Recruit Holdings reported record highs in revenue, EBITDA+S, and basic EPS for FY2026 Q1, with revenue increasing 18.9% year over year to 1.04 trillion yen. . The company also raised its full-year consolidated guidance, driven mainly by stronger-than-expected momentum in HR Technology.

While these figures tell a compelling financial story, they also offer a clear window into what is working in HR Technology, particularly inside Indeed’s business.

During Recruit Holdings’ FY2026 Q1 earnings call, CEO Hisayuki “Deko” Idekoba described how “our AI automation tools are boosting productivity for HR teams worldwide” to deliver faster outcomes from employers, better experiences for job seekers, and stronger financial performance for Recruit.

AI applied to the work of hiring

In line with Recruit’s core strategy to “Simplify Hiring,” HR Technology is using AI to reduce the time-consuming work of the hiring process. As Deko explained on the call, “rather  than  simply  selling  software  tools,  to  put  it  very  simply,  we  are  eliminating  downstream  processes.” Those downstream processes include the manual tasks that have long weighed on hiring teams: reviewing resumes, verifying qualifications, searching for candidates, reaching out, and coordinating interviews. By improving matching earlier in the process, Indeed is helping employers spend less time on repetitive work and more time making decisions and engaging with candidates.

This is where Indeed’s solutions come in, from Premium Sponsored Jobs to AI-powered tools that help employers source and screen candidates. Identified as a primary driver of U.S. revenue growth, Premium Sponsored Jobs combine advanced targeting and matching capabilities with greater visibility and time-saving AI features to help employers reach the right candidates faster. Premium Sponsored Jobs move forward in the hiring process with 3 times more applications^*1, and critically, get to a hire 5 days faster than non-sponsored jobs^*2.

Separately, Indeed’s Smart Sourcing helps recruiters discover and connect with relevant candidates faster, identifying those with related skill sets and inviting qualified talent to apply. And Smart Screening helps hiring teams identify stronger-fit candidates who meet their requirements faster, allowing them to focus their time on more relevant applications while retaining full control over hiring decisions. Together, these solutions help reduce friction from the hiring process, making it faster and more efficient for employers and job seekers alike.

The value is showing up in the numbers. In the first quarter of FY2026, Indeed’s business delivered record results, even as the total number of US job postings declined by about 4% year over year. Q1 US revenue for HR Technology increased 30.0% year over year to a quarterly record of 1.64 billion US dollars.

Chart showing HR Technology segment revenue in FY2026 Q1. U.S. revenue reached $1.64 billion, up 30.0% year over year.

Better outcomes for employers and job seekers

Importantly, this growth reflects employers’ willingness to invest in Recruit’s solutions since they are seeing their value. 

For instance, a healthcare client found that Indeed’s AI-enabled solutions delivered productivity equivalent to several recruiters. As Deko noted, “The reality is that many large enterprises employ dozens—sometimes even hundreds—of  recruiters, incurring massive costs from manual processes. By enabling clients to  dramatically boost their productivity by adopting our AI products, we believe we have a major source of growth ahead of us.”

This example also shows how Indeed’s AI can reduce manual work for hiring teams while improving productivity and efficiency across the hiring process. Some large employers assess the value of hiring solutions by comparing resume database subscription fees and recruiter time with the number of interviews scheduled. Indeed’s AI-powered solutions help automate these tasks, allowing employers to reach relevant candidates faster. With employers spending approximately $200 billion on hiring-related activities, Recruit sees a medium- to long-term growth opportunity for HR Technology in helping automate and streamline more of the hiring process, alongside job advertising^*3.

But the benefits for reducing downstream processes are not just for employers. Deko also emphasized that better matching and less manual work improves the experience for job seekers as well. When screening, matching, and outreach become faster and more precise, job seekers can hear back from employers sooner, reach first interviews faster, and spend less time navigating a slow hiring process.

Better matches can help employers find the people they need while helping job seekers find the right opportunities more efficiently. For a company long focused on simplifying hiring, FY2026 Q1 offered a clearer view of how AI is helping turn that ambition into measurable results.