Neogen Corporation (NEOG) stock traded higher Thursday after the company outlined its fiscal 2031 growth and profitability targets at its 2026 Investor Day.

The company laid out ambitious long-term targets, including a 30% adjusted EBITDA margin and high-single-digit to low-double-digit revenue growth by fiscal 2031.

Neogen Sets FY2031 Targets

Neogen outlined a fiscal 2031 financial framework targeting high-single-digit to low-double-digit revenue growth, adjusted gross margin in the high-50% range and a 30% adjusted EBITDA margin.

The company also aims to reduce net leverage to below 2.5x.

Neogen's strategy centers on commercial execution, innovation, and operational efficiency, with management focused on sustaining profitable growth and strengthening its position in food safety.

The company plans to increase R&D spending by about 50% in fiscal 2027 and target R&D investment of roughly 5% of revenue by fiscal 2031. Neogen expects new product innovation to contribute $100 million in incremental revenue by fiscal 2031.

Innovation And Petrifilm Expansion In Focus

Innovation priorities include point-of-processing testing, rapid diagnostics, automation, connected platforms, and AI-enabled analytics.

Neogen is targeting more than five new product launches annually and a 15% return-on-invested-capital threshold for innovation projects.

Operationally, Neogen remains on track to begin transferring Petrifilm manufacturing to its Lansing facility in November 2026. The site is designed to provide about three times current Petrifilm capacity.

Neogen also highlighted its Analytics platform as a driver of recurring revenue and deeper customer relationships, with consumable utilization exceeding 1.5 times following adoption.

President and CEO Mike Nassif said Neogen has reached a turning point after stabilizing its business and restoring operational discipline. The company is now focused on strengthening its market leadership, accelerating growth in its core businesses, pursuing innovation opportunities and improving financial performance to reflect the value it delivers to customers and the global food safety industry.

Recent Quarter Shows Improving Execution

Neogen recently posted a stronger fiscal first quarter, with both earnings and revenue beating expectations and growth broadening across Food Safety and Animal Safety.

Core revenue rose 8.1%, helped by double-digit growth in Petrifilm and pathogen detection, while Animal Safety benefited from stronger veterinary instruments and insect-control products.

Adjusted EBITDA reached $41.6 million, ahead of management's roughly $37 million expectation. Neogen also raised its fiscal 2027 sales and adjusted EBITDA outlook.

NEOG Price Action: Neogen shares were up 1.71% at $11.88 at the time of publication on Thursday, according to market data.