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Recruit's Profit Jumps 22% in Fiscal 2025, Expects Stronger Revenue on AI Capabilities

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Recruit's Profit Jumps 22% in Fiscal 2025, Expects Stronger Revenue on AI Capabilities

Recruit Holdings (TYO:6098) reported solid profit expansion in fiscal 2025 on steady income and forecast a repeat in the coming fiscal year, according to a Friday filing with the Tokyo bourse.

The Japanese staffing company's profit attributable to owners of the parent registered at 496.9 billion yen, up 22% on year.

Earnings per share in the year ended March 31 reached 347.59 yen, up from 268.32 yen a year earlier.

Recruit's revenue came in at 3,697 trillion yen, up a modest 3.9% on year.

The company also reported that operating income rose 29% on year to 630.5 billion yen.

By another metric, EBITDA-S, Recruit's black ink rose to 794.3 billion yen, up 17% on year. EBITDA-S is defined as operating income plus depreciation and amortization, excluding depreciation of right-of-use assets, plus share-based payment expenses, plus or minus other operating income and expenses.

For fiscal 2026, Recruit expects profit attributable to owners of the parent at 623.0 billion yen, up 25% year.

The company's EPS in fiscal 2026 is estimated to reach 447.0 yen, up 28% on year.

Revenue is projected at 4,030 trillion yen, up 10% on year, indicating a faster rise than in the previous year.

Specifically, Recruit expects strong revenue growth in its human resource technology segment driven by AI capabilities.

"By sustaining this AI-driven virtuous cycle, we believe it is well within our reach to not only maintain double-digit annual revenue growth, but to achieve 20% or greater revenue growth when hiring demand recovers," said Recruit CEO Hisayuki Deko Idekoba.

Recruit shares rose 0.6% in Tokyo on Friday trading.

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