Seek

(AI video summary)

This video was created on 17 February 2026 for IG audiences by ausbiz.

ASX code: SEK

Seek narrows FY 2026 guidance as AI enhances performance

Seek has adjusted its financial year (FY) 2026 guidance to the upside after achieving improved yields in the first half. Artificial intelligence (AI)-enabled advertisements and an outcome-based pricing model increased its yield, offsetting volume declines due to macroeconomic conditions and its freemium offering.

Despite these gains, Seek recorded a loss of $178 million in the first half due to prior value reductions from its investment in a Chinese jobs platform. The company targets an adjusted profit between $195 million and $250 million for FY 2026, with a record dividend of $0.27 per share. Shares were slightly negative after the report.

Market sensitivity impacts profit outlook

Seek's earnings stability issues, emphasise its sensitivity to market movements. With job market shifts, the volume of job advertisements and employer willingness to pay vary. Though Seek reported revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth of 20%, and adjusted profit growth of 35%, its investment in China has struggled, causing impairment losses. This makes long-term performance predictions challenging and prompts investor caution.

Investment outlook

Seek remains a key player in online job classifieds, demonstrating strong revenue growth through technology enhancements. However, a shift from growth to value stocks is affecting growth stocks, especially in technology. The Aussie market experienced growth stock pressure, influencing United States (US) markets, and Seek may continue to face challenges as global growth weakens and impacts employment markets.