Seek Ltd (ASX: SEK) shares are down close to 3% at the time of writing after the online employment marketplace delivered solid double-digit growth in its FY26 half-year result.
That reaction may surprise some readers. On paper, the numbers were strong. Yet the share price remains more than 30% lower than it was 12 months ago, suggesting investors are weighing more than just the headline figures.
What Seek reported
For the six months to 31 December 2025, Seek delivered:
- Sales revenue up 21% to $647 million
- Net revenue up 12% to $601 million
- Operating earnings (EBITDA) up 19% to $267 million
- Adjusted profit up 35% to $104 million
The board also declared a fully franked interim dividend of 27 cents per share, up 13% on the prior period. That lifts the rolling 12-month dividend to 49 cents per share. However, the statutory result showed a reported loss of $178 million. This was driven largely by a $356 million impairment relating to its investment in Zhaopin.
So operationally, the business improved. Statutorily, it reported a loss. A case of where a positive and negative are both are true at the same time.
Growth driven by pricing, not volumes
Digging into the detail helps explain the market’s measured reaction.
In Australian & New Zealand markets, paid job ad volumes dipped slightly due to macroeconomic conditions. Revenue growth was supported by yield expansion, assisted by AI-enabled product upgrades and pricing initiatives.
Across Asia, revenue rose 4%, with volumes falling but yield climbing 17% as customers shifted toward upgraded ad tiers.
This distinction matters. Volume growth tends to signal stronger hiring conditions. Yield growth can demonstrate pricing power, but it is not always sustainable if labour markets soften further. Seek also completed the reacquisition of Sidekicker in May 2025, with its results now included.
Upgraded guidance and Employment Hero update
Management upgraded FY26 guidance, now expecting met revenue of $1.19 billion to $1.23 billion and operating earnings of $530 million to $550 million
The Seek Growth Fund also commenced a process to divest its stake in Employment Hero, with a liquidity window planned for calendar 2026. Since inception, the fund has delivered a 33% return on invested capital.
The potential realisation of this stake could improve balance sheet flexibility or support capital returns.
Sentiment remains weak
Despite upgraded guidance and a record interim dividend, the market response has been cautious.
There are a few reasons investors may be holding back:
- Volumes remain soft in key markets
- A large impairment highlights risks in offshore investments
- “Tech” valuations have compressed broadly over the past year
It is also worth remembering that Seek benefited strongly from post-pandemic hiring momentum. Comparisons are becoming tougher, and investors are increasingly focused on the durability of earnings rather than short-term growth bursts.
The bigger picture for investors
Seek remains the clear market leader in Australia, with placement share 4.9 times its nearest competitor. Its data advantage and product ecosystem provide real competitive strengths.
Yet markets often look beyond current earnings. When a stock is down over 30% in 12 months, it usually reflects shifting expectations about future growth, not just past performance.
