KPMG Australia releases FY26 result; streamlines business

24 August 2026

• KPMG Australia reports total revenue of $2.257 billion, down 1% on the prior year.
• Revenue grew in four out of five divisions: led by Audit & Assurance, up 11.0%, and Tax & Legal, up 10.9%.  
• Softer market conditions and a continued reduction in government business continued to impact Consulting revenues.
• Work delivered to more than 13,000 clients.
• Amid continued weak economic conditions and a challenging operating environment, workforce to reduce by 5% following a review of the firm’s cost base and future workforce needs.

For the year ended 30 June 2026, KPMG Australia recorded total revenue of $2.257 billion, down 1% on the previous period. A continuation of soft market conditions, as well as a continued reduction in use of consultants by governments resulted in a 16.9% decrease in revenue for the Consulting business compared to the prior year. Average equity partner remuneration declined 13% on the prior year.

Four of KPMG’s five divisions recorded revenue growth, ranging from strong to modest.

• Audit & Assurance revenue grew 11% compared to last year, with solid growth in External Audit and Assurance. Demand for ESG services continues to grow.
• Tax & Legal revenue grew 10.9% on the prior period following strong, ongoing investment in that business.
• Mid-Market & Private revenue grew 6.4% as strong growth across its audit business outpaced subdued demand for advisory services.
• Deal Advisory & Infrastructure revenue grew 3%, with some softening in certain infrastructure markets but growing opportunities in others such as energy transition.  Deal Advisory continues to see a healthy transaction market with strong growth in revenue.
• Consulting revenue declined by 16.9%.

Revenue contributions from the businesses (ex recoverables) were: Audit & Assurance $405 million, Tax & Legal $268 million, Mid-Market & Private $449 million, Deal Advisory & Infrastructure $342 million and Consulting $632 million, with another $10 million generated by smaller business units.

KPMG has reviewed its costs and future workforce needs in response to continued economic weakness, difficult market conditions and the impact of the firm’s conduct and whistleblower matters. As a result, the firm plans to reduce its workforce by approximately 5%, primarily across Consulting and Business Services. This includes 27 partners and around 360 employees. The firm will also begin consultation on a small number of award-based roles.

The firm is also simplifying parts of its structure to create more connected teams and align more closely with KPMG’s global advisory services. The Mid-Market & Private deals team will join Deal Advisory & Infrastructure, while its advisory team will join Consulting. These are changes to where the teams sit within the firm, not a change in the firm’s commitment to mid-market and private clients. They bring people with related skills closer together so clients can reach the expertise they need more easily, and teams can respond faster.

KPMG Australia CEO John Sams said: “This result reflects the resilience of our business and, above all, the commitment of our people in a very challenging year. They continued to deliver outstanding work for more than 13,000 clients, while supporting one another through a difficult period for the firm. I am incredibly thankful for their hard work, professionalism and care.

“Our total revenue was slightly lower than last year, and below our expectations. At the same time, four of our five businesses grew, with particularly strong performances from Audit & Assurance, and Tax & Legal.

“We also continued to invest significantly in technology and build our AI capability, helping our people work more effectively and deliver better outcomes for clients.

“We need to be clear about the outlook. We expect difficult market conditions to continue in FY27 and beyond.

“Economic growth is expected to remain subdued until at least 2028, affecting client investment and extending decision-making timeframes. The professional services sector is also changing rapidly as client expectations evolve, AI reshapes the way services are delivered and government spending on consultants remains lower. We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust.

“While these conditions are likely to persist, we remain focused on what we can control. We will continue to monitor performance closely, act when needed and consider carefully how the firm needs to be set up for the future.

“After careful consideration, we have made the difficult decision to reduce our workforce and restructure parts of the firm. This is not a decision that has been taken lightly, and we know it will have a very real impact on people.

“With demand for consulting remaining weaker, most of the roles affected will be in our Consulting business. Changes to our business and the professional services landscape have also reduced the need for some roles in Business Services.

“Our immediate focus is on treating everyone impacted with care, dignity and respect. We are providing practical support and making wellbeing support central to the process. We also recognise how unsettling this will be for colleagues across the firm, and we will continue to communicate openly and support them through this period of change.

“These changes are intended to put the firm on a more sustainable footing and ensure we remain aligned with the needs of our clients. We will keep assessing the operating environment and respond thoughtfully as circumstances change.

“For more than 130 years, KPMG has helped Australian organisations solve difficult problems and supported confidence in our capital markets. The changes announced today are an important step in the longer work of renewing and rebuilding our firm.

“Several internal and external reviews will be completed in the coming months. Their findings will inform the next phase of our Action Plan and help ensure we take all necessary action. We know there is more to do, and we will continue that work with openness, care and determination – focused on supporting our people, serving our clients and building a stronger, more trusted firm for the future.”