SEEK Limited has reported a robust first half for FY2026, driven by AI-enhanced products and strategic pricing, resulting in double-digit revenue growth and a record interim dividend.
- Placement share lead in Australia grows to 4.9x nearest competitor
- High teens yield growth fuels double-digit revenue increase
- 19% EBITDA growth and 35% adjusted profit growth reported
- $356 million impairment on Zhaopin investment impacts reported loss
- FY2026 guidance upgraded with revenue and EBITDA expected in top half
Strong Market Position and AI-Driven Growth
SEEK Limited has delivered a compelling first half performance for FY2026, showcasing the strength of its market leadership and the impact of its AI-driven innovations. The company increased its placement share lead in Australia to nearly five times that of its nearest competitor, underscoring its dominant position in the local employment services market. This leadership was complemented by high teens yield growth, largely attributed to new AI-enabled advertising tiers and outcome-based pricing models that have resonated well with customers.
Despite macroeconomic headwinds and a slight decline in paid job ad volumes, particularly in Asia, SEEK achieved double-digit revenue growth of 12% on a net basis. The company’s strategic focus on enhancing product offerings and leveraging AI capabilities has allowed it to offset volume pressures with improved pricing and customer value.
Financial Highlights and Investment Strategy
SEEK reported a 19% increase in EBITDA and an impressive 35% growth in adjusted profit, reflecting strong operating leverage. Total expenditure rose by 10%, driven by investments in AI, technology infrastructure, and the reacquisition of Sidekicker, but this was well managed relative to revenue growth. Capital expenditure increased by 24%, signalling SEEK’s commitment to future capability development.
However, the company recorded a significant $356 million impairment on its investment in Zhaopin, a Chinese job marketplace, which contributed to a reported loss of $178 million for continuing operations. SEEK’s CEO Ian Narev emphasised that despite this impairment, the overall return on the initial Zhaopin investment remains strong, with a 3x total return and a 16% internal rate of return since the FY2021 sell-down.
Dividend and Upgraded Guidance
Reflecting confidence in its financial position and future prospects, SEEK declared a record interim dividend of 27 cents per share, fully franked and up 13% from the prior period. This payout represents 100% of cash profit less capital expenditure, signalling a balanced approach to rewarding shareholders while investing in growth.
SEEK also upgraded its FY2026 guidance, now expecting net revenue between $1.19 billion and $1.23 billion and EBITDA between $530 million and $550 million. These revised ranges sit in the top half of the original guidance provided in August 2025, suggesting strong momentum heading into the second half of the financial year.
Outlook Amid Economic and AI Uncertainties
Looking ahead, SEEK acknowledges mixed economic signals across its key markets. Australia faces potential headwinds from tighter monetary policy, while New Zealand’s outlook is more positive. In Asia, hiring activity remains subdued, particularly in Hong Kong, though the pace of decline in job ad volumes is moderating.
SEEK is also navigating the evolving impact of artificial intelligence on the jobs market and recruitment landscape. The company highlights its unique advantage in data scale and proprietary algorithms, which it believes will continue to drive superior matching and customer outcomes. This positions SEEK well to capitalise on AI’s transformative potential while maintaining trust and relevance in a rapidly changing environment.
Bottom Line?
SEEK’s strong H1 momentum and upgraded guidance set the stage for a pivotal year, but the Zhaopin impairment and regional economic uncertainties warrant close investor attention.
Questions in the middle?
- How will SEEK’s AI investments translate into sustained competitive advantage and revenue growth?
- What are the implications of the Zhaopin impairment for SEEK’s Asia strategy and future returns?
- How might evolving macroeconomic conditions in Australia and Asia affect SEEK’s volume and pricing dynamics?