Revenue growth remains in a contractionary phase, evidenced by a 4.4% year-over-year decline in 2026Q3 alongside a compressed gross margin of 46.9%.
| Metric | TTM | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 | May'96 |
|---|
| Sales/Revenue | 870.54M | 894.66M | 924.22M | 822.45M | 527.16M | 468.46M | 418.17M | 414.19M | 397.93M | 358.28M | 321.27M | 283.07M | 247.41M | 207.53M | 184.05M | 172.68M | 140.51M | 118.72M | 102.42M | 86.14M | 72.43M | 62.76M | 55.5M | 46.49M | 41.1M | 34.9M | 23.51M | 22.2M | 18.5M | 15.3M | 12.5M |
| Revenue Growth % | -3.91% | -3.2% | 12.37% | 56.02% | 12.53% | 12.03% | 0.96% | 4.09% | 11.07% | 11.52% | 13.5% | 14.42% | 19.22% | 12.76% | 6.58% | 22.9% | 18.35% | 15.92% | 18.9% | 18.92% | 15.42% | 13.08% | 19.38% | 13.12% | 17.77% | 48.41% | 5.91% | 20% | 20.91% | 22.4% | 6.84% |
| Cost of Goods Sold | 500.03M | 473.29M | 461.59M | 416.49M | 284.15M | 253.4M | 221.89M | 222.27M | 211.66M | 189.35M | 168.21M | 143.39M | 124.81M | 98.03M | 91.62M | 84.89M | 67.53M | 59.29M | 49.19M | 41.58M | 35.43M | 32.15M | 27.99M | 21.76M | 20.2M | 17.16M | 9.91M | 8.6M | 7.2M | 5.6M | 5M |
| COGS % of Revenue | - | 52.9% | 49.94% | 50.64% | 53.9% | 54.09% | 53.06% | 53.66% | 53.19% | 52.85% | 52.36% | 50.65% | 50.45% | 47.24% | 49.78% | 49.16% | 48.06% | 49.94% | 48.02% | 48.27% | 48.91% | 51.23% | 50.43% | 46.81% | 49.14% | 49.17% | 42.17% | 38.74% | 38.92% | 36.6% | 40% |
| Gross Profit | 370.51M | 421.38M | 462.63M | 405.95M | 243.01M | 215.06M | 196.28M | 191.92M | 186.27M | 168.92M | 153.06M | 139.69M | 122.6M | 109.49M | 92.42M | 87.79M | 72.97M | 59.43M | 53.23M | 44.56M | 37.01M | 30.6M | 27.51M | 24.73M | 20.9M | 17.74M | 13.6M | 13.6M | 11.3M | 9.7M | 7.5M |
| Gross Margin % | 42.56% | 47.1% | 50.06% | 49.36% | 46.1% | 45.91% | 46.94% | 46.34% | 46.81% | 47.15% | 47.64% | 49.35% | 49.55% | 52.76% | 50.22% | 50.84% | 51.94% | 50.06% | 51.98% | 51.73% | 51.09% | 48.77% | 49.57% | 53.19% | 50.86% | 50.83% | 57.83% | 61.26% | 61.08% | 63.4% | 60% |
| Gross Profit Growth % | - | -8.92% | 13.96% | 67.05% | 13% | 9.57% | 2.27% | 3.03% | 10.27% | 10.36% | 9.58% | 13.94% | 11.97% | 18.47% | 5.28% | 20.3% | 22.79% | 11.65% | 19.46% | 20.42% | 20.92% | 11.25% | 11.26% | 18.3% | 17.83% | 30.45% | -0.01% | 20.35% | 16.49% | 29.33% | 7.14% |
| Operating Expenses | 408.42M | 411.96M | 385.21M | 368.44M | 184.4M | 140.89M | 128.76M | 123.83M | 116.08M | 103.98M | 96.68M | 86.57M | 79.21M | 68.79M | 58.69M | 51.96M | 46.1M | 38.95M | 35.21M | 31.06M | 26.2M | 21.83M | 19.97M | 17.94M | 15.4M | 13.47M | 11.23M | 11M | 9.7M | 8.3M | 7M |
| OpEx % of Revenue | - | 46.05% | 41.68% | 44.8% | 34.98% | 30.07% | 30.79% | 29.9% | 29.17% | 29.02% | 30.09% | 30.58% | 32.02% | 33.15% | 31.89% | 30.09% | 32.81% | 32.8% | 34.38% | 36.06% | 36.17% | 34.79% | 35.98% | 38.59% | 37.47% | 38.61% | 47.78% | 49.55% | 52.43% | 54.25% | 56% |
| Selling, General & Admin | 411.74M | 401.96M | 382.76M | 342.4M | 167.35M | 124.64M | 114.01M | 111.02M | 105.22M | 93.59M | 86.79M | 76.99M | 70.88M | 61.01M | 52.05M | 45.13M | 39.84M | 34.39M | 31.57M | 27.76M | 23.21M | 19.11M | 17.07M | 15.03M | 13.15M | 11.63M | 8.69M | 8.5M | 7.6M | 6.4M | 5.3M |
| SG&A % of Revenue | - | 44.93% | 41.41% | 41.63% | 31.74% | 26.61% | 27.26% | 26.8% | 26.44% | 26.12% | 27.01% | 27.2% | 28.65% | 29.4% | 28.28% | 26.14% | 28.35% | 28.97% | 30.83% | 32.23% | 32.05% | 30.44% | 30.77% | 32.32% | 32% | 33.34% | 36.96% | 38.29% | 41.08% | 41.83% | 42.4% |
| Research & Development | 19.8M | 21.09M | 22.48M | 26.04M | 17.05M | 16.25M | 14.75M | 12.8M | 10.86M | 10.38M | 9.89M | 9.58M | 8.33M | 7.78M | 6.64M | 6.83M | 6.26M | 4.55M | 3.64M | 3.29M | 2.99M | 2.73M | 2.89M | 2.91M | 2.25M | 1.84M | 1.6M | 1.6M | 1.4M | 1.3M | 1.2M |
| R&D % of Revenue | - | 2.36% | 2.43% | 3.17% | 3.23% | 3.47% | 3.53% | 3.09% | 2.73% | 2.9% | 3.08% | 3.38% | 3.37% | 3.75% | 3.61% | 3.95% | 4.45% | 3.84% | 3.55% | 3.83% | 4.13% | 4.35% | 5.21% | 6.27% | 5.48% | 5.27% | 6.8% | 7.21% | 7.57% | 8.5% | 9.6% |
| Other Operating Expenses | -1000K | -9.04M | -20.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 946K | 900K | 700K | 600K | 500K |
| Operating Income | -37.91M | 9.42M | 77.43M | 37.52M | 58.62M | 74.17M | 67.52M | 68.09M | 70.19M | 64.94M | 56.39M | 53.12M | 43.39M | 40.71M | 33.74M | 35.84M | 26.88M | 20.49M | 18.02M | 13.5M | 10.8M | 8.77M | 7.54M | 6.79M | 5.5M | 4.26M | 2.36M | 2.6M | 1.6M | 1.4M | 500K |
| Operating Margin % | -4.35% | 1.05% | 8.38% | 4.56% | 11.12% | 15.83% | 16.15% | 16.44% | 17.64% | 18.13% | 17.55% | 18.76% | 17.54% | 19.61% | 18.33% | 20.75% | 19.13% | 17.26% | 17.59% | 15.68% | 14.92% | 13.97% | 13.59% | 14.6% | 13.38% | 12.22% | 10.05% | 11.71% | 8.65% | 9.15% | 4% |
| Operating Income Growth % | - | -87.83% | 106.39% | -36% | -20.97% | 9.84% | -0.84% | -2.99% | 8.08% | 15.18% | 6.15% | 22.42% | 6.6% | 20.65% | -5.85% | 33.32% | 31.19% | 13.7% | 33.43% | 24.98% | 23.22% | 16.27% | 11.16% | 23.36% | 28.96% | 80.49% | -9.12% | 62.5% | 14.29% | 180% | -16.67% |
| EBITDA | 79.23M | 135.09M | 198.65M | 125.89M | 82.31M | 95.21M | 85.92M | 85.72M | 87.25M | 79.64M | 68.57M | 63.77M | 52.57M | 48.12M | 39.91M | 41.16M | 31.31M | 24.38M | 21.54M | 16.34M | 13.22M | 10.47M | 8.94M | 7.92M | 6.57M | 5.57M | 3.31M | 3.5M | 2.3M | 2M | 1M |
| EBITDA Margin % | 9.1% | 15.1% | 21.49% | 15.31% | 15.61% | 20.32% | 20.55% | 20.7% | 21.93% | 22.23% | 21.34% | 22.53% | 21.25% | 23.19% | 21.69% | 23.84% | 22.29% | 20.53% | 21.03% | 18.97% | 18.25% | 16.69% | 16.12% | 17.04% | 15.99% | 15.95% | 14.07% | 15.77% | 12.43% | 13.07% | 8% |
| EBITDA Growth % | -54.3% | -32% | 57.8% | 52.94% | -13.55% | 10.81% | 0.23% | -1.76% | 9.56% | 16.14% | 7.53% | 21.3% | 9.26% | 20.56% | -3.04% | 31.46% | 28.45% | 13.2% | 31.76% | 23.61% | 26.26% | 17.08% | 12.91% | 20.54% | 18.03% | 68.24% | -5.46% | 52.17% | 15% | 100% | -9.09% |
| D&A (Non-Cash Add-back) | 117.14M | 125.67M | 121.23M | 88.38M | 23.69M | 21.04M | 18.4M | 17.62M | 17.06M | 14.69M | 12.18M | 10.65M | 9.18M | 7.41M | 6.17M | 5.33M | 4.43M | 3.89M | 3.52M | 2.84M | 2.42M | 1.7M | 1.4M | 1.14M | 1.07M | 1.3M | 946K | 900K | 700K | 600K | 500K |
| EBIT | -565.74M | -1.06B | 61.37M | 33.92M | 60.21M | 75.27M | 72.31M | 72.96M | 73.47M | 66.67M | 55.51M | 52.08M | 43.03M | 41.14M | 33.96M | 35.24M | 27.32M | 21.62M | 18.5M | 13.89M | 11.13M | 9M | 7.54M | 6.79M | 5.5M | 4.26M | 2.36M | 2.58M | 1.59M | 1.4M | 500K |
| Net Interest Income | -60.16M | -68.51M | -67.03M | -52.8M | 1.27M | 1.61M | 5.99M | 4.68M | 2.04M | 838K | 322K | 228K | 115K | 144K | 107K | 95K | 81K | 248K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.15M | 3.11M | 6.36M | 3.17M | 1.34M | 1.69M | 5.99M | 4.68M | 2.04M | 838K | 322K | 228K | 115K | 144K | 107K | 95K | 81K | 248K | 442M | 0 | 0 | 0 | 0 | 98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 62.32M | 71.62M | 73.39M | 55.96M | 72K | 78K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -590.15M | -1.14B | -91.73M | -59.56M | 1.59M | 1.1M | 4.78M | 4.87M | 3.27M | 1.73M | -873K | -1.04M | -360K | 435K | 224K | -596K | 442K | 1.14M | 479K | 371K | 46K | 147K | 132K | 488K | 460K | 605K | 1.92M | 100K | 700K | 500K | -500K |
| Pretax Income | -628.06M | -1.13B | -14.3M | -22.04M | 60.21M | 75.27M | 72.31M | 72.96M | 73.47M | 66.67M | 55.51M | 52.08M | 43.03M | 41.14M | 33.96M | 35.24M | 27.32M | 21.62M | 18.5M | 13.88M | 12.09M | 8.92M | 7.67M | 7.27M | 5.96M | 4.87M | 4.28M | 2.7M | 2.3M | 1.9M | 0 |
| Pretax Margin % | -72.15% | -126.65% | -1.55% | -2.68% | 11.42% | 16.07% | 17.29% | 17.61% | 18.46% | 18.61% | 17.28% | 18.4% | 17.39% | 19.82% | 18.45% | 20.41% | 19.44% | 18.21% | 18.06% | 16.11% | 16.69% | 14.21% | 13.83% | 15.64% | 14.5% | 13.96% | 18.22% | 12.16% | 12.43% | 12.42% | - |
| Income Tax | -19.28M | -41.07M | -4.88M | 828K | 11.9M | 14.39M | 12.83M | 12.78M | 10.25M | 22.7M | 18.98M | 18.5M | 15M | 14.1M | 11.45M | 12.4M | 9.8M | 7.75M | 6.4M | 4.75M | 4.15M | 3M | 2.58M | 2.49M | 2.02M | 1.7M | 1.21M | 400K | 100K | 100K | 700K |
| Effective Tax Rate % | 3.07% | 3.62% | 34.14% | -3.76% | 19.77% | 19.11% | 17.74% | 17.52% | 13.95% | 34.05% | 34.18% | 35.53% | 34.86% | 34.27% | 33.71% | 35.19% | 35.87% | 35.84% | 34.6% | 34.23% | 34.32% | 33.65% | 33.55% | 34.18% | 33.81% | 34.91% | 28.24% | 14.81% | 4.35% | 5.26% | - |
| Net Income | -608.78M | -1.09B | -9.42M | -22.87M | 48.31M | 60.88M | 59.48M | 60.18M | 63.15M | 43.79M | 36.56M | 33.53M | 28.16M | 27.19M | 22.51M | 22.84M | 17.52M | 13.87M | 12.1M | 9.13M | 7.94M | 5.92M | 5.1M | 4.79M | 3.94M | 3.17M | 3.07M | 2.3M | 2.2M | 1.8M | -200K |
| Net Margin % | -69.93% | -122.06% | -1.02% | -2.78% | 9.16% | 13% | 14.22% | 14.53% | 15.87% | 12.22% | 11.38% | 11.84% | 11.38% | 13.1% | 12.23% | 13.23% | 12.47% | 11.69% | 11.81% | 10.59% | 10.96% | 9.43% | 9.19% | 10.3% | 9.6% | 9.08% | 13.07% | 10.36% | 11.89% | 11.76% | -1.6% |
| Net Income Growth % | -25.45% | -11491.59% | 58.81% | -147.34% | -20.65% | 2.37% | -1.16% | -4.7% | 44.19% | 19.77% | 9.06% | 19.06% | 3.56% | 20.77% | -1.43% | 30.35% | 26.29% | 14.68% | 32.58% | 14.91% | 34.23% | 16.02% | 6.52% | 21.34% | 24.45% | 3.12% | 33.65% | 4.55% | 22.22% | 1000% | -128.57% |
| Net Income (Continuing) | -608.78M | -1.09B | -9.42M | -22.87M | 48.31M | 60.88M | 59.48M | 60.18M | 63.22M | 43.97M | 36.54M | 33.58M | 28.03M | 27.04M | 22.39M | 22.8M | 17.52M | 13.87M | 12.1M | 9.13M | 7.94M | 5.92M | 5.1M | 4.79M | 3.94M | 3.17M | 3.07M | 2.3M | 2.2M | 1.8M | -200K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 143K | -37K | -11K | -61K | 66K | 215K | 333K | 388K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.80 | -5.03 | -0.04 | -0.12 | 0.45 | 0.57 | 0.56 | 0.57 | 0.60 | 0.43 | 0.36 | 0.34 | 0.28 | 0.28 | 0.24 | 0.24 | 0.19 | 0.15 | 0.14 | 0.11 | 0.09 | 0.07 | 0.06 | 0.06 | 0.06 | 0.05 | 0.05 | 0.03 | 0.03 | 0.03 | -0.00 |
| EPS Growth % | -25.5% | -11463.22% | 63.75% | -126.67% | -21.05% | 1.79% | -1.75% | -5% | 39.53% | 19.44% | 5.88% | 21.43% | 0% | 16.67% | 0% | 26.32% | 26.67% | 7.14% | 27.27% | 19.31% | 41.85% | 14.64% | 1.98% | 0.91% | 14.79% | 3.9% | 40.43% | 5.79% | 9.51% | - | -127.07% |
| EPS (Basic) | - | -5.03 | -0.04 | -0.12 | 0.45 | 0.57 | 0.57 | 0.58 | 0.61 | 0.43 | 0.36 | 0.34 | 0.29 | 0.28 | 0.24 | 0.25 | 0.19 | 0.16 | 0.14 | 0.11 | 0.09 | 0.07 | 0.06 | 0.06 | 0.06 | 0.05 | 0.05 | 0.03 | 0.03 | 0.03 | -0.01 |
| Diluted Shares Outstanding | 217.7M | 216.89M | 216.48M | 188.88M | 108.02M | 107.12M | 105.72M | 104.85M | 104.37M | 102.33M | 101M | 99.85M | 99.38M | 97.31M | 96.08M | 95.16M | 92.36M | 90.48M | 89.99M | 84.97M | 86.11M | 91.02M | 89.98M | 86.17M | 71.58M | 66.04M | 66.5M | 69.93M | 70.71M | 63.28M | 56.22M |
| Basic Shares Outstanding | 217.7M | 216.89M | 216.48M | 188.88M | 107.68M | 106.5M | 105.1M | 103.78M | 103.47M | 101.86M | 100.18M | 99.01M | 97.95M | 96.22M | 94.48M | 92.03M | 89.46M | 87.14M | 86.84M | 82.75M | 84.08M | 86.58M | 87.41M | 84.48M | 67.24M | 64.84M | 66.5M | 69.93M | 68.75M | 63.28M | 36M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Integration-driven margin erosion
According to the most recent quarterly filings, NEOG's revenue has experienced a consistent decline, with the 2026Q3 period showing a 4.4% year-over-year contraction, suggesting that the company is struggling to achieve organic growth following the integration of the 3M Food Safety business unit.
The persistent negative growth rates across the last ten quarters indicate that the company's core diagnostic offerings are facing significant headwinds or potential customer churn. Investors should monitor whether this trend reflects a structural decline in demand or temporary disruption caused by the ongoing consolidation of acquired operations.
As reported in financial statements, NEOG's gross margin has fluctuated significantly, dropping from a peak of 50.9% in 2024Q2 to 46.9% in 2026Q3, which highlights the difficulty in maintaining premium pricing power while managing the complex cost structure of the combined diagnostic entity.
The volatility in gross margins suggests that the company is struggling to pass through increased input costs to its food safety customers. This compression warrants further investigation into whether the current manufacturing footprint is optimized for the scale required by the post-merger product portfolio.
Based on the provided income statement data, NEOG's operating income has shifted into negative territory, with 2026Q3 reporting an operating margin of -1.6%, indicating that the company is currently failing to scale its overhead efficiently relative to its gross profit generation post-merger.
The inability to maintain positive operating income suggests that SG&A expenses remain disproportionately high compared to the current revenue base. This implies that the expected synergies from the 3M transaction have yet to materialize in a way that benefits the bottom line.
As evidenced by the extreme net margin volatility, including a -122.06% TTM figure, NEOG's reported net income is heavily distorted by non-recurring charges and amortization, making it difficult for investors to assess the underlying profitability of the business without adjusting for these significant accounting items.
The massive swings in net income, such as the -612.2M loss in 2025Q4, appear to be driven by one-time merger-related accounting adjustments rather than operational performance. Analysts should focus on normalized metrics to determine if the core business can eventually generate sustainable, positive cash flow.
Based on the reported figures, the persistent negative EPS and revenue contraction suggest that the short-seller thesis regarding the 3M Food Safety integration may be gaining traction, as the company has yet to demonstrate a clear path to restoring historical profitability levels.
The risk remains that the acquired business was under-invested, necessitating higher-than-anticipated R&D and SG&A spending that could permanently impair the company's margin profile. Investors should be cautious of the assumption that current losses are merely temporary, as the lack of revenue growth suggests deeper operational challenges.
Quick answers to the most common questions about buying NEOG stock.
For fiscal year 2025, Neogen Corporation (NEOG) reported total revenue of $894.7M. This represents a 7057.3% increase compared to $12.5M in 1996.
Neogen Corporation (NEOG) reported a net loss of $1.09B for the fiscal year ending 2025.
Neogen Corporation (NEOG) reported an operating income of $9.4M, resulting in an operating profit margin of 1.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Neogen Corporation (NEOG) generated $421.4M in gross profit for the year, representing a gross profit margin of 47.1%. This demonstrates the company's core pricing power and production efficiency.