Recruit Holdings Co (RCRITN) Q1 2026 Earnings Report
MX:RCRITN Q1 2026 EPS Results
- Actual EPS
- MXN 17.12
- Consensus EPS
- MXN 12.89
- Beat/Miss
- Beat by +MXN 4.22
- One Year Ago EPS
- MXN 9.88
MX:RCRITN Q1 2026 Revenue Results
- Actual Revenue
- MXN 122.98B
- Expected Revenue
- MXN 115.99B
- Beat/Miss
- Beat by +MXN 7.00B
- YoY Revenue Growth
- +18.95%
Earnings Announcement Details
- Quarter
- Q1 2026
- Date
- 08/07/2026
- Time
- Before Open
- Conference Call
- Friday, August 7, 2026
Recruit Holdings Co's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q1 2026 Earnings Call Audio
Q1 2026 Earnings Slide Deck
Q1 2026 Earnings Call Summary
The call was strongly positive, led by record Q1 consolidated results, substantial upward revisions to full-year guidance, strong HR Technology and U.S. monetization growth, expanding AI product adoption, and continued progress with GMV-linked business models. The main concerns were weaker U.S. hiring activity, forecasting uncertainty caused by rapid AI adoption, challenging staffing conditions in Europe and Australia, Japan-specific business headwinds, and the unresolved Japan Fair Trade Commission inspection. Highlights significantly outweighed the lowlights.
For FY 2026, Recruit Holdings assumes an exchange rate of JPY 159.0 per U.S. dollar and expects consolidated revenue to increase 14.4% year-over-year to JPY 4.23 trillion, EBITDA+S to increase 39.1% year-over-year to JPY 1.105 trillion, EBITDA+S margin of 26.1%, basic EPS of JPY 543, and net income of JPY 755.0 billion; HR Technology revenue is expected to increase 18.7% year-over-year globally to $11.4 billion, increase 24.9% year-over-year on a Japanese yen basis to JPY 1.82 trillion, with a segment EBITDA+S margin of 45.8%, while the U.S. is expected to account for 58% of segment revenue, with revenue growth of 25.1% to USD 6.6 billion, U.S. ARPJ growth of approximately 30%, and an approximate 4% year-over-year decline in the total number of U.S. job postings; Europe and others revenue is expected to increase 23.2% year-over-year to USD 2.5 billion, Japan revenue is expected to increase 5.4% year-over-year to JPY 367.0 billion, or be flat at 0% year-over-year at USD 2.3 billion, staffing revenue is expected to be JPY 1.83 trillion with a segment EBITDA+S margin of 5.6%, and MMT revenue is expected to increase 7.1% year-over-year to JPY 605 billion with a segment EBITDA+S process margin of 30% and first half EBITDA+S margin of approximately 31%; the guidance does not reflect any financial impact from the Japan Fair Trade Commission inspection.
- Record Q1 Consolidated ResultsQ1 FY 2026 revenue increased 18.9% year-over-year to JPY 1.04 trillion, EBITDA+S increased 56.5% to JPY 292.8 billion with a 28.0% margin, and basic EPS increased 73.2% to JPY 145.48. Revenue, EBITDA+S, and basic EPS each substantially exceeded initial expectations and reached record highs.
- Raised Full-Year Consolidated GuidanceFull-year revenue guidance was raised to JPY 4.23 trillion, up 14.4% year-over-year, from initial guidance of JPY 4.03 trillion. EBITDA+S guidance was raised to JPY 1.105 trillion, up 39.1% year-over-year and above JPY 1 trillion for the first time, while the EBITDA+S margin outlook increased from 23.5% to 26.1%. Basic EPS guidance was raised from JPY 447 to JPY 543, up 55.2% year-over-year, and net income guidance increased from JPY 623.0 billion to JPY 755.0 billion, up 51.9% year-over-year.
- Strong HR Technology PerformanceHR Technology revenue increased 20.9% year-over-year on a U.S. dollar basis to USD 2.8 billion and increased 33.2% on a Japanese yen basis to JPY 455.4 billion. Segment EBITDA+S margin increased to 47.4%, driven by strong revenue growth and continued discipline in cost management.
- Raised HR Technology OutlookFull-year HR Technology revenue guidance was raised to USD 11.4 billion, up 18.7% year-over-year, from an initial outlook of 11% growth. On a Japanese yen basis, the outlook was raised to JPY 1.82 trillion, up 24.9% year-over-year, from 13.4% growth. The segment EBITDA+S margin outlook was raised from 41.0% to 45.8%.
- U.S. HR Technology Revenue and Monetization GrowthU.S. revenue increased 30.0% year-over-year to a quarterly record of USD 1.64 billion, driven by further monetization development led by the Premium Sponsored Job package. U.S. average revenue per job posting increased 35% year-over-year in Q1, substantially above quarterly levels recorded in fiscal year 2025.
- Raised U.S. Full-Year Revenue OutlookThe full-year U.S. revenue growth outlook was raised from 13.6% to 25.1%, reaching USD 6.6 billion, which would be a record high for full-year revenue on a U.S. dollar basis. The expected U.S. ARPJ growth rate for fiscal year 2026 is approximately 30%, and the U.S. is expected to account for 58% of HR Technology segment revenue.
- Enterprise and SMB Adoption of AI ProductsGrowth in both the number of SMB clients and spend per client drove overall top-line expansion. Larger enterprise clients also increasingly trialed AI products; one healthcare client concluded that AI automation significantly reduced candidate-screening time and delivered output equivalent to several full-time recruiters.
- AI-Driven Hiring ProductivityThe company stated that AI products automate manual HR tasks, shorten time to hire, improve matching speed and accuracy, and provide faster responses, earlier access to first interviews, and potentially faster hiring for job seekers. Enterprise customers are increasingly applying the services to additional areas after seeing reduced manual work.
- Expansion of Hiring Automation OpportunityRecruit believes it can expand beyond the USD 34 billion job advertising market into business clients' approximately USD 200 billion hiring expenditure, including placement services and an estimated USD 68 billion for hiring automation. The company described substantial long-term growth potential and significant remaining white space.
- Improved HR Technology Cost EfficiencyEmployee benefit expenses, including share-based payment expenses, together with outsourcing expenses, were approximately 37% of HR Technology revenue, down significantly from approximately 48% in Q1 FY 2025. AI-related compute and infrastructure expenses are growing but remain a small portion of the cost base and are not yet a material factor in the margin profile.
- Europe and Others GrowthFirst-quarter Europe and others revenue increased 28.5% year-over-year to USD 0.6 billion. On a local-currency basis, revenue increased approximately 34% year-over-year in the U.K. and approximately 46% in Canada, mainly driven by expanded adoption of Premium Sponsored Jobs. Full-year revenue guidance was raised from 17.1% growth to 23.2% growth, reaching USD 2.5 billion.
- Japan HR Technology ImprovementJapan HR Technology revenue increased 6.7% year-over-year to JPY 93.3 billion. Job advertising performance exceeded initial expectations due to an increase in paid jobs and a growing price per job, while placement services recovered faster than expected. Full-year Japan revenue guidance was raised from 2.1% growth to 5.4% growth, reaching JPY 367.0 billion.
- Staffing Segment GrowthStaffing revenue increased 11.5% year-over-year to JPY 455.2 billion. Japan revenue increased 3.5% to JPY 220.2 billion, while Europe, the U.S., and Australia revenue increased 20.3% to JPY 235.0 billion, including a positive foreign-exchange impact and strong U.S. performance. The segment EBITDA+S margin was 6.2%.
- MMT Revenue and Margin GrowthMarketing Matching Technologies revenue increased 3.7% year-over-year to JPY 141.8 billion, while segment EBITDA+S margin was 36.0%, supported by revenue growth and cost optimization, including reduced service outsourcing expenses. Full-year guidance remains unchanged at JPY 605 billion of revenue, up 7.1% year-over-year, with a 30% segment EBITDA+S margin.
- GMV-Linked Model ProgressThe GMV-linked model contributed to revenue growth across automobile, beauty, custom home building, and renovation consulting. Automobile first-quarter revenue increased 15.8% year-over-year, while individual user actions increased 12.5% year-over-year after the model was introduced. Lifestyle revenue increased 9.6%, driven largely by beauty, and housing and real estate revenue increased 2.8%.
- MMT Platform Scale and Data AssetsMMT connects an individual user base of approximately 99 million Recruit IDs with approximately 980,000 business clients across multiple verticals. The company uses accumulated platform data and AI to propose services and pricing tailored to business clients, most of whom are small and mid-sized businesses.
- Share Repurchases and Cash PositionAs of the end of July, Recruit had repurchased 12.5 million shares for JPY 120 billion under the ongoing JPY 350.0 billion share repurchase program, representing 34.3% of the total program. Gross cash and cash equivalents were JPY 908.5 billion at the end of June.
- Enterprise Go-to-Market ExpansionOver the prior six months, the company increased outreach to CFOs, COOs, CIOs, and other management decision-makers, including through targeted events, sponsorships, client invitations, and dinners. Management stated that it had not seen the level of opposition or resistance from HR teams that it had expected.
MX:RCRITN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 11, 2026 | 2026 (Q2) | 16.60- | 10.49 | ― | ― |
| Aug 07, 2026 | 2026 (Q1) | 12.8917.12 | 9.88 | 73.25% (+7.24) | |
| May 15, 2026 | 2025 (Q4) | 5.598.61 | 5.33 | 61.55% (+3.28) | |
| Feb 09, 2026 | 2025 (Q3) | 10.5012.17 | 9.41 | 29.36% (+2.76) | |
| Nov 06, 2025 | 2025 (Q2) | 9.8710.49 | 9 | 16.51% (+1.49) | |
| Aug 05, 2025 | 2025 (Q1) | 9.089.88 | 8.13 | 21.48% (+1.75) | |
| May 09, 2025 | 2024 (Q4) | 3.365.33 | 2.6 | 105.21% (+2.73) | |
| Feb 12, 2025 | 2024 (Q3) | ―9.41 | 8 | 17.55% (+1.40) | |
| Nov 11, 2024 | 2024 (Q2) | ―9.00 | 8.64 | 4.25% (+0.37) | |
| Aug 08, 2024 | 2024 (Q1) | 6.528.13 | 7.3 | 11.41% (+0.83) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
