Neogen Corp (NASDAQ:NEOG) stock fell 10.91% (As on October 10, 7:58:32 AM UTC-4, Source: Google Finance) after the company misses earning expectations for the first quarter of FY26. The company’s Food Safety segment registered revenues of $152.1 million in the fiscal first quarter, marking a 4.6% decrease year over year. The segment’s strongest core revenue growth was in the Bacterial & General Sanitation product category, which benefited from higher sales in pathogen detection products.  Revenues from the Animal Safety segment totaled $57.1 million, down 0.8% year over year. The core revenue growth was led by Animal Care & Other, with higher sales of biologics and wound care products. On a global basis, the company’s Genomics business returned to positive core revenue growth, which was in the mid-single-digit range in the first quarter.

Moreover, in the first quarter of fiscal 2026, gross profit declined 9.5% year over year to $95 million. The gross margin contracted 296 basis points (bps) to 45.4% on a 2% increase in the cost of revenues. Neogen’s cash and cash equivalents at the end of the fiscal first quarter totaled $138.9 million compared with $129 million at the end of the fourth quarter of fiscal 2025. The company’s non-current liabilities included a total outstanding debt of $800 million and a committed borrowing headroom of $201.5 million.

NEOG in the first quarter of FY26 has reported the adjusted earnings per share of 4 cents, missing the analysts’ estimates for the adjusted earnings per share by 20%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 3.6 percent to $209.2 million in the first quarter of FY26, beating the analysts’ estimates for revenue by 2.96%.

Meanwhile, the company is tackling critical projects with urgency, advancing PetriFilm production integration, addressing sample collection inefficiencies through productivity enhancements, and optimizing inventory management with a robust SNOP process to reduce write-offs and streamline the supply chain. With respect to PetriFilm specifically, the company recently began initial product testing with the intent of demonstrating that the different steps of production are able to execute processes within the required parameters.

The company reaffirmed its projections for fiscal 2026, expecting revenues to be $820-$840 million. The Zacks Consensus Estimate is currently pegged at $818.3 million. Adjusted EBITDA is expected to be in the range of $165 million-$175 million. Capital expenditures are projected to be nearly $50 million.