EY’s Australian revenues down slightly to $2.7 billion
The Australian business of EY has seen its 2026 financial year revenues slip slightly to just under $2.7 billion, with tax and assurance gains offsetting an ongoing dive in advisory income.
Tracking in the right direction, the $2.67 billion figure was a lessening 1.8 percent drop on the firm’s previous year’s 3 percent decline, along with the 6 percent bite taken from the books in 2024. EY’s consulting practice, however, was down by a further 8.5 percent.
That number, together with its EY-Parthenon division (expanded last year to include strategy & transactions) dipping by 4 percent, is seeing EY increasingly eyeing the managed services market, with plans to grow it to almost a third of its overall business.
“We are seeing growing demand from clients to extend our advice into the operation of key areas of their business, including cybersecurity, payroll, mobility, and tax and finance operations,” stated Oceania CEO David Larocca. “They want us not only to advise on transformation, but also to help deliver it and operate critical functions in ways that improve performance and manage risk.”
Larocca added that the Big Four firm’s outsourced offering is now a $400 million business across the region, with a ‘multibillion-dollar pipeline” following a multi-year global investment, including the establishment of a base in Ballarat in 2022. The aim, Larocca told the AFR, is to now grow its managed services take to 30 percent of overall revenues in the next three to five years.
In terms of its primary divisions, Consulting still added over $850 million last year as the company’s largest line, followed by Assurance and Tax, which respectively grew by 4 percent and 3 percent to roughly $745 million and $655 million. EY-Parthenon contributed a further $425 million, while in general AI, data, and technology remain growth drivers alongside sustainability.
EY also added 34 new partners over the course of last year, including 22 internal promotions (slightly eclipsed by the latest mid-year intake), but saw its overall numbers drop from around 775 to 720 and a firm-wide reduction in headcount of 400. The upside in the lower number of partners, and in part due to the reduced costs of AI, was a 5 percent increase in average pay to $846,000
“I’m proud of how our partners and people have responded to a year of changing client needs and market conditions,” Larocca said, adding that the firm was expecting a return to growth over the current period. “We are confident that if we continue to deliver quality work, invest in our people, and respond effectively to the market, we will be well positioned for the year ahead.”
