IDP Education Shares Plummet Amid Sector-Wide Challenges

IDP Education's share price plummeted by 27% after the company reported significant declines in profit and revenue, reflecting the challenges faced by the international education sector.

The company's net profit fell by 74% to A$13 million in 2025-26, down from A$51 million in the previous year and A$134 million the year before that. Revenue dropped by A$96 million to A$795 million, with losses of A$73 million from student placement activities and A$22 million in the language testing business.

IDP's CEO, Tennealle O'Shannessy, described the results as 'resilient' and 'in line with guidance', citing policy settings that reduced global student mobility. However, she emphasized the company's focus on cost control and its multi-year transformation program to reduce costs and simplify operations.

The company predicts a further 20-30% decline in international student commencements in its core markets this financial year, attributing this to visa uncertainty and students deferring decisions until outcomes are clearer. Navitas' agent perception survey found that soaring visa rejection rates in Australia, Canada, and the UK may be deterring genuine students from applying.