Why Is Neogen (NEOG) Shares Soaring Today

Neogen Surges After Exceeding Expectations

Neogen (NASDAQ:NEOG), a company specializing in life sciences, saw its stock price soar by 27.6% during morning trading following the release of its fourth-quarter earnings, which significantly outperformed analyst forecasts. The company also raised its financial outlook for the remainder of the year.

For the quarter, Neogen reported adjusted earnings per share of $0.10, surpassing the consensus estimate of $0.07. Revenue reached $224.7 million, beating projections of $209.7 million. Although sales declined by 2.8% compared to the same period last year, investors responded positively to the strong performance on both revenue and earnings. Looking ahead, Neogen increased its full-year revenue guidance to a midpoint of $850 million, exceeding Wall Street’s expectations. The company also boosted its adjusted EBITDA forecast to around $175 million, reflecting optimism about its future growth.

Market Reaction and Stock Performance

Neogen’s stock is known for its volatility, having experienced 42 price swings greater than 5% over the past year. However, a jump of this magnitude is unusual, highlighting the significant impact of the latest earnings report on investor sentiment.

One of the most notable declines occurred seven months ago, when shares dropped 24% after Neogen updated its Q4 fiscal 2025 outlook, citing temporary challenges affecting gross margins. Despite these headwinds, sales were expected to remain consistent with prior forecasts. The company also projected a nearly $5 million hit from tariffs and announced plans for strategic divestitures, both of which were expected to put pressure on growth and profitability.

Since the start of the year, Neogen’s stock has climbed 36.2%. Still, at $9.54 per share, it remains 27% below its 52-week high of $13.07 set in January 2025. For perspective, a $1,000 investment in Neogen five years ago would now be valued at just $227.43.