IDP reported a 9% drop in revenue to AUD $795.4m for FY26, warning that student numbers will likely fall further as the education market stabilizes. The warning came as IDP – one of the three co-owners of IELTS – reported a 9% fall in revenue to AUD $795.4m for FY26.
Placement numbers fell 27% over the past year, while testing volumes dropped 8%. Language teaching volumes increased 1%, marking the only area of growth. The company earned more from each student and test than in previous years, helping to offset some of the volume decline.
CEO Tennealle O’Shannessy said the focus has been on managing financial performance while reducing costs. She stated, “Our focus this year has been to manage financial performance whilst progressing the multi-year transformation program to reduce cost, simplify the business and position for future growth.” She added, “The team has executed well in a dynamic operating environment with a focus on profitable revenue, and an ongoing commitment to quality and yield.”
The company cut around 1,250 roles, or 20% of the workforce, during the year. It also reduced its IELTS testing network from around 1,500 venues to fewer than 600. Costs were reduced by $32m during FY26, beating a $25m target. The company plans to cut another $15m in the coming year.
Quality and trust remain high
Despite the fall in enrollment, IDP said trust levels among students stayed strong. More than 90% of surveyed students said they trusted or highly trusted the company, while its student Net Promoter Score remained above 70.
Investments in technology and AI-supported counselling are helping students find better matches with courses and universities. The company also expanded its student placement offering into Malaysia and the UAE and opened 13 new IELTS centers in China.
O’Shannessy noted that universities are placing more importance on student quality and compliance, creating a potential opening for IDP. She explained that universities place increasing importance on student quality, compliance and enrolment certainty, and students rely more on trusted advice to handle an increasingly complex international education setting. “IDP’s trusted role continues to grow.”
The company believes its market-leading position and university partnerships will allow it to deepen relationships and capture more value across the student journey. “Our market-leading position, trusted brands, longstanding university partnerships and proprietary data position IDP strongly for the future,” she said. “This positions us to deepen our relationships with students and university partners, capture more value across the student placement journey, and drive sustainable growth through a higher-quality, more resilient earnings profile.”
While the current shift in the market is causing short-term revenue dips, the company expects to drive sustainable growth through a higher-quality, more resilient earnings profile in the future. Stabilizing the student market is critical for long-term success.
Broader concerns about international mobility continue to impact enrollment trends. Visa uncertainty scares away top students.
