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EY reported a 4 per cent increase in annual global revenue on Wednesday, as an artificial intelligence-driven rebound in consulting work was offset by shrinking activity in its strategy and deal advisory business.
The Big Four accounting and consulting firm brought in revenue of $53.2bn for the year to the end of June, up from $51.2bn in the previous year and close to the same rate of growth in constant currency terms.
EY is the second of the Big Four to report, against a backdrop of continuing economic growth but spending restraint by clients. Earlier this month, rival Deloitte posted revenues up 4.8 per cent to $70.5bn, with its strongest growth in strategy, risk and deal advice.
By contrast, EY’s Parthenon business — which combines advising senior executives on strategy with providing due diligence and other assistance on mergers and acquisitions — shrank 0.4 per cent globally in the year to June. It contributed $6.2bn in revenue, the firm said.
Mergers and acquisitions activity had remained subdued throughout EY’s fiscal year ending in June, given uncertainty over tariffs and the broader global economy, although it has picked up in recent months as interest rates have fallen. The firm merged its Parthenon strategy business with the rest of its transactions business during the financial year.
EY’s consulting business posted stronger growth of 5.2 per cent, for revenues of $16.4bn. The firm said AI-related projects were a key driver as the group helped companies transform their businesses with the technology or advised on governance frameworks for using AI.
The fastest-growing part of EY was its tax business, in which revenue grew 5.5 per cent to $12.7bn.
The firm had planned to combine its strategy and transactions and consulting businesses with parts of the tax business and spin off the new entity as a public company in 2023, but the plan collapsed amid internal infighting.
Under Janet Truncale, who took over as global chief executive in July 2024, EY has talked up the benefits of having these advisory businesses under the same roof as the firm’s historic audit business, which remained its largest business last year with $17.9bn in revenue, up 3.5 per cent.
EY’s annual revenue announcement revealed its growth was strongest in Europe and the Middle East, at 5.5 per cent, in contrast to Deloitte, where it was the weakest at less than 1 per cent.
EY also grew its global headcount in the past year, in contrast to the previous 12 months, when it had shrunk for the first time in more than a decade. The firm employed 406,209 people at the end of June, up 3.4 per cent. The strategy and transactions business was the only part of EY to cut headcount.
