Shares of Recruit Holdings climbed sharply on Monday following an upbeat profit forecast for the coming fiscal year, underscoring the markets positive reaction to strength in the company's HR Technology business led by Indeed.
The Tokyo-listed stock rose as much as 19.1% to 9,318.0 yen by 01:29 GMT, marking its highest level since Jan. 19. Investors responded to the group's Friday guidance showing a robust jump in expected profit attributable to owners for fiscal 2026.
Recruit projected profit attributable to owners to increase 25.4% to 623 billion yen in fiscal 2026, up from 496.9 billion yen in fiscal 2025. The company also reported full-year fiscal 2025 results in which operating profit climbed 28.5% to 630.5 billion yen while revenue grew 3.9% to 3.70 trillion yen.
For fiscal 2026 the company expects revenue to rise roughly 9% to 4.03 trillion yen, with operating profit forecast to increase nearly 25% to 787 billion yen. Recruit attributed the outlook largely to its HR Technology segment, where annual revenue expanded 6.3% to 1.46 trillion yen in the most recent fiscal year.
Within that segment, Recruit said U.S. dollar-based revenue is anticipated to grow 11% in fiscal 2026. Management pointed to monetization improvements at Indeed as a driver of higher yields, noting the U.S. average revenue per job posting climbed 17% even as hiring demand remained stagnant.
The company also lifted its annual dividend outlook to 26 yen per share for fiscal 2026, up from the 25 yen paid in fiscal 2025.
Below are the core elements of Recruits update and market reaction:
- Market response - Tokyo-listed shares spiked to a session high of 9,318.0 yen, gaining as much as 19.1% by 01:29 GMT.
- Profit outlook - Recruit forecast profit attributable to owners of 623 billion yen for fiscal 2026, a 25.4% increase from fiscal 2025.
- Segment performance - HR Technology revenue rose 6.3% to 1.46 trillion yen, with U.S. dollar-based revenue at that segment expected to grow 11% in fiscal 2026.
The companys results and guidance show a clear emphasis on monetization enhancements at Indeed, which management says lifted U.S. average revenue per job posting by 17% despite weak hiring demand. That dynamic underpins Recruits projections for stronger revenue and profit in the year ahead.
Investors and market participants will likely watch upcoming results and execution at the HR Technology unit to judge whether the company can sustain the momentum implied by this forecast.