Can Seek Shares Shift Sentiment After Worst Performer Tag?

Seek Ltd shares (AS:SEK) were under the hammer on Wednesday, falling 14.31%, to wear the unwanted crown of worst performer on the ASX 200 for the day. The drawdown came despite the company putting up its sixth consecutive year of double-digit revenue growth, and announcing a record dividend.

The Seek share price closed at A$13.77, erasing much of a dramatic 40% rebound that had lifted the stock from its late-May low of A$11.74 through to Monday’s close. The employment platform remains down 41.1% year-to-date, with Wednesday’s sell-off marking a decisive shift in sentiment following the company’s full-year results release.

Solid Growth Meets Cautious Guidance

Seek reported FY26 sales revenue climbed 17% to A$1.284 billion, while net revenue increased 10% to A$1.199 billion. EBITDA grew 15% to A$530 million, and adjusted profit rose 28% to A$199 million. The company also declared a final dividend of 25 cents per share, bringing the full-year FY26 payout to a record 52 cents per share, up 13% on the prior year.

The results represent Seek’s sixth consecutive year of double-digit revenue growth, achieved despite softer job advertisement volumes across its key markets. Management attributed much of the revenue strength to strong yield gains, indicating the company has successfully extracted more value from each listing through improved pricing and product mix.

However, markets focused on a different narrative: net revenue, EBITDA, and adjusted profit all landed at the bottom end of previously issued guidance ranges. For a stock that had rallied 40% in anticipation of the results, delivering at the low end of expectations proved insufficient to sustain momentum.

Forward Outlook Disappoints

The company’s FY27 guidance appeared to reinforce concerns about near-term growth constraints. The company is targeting revenue of A$1.21 billion to A$1.28 billion and EBITDA of A$530 million to A$580 million for the coming financial year.

The guidance ranges present a mixed picture. At the low end, revenue would actually decline from FY26’s A$1.284 billion result, while EBITDA would remain flat at A$530 million. Even at the midpoint, the outlook implies modest single-digit revenue growth and limited margin expansion, a stark contrast to the double-digit growth rates most have become used to.

A key element of the bearish reaction centres on the composition of Seek’s growth. The company explicitly noted that revenue gains came “despite softer job ad volumes,” with yield improvements carrying much of the load.

While demonstrating pricing power in a challenging environment speaks to the company’s market position, it also raises questions about sustainability. Job advertisement volumes serve as a leading indicator for labour market conditions, and ongoing volume weakness suggests potential headwinds in the company’s core market.

If employers continue to pull back on hiring and recruitment spending intensifies downward pressure, the ability to maintain yield gains may face testing.

Dividend Remains Bright Light

The record 52-cent full-year dividend represents one clear positive for shareholders, particularly those focused on income generation. The 13% increase in the payout signals management confidence in the company’s cash generation capacity and medium-term earnings resilience.

For income-oriented portfolios common in the Australian market, SEK’s growing dividend stream may establish a valuation floor once the current selling pressure exhausts. The company’s ability to simultaneously grow dividends while navigating softer volumes demonstrates the underlying strength of its cash flows.

If the company is to shift the narrative, the challenge is to demonstrate that FY27 represents a consolidation year setting the stage for renewed growth, rather than the beginning of a more prolonged period of subdued performance. Until job market indicators improve and management can guide toward the upper end of its ranges, the stock is likely to face continued scepticism despite its record dividend.