Recruit Holdings Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in Recruit Holdings Co., Ltd. (TSE:6098) had a good week, as its shares rose 5.2% to close at JP¥8,107 following the release of its interim results. Recruit Holdings reported JP¥915b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥89.16 beat expectations, being 6.3% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Recruit Holdings' 16 analysts are forecasting 2026 revenues to be JP¥3.58t, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥307, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.57t and earnings per share (EPS) of JP¥305 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.

Check out our latest analysis for Recruit Holdings

There were no changes to revenue or earnings estimates or the price target of JP¥9,937, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Recruit Holdings, with the most bullish analyst valuing it at JP¥12,200 and the most bearish at JP¥8,400 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Recruit Holdings' revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2026 being well below the historical 9.3% 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 6.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Recruit Holdings.

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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Recruit Holdings analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Recruit Holdings that you need to be mindful of.

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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.