Recruit Holdings (6098) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 revenue rose 18.9% year-over-year to ¥1,045.3 billion, with EBITDA+S up 56.5% to ¥292.8 billion and basic EPS up 73.2% to ¥145.48.

• Profit attributable to owners increased 67.5% year-over-year in Q1 to ¥202.6 billion.

• HR Technology segment drove growth, with U.S. revenue up 30% year-over-year and global HR Tech revenue outlook raised to 18.7% growth.

• AI automation tools are rapidly increasing productivity for HR teams and job seekers, leading to faster hiring and higher engagement.

• Comprehensive income for the period more than doubled, up 155% year-over-year to ¥231.7 billion.

Financial highlights

• Q1 EBITDA+S margin improved to 28.0% from 21.3% year-over-year.

• Gross cash and cash equivalents stood at ¥908.5 billion at June-end, up from ¥823.8 billion at March 31, 2025.

• Share repurchases reached 12.5 million shares for ¥120 billion, 34.3% of the total program.

• Basic EPS increased 73.2% year-over-year to ¥145.48; diluted EPS rose 73.7% to ¥144.56.

• Gross profit for Q1 FY2026 was ¥643.5 billion, up from ¥521.9 billion in Q1 FY2025.

Outlook and guidance

• FY2026 consolidated revenue guidance raised to ¥4,230.0 billion (+14.4% YoY), EBITDA+S to ¥1,105.0 billion (+39.1% YoY), and basic EPS to ¥543.00 (+55.2% YoY).

• Net income guidance up to ¥755.0 billion (+51.9% YoY).

• HR Technology segment revenue expected to reach $11.4 billion (+18.7% YoY), with U.S. revenue up 25.1% YoY.

• Segment guidance: HR Technology revenue ¥1,822.0 billion, Staffing ¥1,831.0 billion, MMT ¥605.0 billion.

• Foreign exchange assumptions updated to 159 yen/USD, 184 yen/Euro, 112 yen/AUD for FY2026 guidance.