KPMG has narrowed the performance gap with its larger competitors, according to recent figures, which highlight that the firm achieved the strongest revenue growth among the Big Four accounting and consulting firms.
For the 12 months ending September 30, KPMG posted a global revenue of $38.4 billion, reflecting a 5.4% increase from the previous year. After adjusting for currency fluctuations, the rise stood at 5.1%. This performance surpassed growth at Deloitte, EY, and PwC, with each of KPMG’s key business divisions – audit, tax, and advisory – showing growth rates that were among the highest in the sector. This strong revenue increase helped close the gap that had grown in recent years between KPMG and its larger counterparts.
The advisory businesses of the Big Four have struggled in recent years, particularly due to a slowdown in demand for technology services and a lack of merger and acquisition activity. However, KPMG saw stronger performances in its more stable audit and tax sectors. The firm’s audit revenues increased by 6.2% to $13.4 billion, while its global tax and legal services business grew by 9.6%, reaching $8.7 billion.
Bill Thomas, KPMG’s Global CEO, attributed the growth to investments in technology, staff training, and expanding business areas like artificial intelligence and environmental, social, and governance (ESG) services. These investments are part of a three-year program that Thomas will oversee, following the extension of his leadership term until September 2026. He also highlighted the firm’s commitment to a multidisciplinary model that has fostered increased synergies and cross-border collaboration.
However, the growth numbers vary across different regions. In the Asia-Pacific region, where the firm has faced challenges such as an economic slowdown in China and political pushback against the Big Four in Australia, local currency growth was a modest 0.5%. KPMG also reduced its headcount in the region by 2% during the year.
In contrast, the Americas, KPMG’s largest region, saw a 4.2% revenue increase to $15.2 billion. However, the firm still made cuts to its workforce, including more selective hiring, tougher performance reviews, and some layoffs in certain advisory sectors, all aimed at safeguarding partner profits.
