Ernst & Young reported combined global revenue of $49.4 billion in the fiscal year ending June 2023 across its international network, one of the biggest increases in EY's history despite the cancellation of the firm's plan to spin off its consulting practice.
The Big Four firm said Wednesday that its tax function saw revenue increase 12.2% to $12.1 billion, while the assurance function grew 11.0% to $15.1 billion. The consulting practice grew 21.6% to $26.2 billion, and the strategy and transactions practice increased 8.4% to $6.1 billion.
EY shelved its plan in April for splitting off the consulting practice into a publicly traded company amid internal disagreements among partners over compensation and how to handle the tax and audit practices (
"I am very proud of EY growth this year," said EY global chairman and CEO Carmine Di Sibio in a statement Wednesday. "Guided by a commitment to create long-term value for all stakeholders, the organization is seeing the result of investment in pivotal alliances, cutting-edge technologies, and, most profoundly, the continuous upskilling of EY people. EY teams have supported thousands of clients to navigate challenging global economic conditions, working with them to overcome obstacles and transform their businesses for success. At the same time, EY people are playing their part in tackling societal challenges — from progress in reducing carbon emissions to positively impacting 46 million lives this year through corporate responsibility initiatives."
He announced his intention to retire in June after his plan to split the firm was canceled.
Revenue in the Americas grew 12.9% to $23.6 billion. In the Europe, Middle East, India and Africa region, revenue grew 16.9% to $18.3 billion in local currency terms. In the Asia Pacific region, it grew 11.7% to $7.5 billion.
EY invested $3.6 billion in FY23 on audit quality, innovation, technology and people, including $1.4 billion focused on artificial intelligence and the launch of its EY.ai platform.
EY Tax Copilot, a global employee education program created in collaboration with Microsoft, was introduced to support tax and law professionals in the use of technology powered by generative AI.
EY launched an intelligent payroll chatbot earlier this year to answer employee payroll questions and enhance the employee experience.
EY also introduced an e-invoicing solution, GTES, a cloud-based Software-as-a-Service product to provide invoices, transaction reporting and tax returns with country-specific tax administrations around the world.
The firm said it made significant progress on a science-based decarbonization plan, increasing the use of renewable energy and leveraging technology for carbon tracking to achieve its goal of becoming net zero by 2025. EY said it has reduced absolute emissions globally by more than 43%, even as the organization has grown in terms of both revenue and people by over 40% against a FY19 baseline.
Diversity, equity and inclusion continue to be a strategic priority, and the global leaders of the firm signed a
In FY23 36% of partner, principal, executive director and director promotions were women, and this year's class of 2,216 total promotions to those levels was one of the largest ever.
Headcount across EY globally also continued to grow, increasing 8.2% in total EY member firm partners and people to 395,442 globally. This past year 4.7 million people applied to work at the firm, from which 122,000 employees were hired, with an overall retention rate of 79.3%.
The additions included 118,964 in assurance, 76,873 in tax, 121,973 in consulting, 26,397 in strategies and transactions, and 51,235 in practice support.
