Earnings Update: Recruit Holdings Co., Ltd. (TSE:6098) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Recruit Holdings Co., Ltd. (TSE:6098) filed its quarterly result this time last week. The early response was not positive, with shares down 6.3% to JP¥10,030 in the past week. Results were roughly in line with estimates, with revenues of JP¥897b and statutory earnings per share of JP¥226. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Recruit Holdings

Taking into account the latest results, the most recent consensus for Recruit Holdings from 13 analysts is for revenues of JP¥3.78t in 2026. If met, it would imply a credible 6.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 25% to JP¥317. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥3.77t and earnings per share (EPS) of JP¥316 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥10,462, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Recruit Holdings analyst has a price target of JP¥12,700 per share, while the most pessimistic values it at JP¥7,700. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Recruit Holdings' revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Recruit Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Recruit Holdings going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Recruit Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.