What Happened?
Shares of life sciences company Neogen (NASDAQ:NEOG) jumped 14.1% in the pre-market session after the company reported its third-quarter 2026 financial results and raised its full-year guidance for revenue and adjusted EBITDA.
According to a company press release, Neogen reported quarterly revenue of $222.8 million, up 6.5% year on year, supported by core growth of 8.1%. The company also delivered adjusted net income of $17.5 million, which amounted to adjusted earnings per share of $0.08, and raised its full-year guidance for revenue and adjusted EBITDA. The performance exceeded Wall Street expectations, with revenue beating analyst estimates of $208.3 million by 7% and adjusted earnings per share topping projections of $0.05 by 50%.
On the earnings call, Chief Financial Officer Bryan Riggsbee noted that performance was paced by an 11% increase in indicator testing and Petrifilm, while clarifying that core growth included an approximate 300-basis-point boost from customer order timing and distributor inventory comparisons. Chief Executive Mike Nassif emphasized that Neogen fully validated its first Petrifilm kit, achieving a key de-risking milestone ahead of its planned multi-quarter manufacturing transfer to Lansing in November.
Looking ahead, Neogen also lifted its full-year revenue forecast to $887.5 million at the midpoint, while its adjusted EBITDA outlook of $182 million at the midpoint came in above analyst estimates of $179.6 million. The upward revision to annual guidance alongside results that beat expectations signaled solid operational momentum, which helped drive positive investor sentiment.
After the initial pop, the shares cooled down to $11.79, down 1.7% from the previous close.
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What Is The Market Telling Us
Neogen’s shares are very volatile and have had 24 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 previous big move we wrote about was 8 days ago when the stock dropped 5.4% on the news that the U.S. Food and Drug Administration issued warning letters to the company following laboratory tests that uncovered fungal contamination in its veterinary product HYCOAT.
The FDA said tests identified multiple fungal species in Neogen Vet HYCOAT, a product marketed as sterile. The contamination caused severe joint infections in nearly 100 horses and resulted in at least 20 horse deaths. The incident represents the highest number of horse fatalities ever linked to a quality issue in an FDA-regulated veterinary product. The agency also issued a warning letter to Sciarra Aeromed in connection with the investigation.
Neogen is up 68.1% since the beginning of the year, but at $11.79 per share, it is still trading 15.7% below its 52-week high of $13.98 from September 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Neogen’s shares 5 years ago would now be looking at only $277.22.
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