IDP Education (ASX:IEL) announced its financial results for the first half of 2026, reporting a resilient performance characterised by a significant upgrade to its full-year earnings guidance.
The company has raised its FY26 adjusted EBIT forecast to between $120 million and $130 million, driven by rigorous cost control and a focus on high-yield revenue streams.
For H1 FY26, IDP recorded revenue of $462.2 million, a 6% decline compared to the previous period.
The dip was primarily due to a 25% drop in student placement volumes and a 7% decrease in language testing volumes.
However, the company offset some of these volume pressures through improved pricing power, with student placement yields rising by 15%.
Adjusted EBIT for the half stood at $87.5 million, down 14%, reflecting the broader volume declines.
A core component of the result is IDP’s ongoing transformation program, which aims to create a leaner, technology-enabled business.
The company is currently on track to achieve a $25 million net reduction in its cost base for FY26, having already reduced direct costs by 6% in the first half.
CEO Tennealle O'Shannessy noted that the "strong execution of strategy" is simplifying the operating model while maintaining high customer trust, evidenced by a student net promoter score remaining above 70.
At the time of reporting, IDP Education’s share price was $5.24.