale of the genomics business are intended to streamline the company, with proceeds prioritized for debt reduction and margin enhancement.

Drivers of Future Performance

Neogen expects its next phase of performance to be shaped by operational efficiency gains, new commercial leadership, and ongoing macroeconomic challenges.

Operational efficiency focus: Management is prioritizing improvements in sample collection production, inventory management, and broader cost discipline. The sample collection product line is expected to return to positive profitability in the back half of the year, with further operational enhancements targeted.
Commercial execution and sales process: The new sales leadership is driving a shift toward solutions-based selling in food safety, aiming to increase customer retention and cross-selling. This is supported by enhanced commercial planning and more frequent forecasting, which management believes will improve predictability and growth.
Macroeconomic and end-market uncertainty: Industry-wide challenges, including lower food production volumes, plant closures, and inflationary pressures, remain headwinds. Management is taking a cautious approach to guidance, while noting early signs that some of these pressures may begin to ease as the year progresses.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will watch for (1) further progress in operational efficiency, particularly in sample collection and inventory management, (2) successful integration and impact of new commercial leadership on sales execution and customer retention, and (3) the completion and effects of the genomics business divestiture. Monitoring end-market demand trends and the pace of recovery in food and animal safety segments will also be essential for assessing Neogen’s ongoing transformation.

Neogen currently trades at $9.72, up from $7.38 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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Alibaba, Costco among market cap stock movers on Thursday

Investing.com

NVIDIA

-3.44%

Silicon Motion Technology

MoonLake Immunotherapeutics

-4.88%

Thursday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Alibaba (BABA) and Costco (COST) are rallying, while stocks like AbbVie (ABBV) and Applovin (APP) are falling. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers (Market Cap:$200 billion USD or higher)

Alibaba (BABA) +5.19%
Costco Whsl Corp New (COST); Costco reports 8.5% increase in December sales to $29.86 billion +4.77%
Exxon Mobil (XOM) +3.85%
Home Depot (HD) +3.63%
AbbVie Inc (ABBV); Abbvie: Not In Discussions With Revolution Medicines - Reuters -3.57%
Applovin (APP) -3.58%
Micron Tech (MU) -3.59%
General Electric (GE) -3.64%
Intel Corp (INTC) -3.69%
Applied Matls Inc (AMAT) -3.48%

Large-Cap Stock Movers (Market Cap:$10-$200 billion USD)

Kratos Defense & (KTOS); Northrop Grumman wins Marine Corps uncrewed aircraft contract with Kratos +13.99%
Bloom Energy Corp (BE) +13.5%
Karman Holdings (KRMN); Karman Space & Defense to acquire maritime defense specialists for $220 million +9.67%
Regencell Bioscience Holdings (RGC) -18.12%
Ciena (CIEN) -14.28%
Acuity Brands Inc (AYI); Acuity Brands beats Q1 earnings estimates as sales rise 20% -13.61%
Lumentum Holdings Inc (LITE) -11.57%
ICON Plc (ICLR); Truist Securities downgrades ICON stock to Hold on growth concerns -9.88%
Seagate Technology (STX) -9.34%
Carpenter Technology Corp (CRS) -9.01%

Mid-Cap Stock Movers (Market Cap:$2-$10 billion USD)

Ondas (ONDS) +14.45%
Pbf Energy Inc (PBF) +14.07%
21Vianet Group (VNET) +11.33%
GDS Holdings Ltd (GDS) +10.35%
Caesars Entertainment Corp (CZR); Susquehanna upgrades Caesars Entertainment stock to Positive on earnings outlook +9.59%
Applied Opt (AAOI) -13.84%
Teleflex Inc (TFX) -11.41%
Centrus Energy (LEU) -11.02%
Silicon Motion Te (SIMO) -10.01%
Mudrick Capital A (HYMC) -10.12%

Small-Cap Stock Movers (Market Cap:$300 million -$2 billion USD)

Imara Inc (ELVN); Enliven reports positive initial phase 1b data for ELVN-001 in CML +50.74%
Neogen Corp (NEOG); Neogen stock soars 20% as earnings beat drives investor optimism +29.96%
Helix Acquisition Corp (MLTX); FDA confirms MoonLake’s path to HS drug approval without additional trials +28.08%
Babcock & Wilcox Enterprises (BW) +27.09%
Rich Sparkle Holdings (ANPA) +25.53%
Fluidigm Corp (LAB) +20.7%
CF Acquisition V (SATL) +20.63%
Aeluma (ALMU) +17.82%
Immuneering (IMRX); Immuneering reports 64% survival rate in pancreatic cancer trial -41.18%
CorMedix Inc (CRMD); CorMedix reports $127 million Q4 revenue, provides 2026 outlook -33.35%

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Why Is Neogen (NEOG) Stock Rocketing Higher Today

Stock Story

Neogen

+1.07%

What Happened?

Shares of life sciences company Neogen jumped 27.6% in the morning session after the company reported fourth-quarter results that far surpassed Wall Street's expectations and raised its financial forecast for the full year.

The life sciences company posted adjusted earnings per share of $0.10, easily beating the analyst consensus of $0.07. Revenue for the quarter came in at $224.7 million, also topping the anticipated $209.7 million. Despite sales falling 2.8% year on year, investors were encouraged by the significant beats on both the top and bottom lines. Looking ahead, Neogen raised its full-year revenue guidance to a midpoint of $850 million, ahead of Wall Street estimates. The company also increased its outlook for adjusted EBITDA to approximately $175 million, signaling confidence in its future performance.

What Is The Market Telling Us

Neogen’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. But moves this big are rare even for Neogen and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 7 months ago when the stock dropped 24% on the news that the company provided updated Q4 fiscal 2025 outlook that pointed to temporary headwinds impacting gross margin, though sales are expected to remain in line with the previous estimates. The company also anticipated a nearly $5 million impact from tariffs and announced strategic divestitures, which are expected to weigh heavily on growth and profits.

Neogen is up 36.2% since the beginning of the year, but at $9.54 per share, it is still trading 27% below its 52-week high of $13.07 from January 2025. Investors who bought $1,000 worth of Neogen’s shares 5 years ago would now be looking at an investment worth $227.43.

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Neogen Up Nearly 28%, on Pace for Largest Percent Increase Since August 1993 — Data Talk

Dow Jones Newswires

Neogen

+1.07%

Neogen Corp (NEOG) is currently at $9.44, up $2.06 or 27.93%

Would be highest close since March 12, 2025, when it closed at $9.48
On pace for largest percent increase since Aug. 17, 1993, when it rose 47.62%
Currently up four of the past five days
Up 35.07% month-to-date
Up 35.07% year-to-date
Down 80.47% from its all-time closing high of $48.34 on April 20, 2021
Down 27.76% from 52 weeks ago (Jan. 8, 2025), when it closed at $13.07
Down 27.76% from its 52-week closing high of $13.07 on Jan. 8, 2025
Up 115.07% from its 52-week closing low of $4.39 on April 17, 2025
Traded as high as $10.24; highest intraday level since March 10, 2025, when it hit $10.65
Up 38.75% at today's intraday high; largest intraday percent increase since Aug. 17, 1993, when it rose as much as 47.62%

All data as of 10:40:33 AM ET

Source: Dow Jones Market Data, FactSet

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Costco, Alibaba among market cap stock movers on Thursday

Investing.com

Advanced Micro Devices

-16.52%

Kratos Defense & Security Solutions

Thursday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Alibaba (BABA) and Costco (COST) are rallying, while stocks like Applied Materials (AMAT) and Intel (INTC) are falling. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers (Market Cap $200B+)

Alibaba (BABA); 5.39%
Costco (COST); Costco reports 8.5% increase in December sales to $29.86 billion; +4.97%
United Tech (RTX); +3.42%
Philip Morris Intl (PM); +2.15%
Oracle (ORCL); -2.88%
Avago Technologies (AVGO); -2.92%
Lam Research Corp (LRCX); -2.24%
Intel Corp (INTC); -2.4%
Micron Tech (MU); -3.54%
Applied Matls Inc (AMAT); -3.5%

Large-Cap Stock Movers (Market Cap $10B-$200B)

Kratos Defense (KTOS); Kratos Defense supports Trump’s defense reinvestment policy; +17.56%
Bloom Energy Corp (BE); +14.39%
Huntington Ingalls Industries Inc (HII); +8.12%
Northrop Grumman (NOC); +7.0%
AeroVironment (AVAV); +9.06%
Karman Holdings (KRMN); Karman Space & Defense to acquire maritime defense specialists for $220 million; +9.86%
Regencell Bioscience Holdings (RGC); -14.3%
Acuity Brands Inc (AYI); Acuity Brands beats Q1 earnings estimates as sales rise 20%; -12.84%
Lumentum Holdings Inc (LITE); -11.54%
ICON Plc (ICLR); Truist Securities downgrades ICON stock to Hold on growth concerns; -6.79%

Mid-Cap Stock Movers (Market Cap $2B-$10B)

Ondas (ONDS); +17.49%
Applied Blockchain (APLD); +15.46%
Serve Robotics (SERV); +14.4%
Astronics Corp (ATRO); +10.16%
Omnicell (OMCL); KeyBanc upgrades Omnicell stock rating to Overweight on potential "super-cycle; +6.47%
Inflection Point Acquisition (LUNR); +5.18%
Mobileye Global (MBLY); -6.41%
Arcus Biosciences Inc (RCUS); Morgan Stanley downgrades Arcus Biosciences stock on balanced risk/reward; -8.21%
Centrus Energy (LEU); -8.97%
Teleflex Inc (TFX); -11.05%
Applied Opt (AAOI); -12.23%

Small-Cap Stock Movers (Market Cap $300M-$2B)

Imara Inc (ELVN); Enliven reports positive initial phase 1b data for ELVN-001 in CML; +59.04%
Helix Acquisition Corp (MLTX); FDA confirms MoonLake’s path to HS drug approval without additional trials; +29.09%
Neogen Corp (NEOG); Neogen stock soars 20% as earnings beat drives investor optimism; +27.92%
HUYA Inc (; +21.22%
Babcock & Wilcox Enterprises (BW); +17.23%
Serve Robotics (SERV); +14.4%
Phathom Pharmaceuticals Inc (PHAT); Phathom Pharmaceuticals prices $130 million public offering; -12.89%
Membership Collective Group (SHCO); -16.03%
CorMedix Inc (CRMD); CorMedix reports $127 million Q4 revenue, provides 2026 outlook; -28.38%
Immuneering (IMRX); Immuneering reports 64% survival rate in pancreatic cancer trial; -36.68%

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Neogen (NASDAQ:NEOG) Beats Expectations in Strong Q4 CY2025, Stock Jumps 19.8%

Stock Story

Neogen

+1.07%

Life sciences company Neogen reported Q4 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 2.8% year on year to $224.7 million. The company’s full-year revenue guidance of $850 million at the midpoint came in 3% above analysts’ estimates. Its non-GAAP profit of $0.10 per share was 50% above analysts’ consensus estimates.

Neogen (NEOG) Q4 CY2025 Highlights:

Revenue: $224.7 million vs analyst estimates of $209.7 million (2.8% year-on-year decline, 7.2% beat)
Adjusted EPS: $0.10 vs analyst estimates of $0.07 (50% beat)
Adjusted EBITDA: $48.75 million vs analyst estimates of $39.17 million (21.7% margin, 24.5% beat)
The company lifted its revenue guidance for the full year to $850 million at the midpoint from $830 million, a 2.4% increase
EBITDA guidance for the full year is $175 million at the midpoint, above analyst estimates of $165.8 million
Operating Margin: -2.4%, up from -198% in the same quarter last year
Free Cash Flow Margin: 3.5%, down from 10% in the same quarter last year
Market Capitalization: $1.60 billion

Company Overview

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Neogen’s sales grew at a solid 15.2% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Neogen’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.1% over the last two years.

This quarter, Neogen’s revenue fell by 2.8% year on year to $224.7 million but beat Wall Street’s estimates by 7.2%.

Looking ahead, sell-side analysts expect revenue to decline by 5.3% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds.

Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking. Go here for access to our full report.

Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Neogen’s high expenses have contributed to an average operating margin of negative 23.2% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

Looking at the trend in its profitability, Neogen’s operating margin decreased by 85.2 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 79.2 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

Neogen Trailing 12-Month Operating Margin (GAAP)

Neogen’s operating margin was negative 2.4% this quarter.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Neogen, its EPS declined by 12.6% annually over the last five years while its revenue grew by 15.2%. This tells us the company became less profitable on a per-share basis as it expanded.

We can take a deeper look into Neogen’s earnings to better understand the drivers of its performance. As we mentioned earlier, Neogen’s operating margin expanded this quarter but declined by 85.2 percentage points over the last five years. Its share count also grew by 104%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q4, Neogen reported adjusted EPS of $0.10, down from $0.11 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Neogen’s full-year EPS of $0.29 to grow 34.5%.

Key Takeaways from Neogen’s Q4 Results

This was a convincing 'beat and raise' quarter. It was good to see Neogen beat analysts’ revenue and EPS expectations handily this quarter. We were also excited its revenue guidance was raised and now exceed Wall Street’s estimates. Zooming out, we think this quarter featured many important positives and was very impressive. The stock traded up 19.8% to $8.84 immediately after reporting.

Sure, Neogen had a solid quarter, but if we look at the bigger picture, is this stock a buy? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.

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Tesco, RPM, Acuity Brands, and more set to report earnings Thursday

Investing.com

Advanced Micro Devices

Earnings season continues, below we highlight companies expected to report earnings the next trading day so you can prepare for the market action. Leading the charge on Thursday are several notable firms including Tesco, RPM International, Acuity Brands, Commercial Metals, and WD-40 Company, representing sectors ranging from retail to industrial manufacturing and consumer goods.

Earnings Before the Open:

• Tesco PLC (TSCDY) - Estimated revenue: $22.93B

• RPM Intl Inc ( - Estimated EPS: $1.43, Estimated revenue: $1.94B

• Acuity Brands Inc (AYI) - Estimated EPS: $4.58, Estimated revenue: $1.14B

• Commercial Metals Comp (CMC) - Estimated EPS: $1.56, Estimated revenue: $2.06B

• Sodexo PK (SDXAY) - No estimates available

• Neogen Corp (NEOG) - Estimated EPS: $0.032, Estimated revenue: $208.12M

• Simplicity (SMPL) - Estimated EPS: $0.3559, Estimated revenue: $335.93M

• Lindsay Corporation (LNN) - Estimated EPS: $1.53, Estimated revenue: $172.42M

• Helen of Troy Ltd (HELE) - Estimated EPS: $1.69, Estimated revenue: $502.42M

• Northern Technolo (NTIC) - Estimated EPS: $0.02, Estimated revenue: $20.7M

Earnings After the Close:

• WD-40 Company (WDFC) - Estimated EPS: $1.45, Estimated revenue: $161.2M

• Greenbrier Companies Inc (GBX) - Estimated EPS: $0.87, Estimated revenue: $675.25M

• Aehr Test Systems (AEHR) - Estimated EPS: -$0.0287, Estimated revenue: $12.42M

• Simulations Plus (SLP) - Estimated EPS: $0.1886, Estimated revenue: $17.97M

Be sure to check back daily for updates and insights into the earnings season and real-time results at Investing.com’s Earnings Calendar and Latest Headlines. Do you want to trade the earnings of the biggest companies like a pro? Then get InvestingPro now and access over 1000 metrics that will give you a significant advantage in the shark tank that is Wall Street. Click here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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