Neogen Corp. (NASDAQ:NEOG) reported third-quarter results on Thursday that came in ahead of analyst forecasts, supported by strong performance in its food safety business.
Shares of the company rose 1.16% in premarket trading following the announcement.
The food safety and animal health company posted adjusted earnings per share of $0.09, surpassing the consensus estimate of $0.06 by $0.03.
Quarterly revenue totaled $211.2 million, exceeding analysts’ expectations of $204.49 million, although it declined 4.4% compared with $221.0 million in the same quarter last year.
Growth was led by the Food Safety segment, which recorded 4.0% core revenue growth and continued the momentum seen in the previous quarter. Regional expansion was strongest in Latin America and Europe. In contrast, the Animal Safety segment saw core revenue decline 8.7%, largely due to supply challenges involving third-party vendors.
Neogen also raised its fiscal 2026 full-year revenue outlook, now expecting revenue between $857 million and $860 million. The midpoint of $858.5 million is above the consensus estimate of $850.9 million. Previously, the company had guided for revenue in the range of $845 million to $855 million.
Adjusted EBITDA for the quarter reached $48.2 million, with a margin of 22.8%, representing a 110 basis point improvement compared with the second quarter despite lower revenue.
The improved margins were driven by disciplined cost management, with adjusted operating expenses declining 9% sequentially. The reduction reflects the full impact of a workforce reduction implemented during the first quarter.
Adjusted net income for the quarter totaled $19.4 million. Neogen reiterated its full-year adjusted EBITDA guidance of approximately $175 million and said it expects to generate positive free cash flow in fiscal 2026.
The company also confirmed that its Petrifilm manufacturing transition remains on schedule for November 2027, with early product validation tests delivering encouraging results.