Deloitte’s revenue drop sparked by ‘complex’ operating environment, it says

The big-four consulting firm recorded revenue of $2.55 billion for the 2025 financial year, marking an 8.3 per cent drop on the year prior as it navigated turbulent economic waters.

“Evolving client needs, heightened global volatility and the accelerating pace of technological advancement have all contributed to a complex operating environment throughout FY25,” Deloitte Australia chief executive Jo Gorton said.

“While these factors have undoubtedly impacted business outcomes, they have also created significant opportunities for people to work alongside our clients on transformational projects.”

Volatile tariff policies, accelerating AI development and economic turbulence have hampered firms throughout the 2025 financial year, but Deloitte said relief could be on the horizon as domestic economic conditions strengthen.

Strong demand remained across Deloitte’s core practices, including business and private tax advisory, regulatory services and technology modernisation, and its banking, capital markets, investment management and technology sectors.

Technology and transformation was Deloitte’s largest revenue source ($1.086 billion), followed by strategy, risk and transactions ($651.7 million), audit and assurance ($511.1 million) and tax and legal ($345.7 million).

In response to downward revenue pressures, Deloitte said it pared back equity partner earnings to 8.5 per cent, broadly in line with the revenue downgrade experienced in 2025.

The firm added it was committed to building its employees’ skills and capabilities amid the volatile economic environment, with a focus on strengthening AI fluency amongst its 12,080-strong workforce.

“From early-stage ideation through to document creation, analysis and technology delivery, AI tools are helping improve work quality and efficiency,” its annual impact report said.

A central aspect of the firm’s AI program was its in-house GenAI platform, ‘MyAssist,’ which Deloitte described as a “fundamental tool” used by an average of 7,000 people each month.

The tool aims to streamline routine tasks such as research, analysis, data handling and coding, the firm said.

Deloitte also rolled out its ‘prompt like a boss’ program for employees to build their workers’ AI-whispering skills, covering tools from spreadsheet analysers to image prompting.

The firm also noted progress on its Gender Action Plan, noting that 40 per cent of its board and executive were women, as well as 47 per cent of their business and growth executive teams.

Its average total remuneration gender pay gap was 11.5 per cent over the 2024-25 reporting period, lower than the 13.3 per cent reported for the prior period.

“We are taking steps in the right direction, but there is more work to be done, particularly around increasing women’s participation in technology careers,” the report read.

Deloitte added that it continued to focus on promoting ethical conduct amongst its staff by keeping a non-retaliation policy in place to protect those who report concerns, and by following up on reported matters.

In 2025, 146 concerns were investigated and closed out while 101 were substantiated with actions including counselling and training (21), reprimands (66) and firm exit (14).

The top substantiated concerns fell into the categories of disrespectful treatment, violation of company policy or harassment.

“Our focus on building a ‘speak up’ culture is a continuing priority for us,” the firm wrote.

“Reported matters are taken seriously, followed up and where appropriate, acted upon.”