Neogen Corp (NEOG) Beats Expectations Amid Leadership Change and Restructuring Efforts

We recently published 12 Best Healthcare Stocks to Buy Under $30. Neogen Corporation (NASDAQ:NEOG) is one of the best healthcare stocks.

Neogen Corporation (NASDAQ:NEOG), specializing in food and animal safety diagnostics, is currently undergoing a strategic transition amid operational challenges. As of August 2025, the company faced integration issues from past mergers and reported weaker Q3 2025 earnings, leading to lowered full-year guidance and an announced CEO departure later this year.

Despite these setbacks, Neogen Corporation (NASDAQ:NEOG) is divesting non-core operations to reduce debt and improve future growth prospects. Investors like Baron Funds view this restructuring as a temporary phase before a stronger rebound. The business operates mainly in Food Safety and Animal Safety, providing diagnostic kits for contaminants and veterinary products, reinforcing its role in global food and animal health.

A notable recent development is Neogen Corporation (NASDAQ:NEOG)’s August 2025 collaboration with enzyme design firm Biomatter, signaling a strategic move toward biotechnological innovation. Additionally, the company’s Q2 CY2025 results beat revenue expectations despite a 4.8% year-over-year sales decline, demonstrating some resilience in a difficult market environment.

While we acknowledge the risk and potential of NEOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NEOG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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