Neogen Corp. (NASDAQ:NEOG) stock rallied after the company reported better-than-expected first-quarter sales results.

First-quarter 2026 adjusted earnings came in at 4 cents per share, in line with the estimates.

Sales hovered $209.19 million; that’s down 3.6% year over year, exceeded the consensus of $204.16 million.

Gross margin: 45.4% in Q1 of fiscal 2026 compared to 48.4% a year ago, due to relocated production of sample collection products, as well as lower revenue and tariffs.

Excluding the integration costs, first-quarter gross margin was 49.5%.

First-quarter Adjusted EBITDA was $35.5 million, representing an Adjusted EBITDA Margin of 17.0% (a year ago, it was $43.7 million and a margin of 20.1%).

In a research note, William Blair analysts blamed “transient/integration-related issues.”

In theory, they explained, “things should improve from ...