Neogen Delivers Solid Core Growth Amidst Challenges

Neogen, a leading provider of innovative products and services to food safety and animal health markets, has reported solid core growth in its fiscal third quarter 2026 results. Despite facing several supplier challenges, the company's food safety segment continued to show strong growth, including continued expansion in the United States.

"We're happy to report that we delivered solid core growth in our food safety segment again this quarter, including continued growth in the United States," said Mike Nassif, CEO of Neogen. "Our growth in the quarter was consistent with current market dynamics, and this is an important milestone to achieve our goal of above-market growth."

Neogen's adjusted EBITDA margins improved to some of the highest levels in recent company history, at 22.8%, due to cost discipline. This achievement bodes well for the company's future as it looks to accelerate top-line growth in fiscal year 2027 and beyond.

However, Neogen encountered several supplier challenges stemming from third-party manufacturers that had a meaningful impact on its animal safety business. The company has implemented a more rigorous supplier qualification and review process to strengthen reliability going forward.

"While many of these issues were outside of our direct control, they don't meet the standards we've established as an organization," said Mike Nassif. "In response, we've implemented a more rigorous supplier qualification and review process to strengthen reliability going forward."

Neogen's transformation journey is focused on three major strategic initiatives: commercial prowess, high-impact innovation, and operational efficiency. The company is strengthening its sales and marketing engine by deploying an enhanced go-to-market strategy and introducing a global solutions-based selling model.

"We're building the foundation for true organic innovation for the first time at Neogen," said Mike Nassif. "This means identifying the products and technologies that can expand our addressable markets, advance our technology leadership and differentiation, and unlock new growth opportunities within our core channel."

Neogen's operational efficiency initiatives include advancing and scaling its S&OP process, completing the transition of its manufacturing operations, and refining its budgeting and forecasting processes. The company is already preparing for fiscal 2027 and pursuing technology enhancements and consolidation opportunities that can further streamline operations.