EY, one of the largest accounting and professional services firms, reported a 10% increase in average partner bonuses to a record £870,000 for the year ending July 3, 2026. The firm posted pre-tax profits of £702 million in the UK, with fee income rising 2% to £3.86 billion, up from £3.78 billion the previous year.

The rise in partner pay follows a reduction in the size of EY’s UK partnership, including the dismissal of approximately 30 partners and the transition of some partners into salaried roles, which do not share in firm profits. This restructuring comes after a fall in partner payouts in 2024, attributed in part to over-hiring during the pandemic.

EY’s revenue growth was mixed across its business segments. The global strategy consulting arm, EY-Parthenon, saw a 6% increase in revenue, while tax and assurance services each grew by 3%. However, overall consulting revenue declined by 3%, reflecting a downturn in the consulting industry. Despite this, EY significantly expanded its workforce, hiring 2,300 new employees and making over 3,700 promotions during the year.

The firm’s artificial intelligence (AI) business experienced rapid growth, with a 46% increase in sales, boosted by a $1 billion (£750 million) investment in partnership with Microsoft to enhance AI capabilities internally. This investment forms part of EY’s broader strategy to integrate technology and innovation to support future growth amid challenging market conditions.

Total employee bonuses at EY also increased by more than 25%, although the average pay rise for employees was around 5.2%, considerably lower than the rise in partner payouts. The company described its overall financial performance as "solid," despite the challenging economic environment.

EY’s tax contribution to the UK economy exceeded £1.3 billion for the full year. The firm also scaled back its graduate recruitment, reducing the intake from approximately 1,800 new hires in 2023 to 1,600 in 2024. Anna Anthony, EY’s managing partner, emphasized the firm’s continued focus on talent and technology investments despite the mixed results across business areas.