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Recruit Holdings Co
(6098)
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Rating:78Outperform
Price Target:
¥15,008.00
▲(24.50% Upside)
Action:Reiterated
Date:08/10/26
The score is supported primarily by high-quality financial performance (expanding profitability, strong ROE, low leverage, and excellent free-cash-flow conversion) and a strong uptrend in technicals. The main constraint is valuation, with a relatively high P/E and minimal dividend yield.
Positive Factors
Margin expansion and profitability
Recruit’s sustained margin expansion (gross margin ~59% and operating margin ~19% TTM) reflects improved pricing, product mix and operational leverage in its platform and staffing businesses. Higher, durable margins enhance cash generation, support reinvestment and make earnings less sensitive to cyclical revenue swings.
Negative Factors
Moderating revenue growth trajectory
After post‑pandemic acceleration, the slowdown to near‑flat and only modest growth reduces the company’s ability to leverage scale for further margin gains. Persistently slower top‑line expansion can cap long‑term earnings growth unless new markets, product adoption, or pricing improvements materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and profitability
Recruit’s sustained margin expansion (gross margin ~59% and operating margin ~19% TTM) reflects improved pricing, product mix and operational leverage in its platform and staffing businesses. Higher, durable margins enhance cash generation, support reinvestment and make earnings less sensitive to cyclical revenue swings.
Read all positive factors
Recruit Holdings Co (6098) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥22.62T
Dividend Yield0.15%
Average Volume (3M)4.91M
Price to Earnings (P/E)39.5
Beta (1Y)0.83
Revenue Growth9.31%
EPS Growth43.87%
CountryJP
Employees45,586
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)411.88
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
¥12,600.00Price Target Upside4.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)505.12
Revenue Forecast (FY)¥4.16T
Recruit Holdings Co Business Overview & Revenue Model
Company Description
Recruit Holdings Co., Ltd. is a multifaceted enterprise that delivers human resources technology and a variety of business-oriented services. Its activities are organized into three primary divisions: HR Technology, Media & Solutions, and Staffing...
How the Company Makes Money
Recruit Holdings primarily makes money through (1) online recruitment/HR technology services and (2) staffing services. In its online recruiting and HR technology businesses, the company earns revenue by monetizing job marketplaces and recruitment...
Recruit Holdings Co Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 16, 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.
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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
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.86T | 3.70T | 3.56T | 3.42T | 3.43T | 2.87T |
| Gross Profit | 2.28T | 2.19T | 1.98T | 1.85T | 1.88T | 1.53T |
| EBITDA | 860.21B | 762.22B | 655.82B | 575.94B | 491.73B | 504.90B |
| Net Income | 578.59B | 496.91B | 408.50B | 353.65B | 269.80B | 296.83B |
Balance Sheet | ||||||
| Total Assets | 2.91T | 2.79T | 2.77T | 3.14T | 2.79T | 2.42T |
| Cash, Cash Equivalents and Short-Term Investments | 853.05B | 725.58B | 808.63B | 1.14T | 877.37B | 669.55B |
| Total Debt | 178.83B | 186.28B | 208.94B | 221.13B | 254.95B | 271.42B |
| Total Liabilities | 1.12T | 1.19T | 1.14T | 1.14T | 1.15T | 1.05T |
| Stockholders Equity | 1.77T | 1.58T | 1.62T | 2.00T | 1.63T | 1.36T |
Cash Flow | ||||||
| Free Cash Flow | 741.01B | 658.73B | 602.41B | 465.43B | 361.44B | 375.23B |
| Operating Cash Flow | 750.55B | 669.43B | 610.36B | 535.36B | 438.19B | 439.61B |
| Investing Cash Flow | -41.54B | -49.74B | -61.05B | -68.79B | -32.68B | -70.74B |
| Financing Cash Flow | -465.50B | -743.48B | -880.48B | -334.65B | -252.06B | -254.37B |
Recruit Holdings Co Technical Analysis
Positive
12055.00
Price Trends
11988.80
Positive
9871.14
Positive
8863.81
Positive
Market Momentum
819.66
Negative
83.73
Negative
93.83
Negative
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 12055 is below the 20-day moving average (MA) of 13016.75, above the 50-day MA of 11988.80, and above the 200-day MA of 8863.81, indicating a bullish trend. The MACD of 819.66 indicates Negative momentum. The RSI at 83.73 is Negative, neither overbought nor oversold. The STOCH value of 93.83 is Negative, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥157.79B | 17.79 | ― | 2.38% | 12.35% | 28.70% | |
78 Outperform | ¥22.62T | 39.54 | 33.09% | 0.21% | 9.31% | 43.87% | |
76 Outperform | ¥645.33B | 14.24 | 20.65% | 4.42% | 9.70% | 30.96% | |
74 Outperform | ¥256.87B | 16.82 | 32.73% | 5.84% | 2.95% | 19.02% | |
67 Neutral | ¥47.94B | 8.32 | ― | 3.16% | 10.53% | -14.77% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
46 Neutral | ¥61.55B | -18.06 | -2.64% | 0.77% | -0.24% | 59.33% |
* Communication Services Sector Average
JP:6098
Recruit Holdings Co
16,790.00
8,035.14
91.78%
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15.05%
Recruit Holdings Co Corporate Events
Recruit Holdings Lifts FY2026 Outlook After Record Q1 Earnings
Aug 7, 2026
Recruit Holdings reported record first-quarter fiscal 2026 results, with revenue, EBITDA+S and basic earnings per share all surpassing initial expectations. The strong performance was driven particularly by the HR Technology segment, which benefit...
Recruit Holdings Outlines FY2026 Q1 Results and Confirms HR Tech Leadership
Aug 7, 2026
Recruit Holdings Co., Ltd. released its consolidated financial results for the first quarter of FY2026, covering the period from April 1, 2026 to March 31, 2027. The company clarified that all comparisons are made year over year and that figures f...
Recruit Holdings Lifts FY2026 Guidance After Strong First-Quarter Earnings
Aug 7, 2026
Recruit Holdings reported strong results for the three months ended June 30, 2026, with revenue rising 18.9% year on year to ¥1,045.3 billion and operating income jumping 66.1% to ¥255.4 billion. Profit attributable to owners of the pare...
Recruit Holdings Reports Progress on ¥350 Billion Share Buyback Program
Aug 3, 2026
Recruit Holdings has disclosed the latest progress of its ongoing share repurchase program, reporting that it bought back 6,021,300 shares of its common stock on the Tokyo Stock Exchange between July 1 and July 31, 2026, for a total of about ¥...
Recruit Holdings Finalizes Terms for Series 11 Executive Stock Options
Jul 27, 2026
Recruit Holdings has set the final terms for its Series 11 stock options to be granted to four Directors of the Board, excluding independents, and three Senior Vice Presidents. The program covers 5,937 options in total, with each option exercisabl...
Recruit Holdings Ties Executive Pay to Stock Performance With New Option Grant
Jul 10, 2026
Recruit Holdings Co., Ltd. has approved the issuance of Series 11 stock options to four directors, excluding independent directors, and three senior vice presidents as part of its executive compensation framework. The options, which require no cas...
Recruit Holdings Reports Progress and June Pause in Share Buyback Program
Jul 1, 2026
Recruit Holdings reported that it conducted no share repurchases in June 2026, despite having an ongoing buyback program authorized by its board in March. The authorization allows for up to 64 million shares, or 4.58% of shares outstanding excludi...
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...
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.