Recruit Holdings Co Ltd (JP:6098)
:6098
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Recruit Holdings Co
(6098)
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Rating:78Outperform
Price Target:
¥12,363.00
▲(58.48% Upside)
Action:Reiterated
Date:05/20/26
Score driven primarily by strong financial performance (profit/FCF growth and a de-risked balance sheet) and supportive earnings-call guidance upgrades. The main offsets are overbought technical conditions and only moderate valuation support (P/E ~18.7 with a low ~0.25% dividend yield).
Positive Factors
Revenue & profit momentum
Sustained multi‑year revenue and net income expansion, with margins improving through 2025, signals a scalable business model and durable demand. This trajectory supports reinvestment, product development and resilience across cycles, underpinning medium‑term cash generation and profitability.
Negative Factors
Japan HR Tech downturn
Declines in the domestic HR Tech business—a core revenue base—indicate structural weakness and execution shortfalls in placement services. Prolonged softness requires sustained marketing investment and successful product fixes, otherwise aggregate growth and margins could deteriorate materially.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profit momentum
Sustained multi‑year revenue and net income expansion, with margins improving through 2025, signals a scalable business model and durable demand. This trajectory supports reinvestment, product development and resilience across cycles, underpinning medium‑term cash generation and profitability.
Read all positive factors
Recruit Holdings Co (6098) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥14.82T
Dividend Yield0.27%
Average Volume (3M)4.91M
Price to Earnings (P/E)29.9
Beta (1Y)0.95
Revenue Growth3.93%
EPS Growth29.13%
CountryJP
Employees51,373
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)350.37
Shares Outstanding1,472,504,200
10 Day Avg. Volume4,607,310
30 Day Avg. Volume4,913,210
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)5.86
Price to Sales (P/S)2.51
P/FCF Ratio14.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥11,400.00Price Target Upside46.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)440.81
Revenue Forecast (FY)¥4.02T
Recruit Holdings Co Business Overview & Revenue Model
Company Description
Recruit Holdings Co., Ltd. is a global human resource and staffing company headquartered in Tokyo, Japan. Founded in 1960, the company operates through various segments, including Staffing, which provides temporary staffing services, and Solutions...
How the Company Makes Money
Recruit Holdings primarily generates revenue from (1) online job advertising and HR technology, (2) staffing services, and (3) marketing solutions. In its online job advertising/HR technology businesses, it earns money from employers and recruiter...
Recruit Holdings Co Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
Overall the call was positive: management delivered an upward revision to full-year guidance and raised EPS while reporting strong U.S. HR Technology monetization (double-digit ARPJ growth) and robust European trends. MMT provided a clear strategic evolution (GMV-linked fees, AI integration) with a tangible near-term revenue uplift (JPY ~12 billion expected from Beauty). However, the company flagged notable near-term headwinds—Japan revenue declines, planned marketing-driven margin compression in Q4, ongoing execution risks in placement and MMT transitions, and the impact of declining U.S. job postings—requiring continued monitoring. On balance, the stronger-than-expected top-line performance, record-high guidance and strategic initiatives outweigh the localized weaknesses and execution risks.Positive Updates
Upgraded Full-Year Guidance
Revised consolidated full-year revenue increased by JPY 66.1 billion to JPY 3,664.7 billion and EBITDA+S increased by JPY 30.2 billion to JPY 763.8 billion versus prior outlook; basic EPS guidance raised by JPY 22 to JPY 335 (up 23.4% year-over-year). Company expects full-year revenue, EBITDA, EBITDA+S, profit attributable to owners and basic EPS to all reach new record highs.
Negative Updates
Japan HR Technology Weakness and Declining Revenue
Japan HR Technology revenue for Q3 was JPY 81.6 billion, down 4.6% year-over-year (USD basis USD 531 million, down 5.4% YoY). Q4 is expected to weaken further: JPY 87.0 billion, down 7.8% YoY (USD 568 million, down 8.1% YoY). Management noted transition-related uncertainties and the need to ramp marketing to restore placement services.
Read all updates
Q3-2025 Updates
Positive
Negative
Upgraded Full-Year Guidance
Revised consolidated full-year revenue increased by JPY 66.1 billion to JPY 3,664.7 billion and EBITDA+S increased by JPY 30.2 billion to JPY 763.8 billion versus prior outlook; basic EPS guidance raised by JPY 22 to JPY 335 (up 23.4% year-over-year). Company expects full-year revenue, EBITDA, EBITDA+S, profit attributable to owners and basic EPS to all reach new record highs.
Read all positive updates
Company Guidance
Management raised full‑year consolidated guidance, increasing revenue by JPY66.1bn to JPY3,664.7bn, EBITDA+S by JPY30.2bn to JPY763.8bn (margin 20.8%), and basic EPS by JPY22 to JPY335 (up 23.4% y/y); second‑half EBITDA+S was lifted to JPY369.2bn (from JPY339.0bn), net cash stood at JPY648.2bn as of Dec 31, 2025 and is expected to be ~JPY700bn at year‑end, and the JPY250.0bn buyback was completed (total share purchases this fiscal year JPY677.9bn). Key segment guidance: HR Technology U.S. Q3 revenue was $1.3bn (vs $1.27bn outlook), +10.1% y/y with U.S. ARPJ +18% (Q4 U.S. revenue expected $1.33bn, +12.4% y/y, ARPJ +19%, job postings −6% y/y); HR Tech segment Q3 revenue $2.3bn (+7.9% y/y), Q4 ~$2.4bn (+8.5%); Q3 segment EBITDA margin 35.4% (EBITDA+S 39.1%) with Q4 margins guided to 30.8% and 34.6%; full‑year HR Tech revenue ~$9.5bn (+6.1% y/y) / JPY1,428.3bn (+4.1% y/y) with full‑year EBITDA margin 32.3% (EBITDA+S 36.6%). MMT guidance: full‑year revenue JPY566.8bn (+5.1% y/y) with EBITDA+S margin 27.1% (target 30% next year and 35% by FY2028); in Beauty GMV was ~JPY1.1tr in FY2024, FY25 revenue outlook JPY126.6bn, and the new 1% GMV fee is expected to add ~JPY12bn next fiscal year.Recruit Holdings Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.70T | 3.56T | 3.42T | 3.43T | 2.87T |
| Gross Profit | 2.19T | 1.98T | 1.85T | 1.88T | 1.53T |
| EBITDA | 767.60B | 655.82B | 575.94B | 491.73B | 504.90B |
| Net Income | 496.91B | 408.50B | 353.65B | 269.80B | 296.83B |
Balance Sheet | |||||
| Total Assets | 2.79T | 2.77T | 3.14T | 2.79T | 2.42T |
| Cash, Cash Equivalents and Short-Term Investments | 725.58B | 808.63B | 1.14T | 877.37B | 669.55B |
| Total Debt | 186.28B | 208.94B | 221.13B | 254.95B | 271.42B |
| Total Liabilities | 1.19T | 1.14T | 1.14T | 1.15T | 1.05T |
| Stockholders Equity | 1.58T | 1.62T | 2.00T | 1.63T | 1.36T |
Cash Flow | |||||
| Free Cash Flow | 658.73B | 602.41B | 465.43B | 361.44B | 375.23B |
| Operating Cash Flow | 669.43B | 610.36B | 535.36B | 438.19B | 439.61B |
| Investing Cash Flow | -49.74B | -61.05B | -68.79B | -32.68B | -70.74B |
| Financing Cash Flow | -743.48B | -880.48B | -334.65B | -252.06B | -254.37B |
Recruit Holdings Co Technical Analysis
Positive
7801.00
Price Trends
7926.90
Positive
7733.69
Positive
7986.20
Positive
Market Momentum
871.90
Negative
81.68
Negative
74.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6098, the sentiment is Positive. The current price of 7801 is below the 20-day moving average (MA) of 9239.40, below the 50-day MA of 7926.90, and below the 200-day MA of 7986.20, indicating a bullish trend. The MACD of 871.90 indicates Negative momentum. The RSI at 81.68 is Negative, neither overbought nor oversold. The STOCH value of 74.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6098.
Recruit Holdings Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥14.82T | 29.86 | 27.29% | 0.27% | 3.93% | 29.13% | |
75 Outperform | ¥141.66B | 15.08 | ― | 2.38% | 15.54% | 40.98% | |
74 Outperform | ¥233.43B | 15.53 | 28.98% | 5.57% | 3.47% | 18.14% | |
69 Neutral | ¥532.63B | 12.37 | 19.18% | 3.59% | 7.21% | 20.34% | |
62 Neutral | ¥41.87B | 6.86 | ― | 3.16% | 14.50% | -3.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
42 Neutral | ¥55.72B | -12.88 | -6.02% | 0.77% | -3.21% | -104.97% |
* Communication Services Sector Average
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Recruit Holdings Co Corporate Events
Recruit Holdings Reports Progress on 2026 Share Buyback Program
Jun 1, 2026
Recruit Holdings has disclosed the latest progress of its ongoing share repurchase program, authorized by its board in March 2026, which allows buybacks of up to 64 million shares or 350 billion yen by late November. Between April 1 and May 31, th...
Recruit Holdings to Buy Shares for Expanded Equity Pay Plan
May 15, 2026
Recruit Holdings will purchase its own shares in May 2026 to fund an existing equity compensation plan for key management at the parent company and for directors and key management at subsidiaries. The scheme links long-term incentives to sharehol...
Recruit Holdings to Lift Cap and Lengthen Vesting in Director Equity Plan
May 15, 2026
Recruit Holdings plans to seek shareholder approval to partially revise its equity compensation plan for board directors, excluding independent members, at its June 24, 2026 annual meeting. The company aims to secure globally competitive executive...
Recruit Holdings Forecasts Strong FY2026 Growth on AI-Driven HR Technology Gains
May 15, 2026
Recruit Holdings reported record-high revenue, EBITDA+S, and basic EPS for fiscal 2025, with consolidated revenue up 3.9% and profit attributable to owners rising 21.6%. The company posted strong margins, with EBITDA+S margin improving to 21.5% an...
Recruit Holdings Highlights FY2025 Results and HR Tech Focus
May 15, 2026
Recruit Holdings reported its full-year consolidated results for FY2025, covering the period from April 1, 2025 to March 31, 2026, and held a briefing on its performance on May 15, 2026. The presentation, led by President and CEO Hisayuki “D...
Recruit Holdings Lifts Profit, Boosts Dividend and Targets Faster Growth in FY2026
May 15, 2026
Recruit Holdings reported steady revenue growth for the year ended March 31, 2026, with sales up 3.9% to ¥3.70 trillion and operating income jumping 28.5% to ¥630.5 billion, driven by a strong rise in profitability and higher EBITDA+S. P...
Recruit Holdings Advances Share Buyback Program in April 2026
May 1, 2026
Recruit Holdings Co., Ltd. is a Tokyo-listed company operating in the information services and human resources sector, best known for platforms spanning job placement, staffing, and related digital services. The group focuses on matching individua...
Recruit Holdings Signals Openness to Smaller Trading Units to Broaden Investor Base
Apr 8, 2026
Recruit Holdings has announced a policy stance on its investment unit structure, emphasizing that reducing the number of shares per trading unit is an effective tool to broaden its investor base. The company views a smaller trading unit as a way t...
Recruit Holdings Launches Up to ¥350 Billion Share Buyback
Mar 31, 2026
Recruit Holdings Co. has authorized a share repurchase program of up to 64 million shares, representing about 4.58% of its outstanding stock, with a maximum outlay of 350 billion yen. The buyback, to be executed on the Tokyo Stock Exchange between...
Recruit Holdings to Record ¥312.1 Billion in Subsidiary Dividends in FY2025 Non-Consolidated Results
Mar 19, 2026
Recruit Holdings said it will book ¥312.1 billion in dividends from four consolidated subsidiaries as operating revenue in its non-consolidated results for the fiscal year ending March 2026. The internal dividend stream from units including R...
Recruit Holdings to Retire 5.8% of Outstanding Shares
Mar 11, 2026
Recruit Holdings Co., Ltd. said its board has approved the retirement of 91,408,000 shares of treasury stock, representing 5.84% of shares outstanding before the move. The retirement, scheduled for March 23, 2026, will reduce the total number of i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.