Neogen Stock Spikes 23% After Earnings. Cost Cuts Will Include Layoffs.

The food safety company disclosed an unspecified number of layoffs. (Dreamstime)

Key Points

• Neogen’s adjusted earnings of 4 cents per share meet expectations, with revenue of $209.2 million exceeding forecasts.
• The company reaffirms its fiscal 2026 forecast and announces companywide layoffs to improve margins.
• Neogen shares rise Thursday, following a 52% decline in the stock this year.

Shares of Neogen were rising sharply Thursday after the food safety company met earnings expectations for its fiscal first quarter and revealed companywide layoffs.

Neogen posted adjusted earnings of 4 cents a share, in line with analysts’ consensus estimates. Revenue totaled $209.2 million, ahead of Wall Street’s call for $203.1 million. The company also reaffirmed its fiscal 2026 forecast and disclosed an unspecified number of layoffs designed in part to expand margins.

Neogen shares were up 23% to $7.14 on Thursday. The stock has slumped heavily this year, falling 52% through Wednesday’s close.

“Recent performance has been hampered by execution challenges which we are tackling head-on with a sharpened emphasis on commercial excellence, renewed innovation and a leaner cost structure,” said CEO Mike Nassif. “We recently implemented companywide cost initiatives, which included the difficult decision to reduce headcount across the organization.”

Write to Nate Wolf at nate.wolf@barrons.com