PwC Revenue Growth Trails Competitors Amid Middle East Turmoil

PricewaterhouseCoopers (PwC) announced a global revenue increase of 3.5% in local currency for its fiscal year ending June 30, 2026, reaching US$60.2 billion[16][18][19]. This growth rate lagged behind its main competitors, Deloitte and EY, underscoring how regional conflicts can directly affect global business performance[19].

The slower growth for a major professional services network like PwC signals the tangible economic repercussions of geopolitical events, particularly in vital economic regions. This situation highlights the vulnerabilities global consulting firms face when operating in areas affected by instability, impacting their ability to meet financial targets and sustain competitive momentum.

What the records show

PwC's reported 3.5% growth to US$60.2 billion contrasted with the performance of its peers. Deloitte achieved a 3.8% increase in local currency, with revenues totaling US$74.5 billion for its fiscal year ending May 31, 2026[20][21][22]. EY recorded a 4.7% increase in local currency, bringing its global revenues to US$57 billion for its fiscal year ending June 2026[11][12][13][14][15].

A significant factor in PwC's slower overall growth was its performance in the Europe, Middle East, and Africa (EMEA) region, where revenue saw a minimal increase of just 0.7% at constant exchange rates[19]. This subdued growth in EMEA was largely attributed to a combination of geopolitical instability from the ongoing 'war in Iran,' disruptions in the Strait of Hormuz, and a slowdown in government projects in Saudi Arabia[19].

The timeline of regional impact

The 'war in Iran' has generated widespread regional conflict and economic fallout[19]. Iran's actions included attacks on at least 15 container ships in the Strait of Hormuz, a crucial waterway for oil supply[1][3][24]. These attacks threatened the navigability of the strait, leading to significant maritime disruptions and a spike in oil prices[1][3][7][25][26]. Additionally, Iranian-backed Houthi militia attacks in Yemen contributed to the regional instability, which led to events such as Saudi Arabia canceling its 2026 'Davos in the Desert' conference[2][5]. The broader conflict and its impact on regional stability directly suppressed business and consulting demand in the Middle East[19][6][8][9][10].

What changed and for whom

PwC's UK legal entity, which includes its Middle Eastern businesses, faced tougher market conditions across its risk and consulting practices[19]. Consulting revenues were down 9.8%, and risk revenues decreased by 8.9%[19]. Marco Amitrano, senior partner at PwC UK and the PwC Middle East alliance, noted that UK revenue growth was partially offset by “a more difficult trading environment in the Middle East”[19]. Adding to the challenges, Saudi Arabia suspended new contracts for Western consultancies and delayed some payments in May 2026[29][30][31][32][33]. This decision was part of a reassessment of spending priorities by the Saudi government due to a growing fiscal deficit, exacerbated by the regional conflict, affecting major advisory firms[19][32].

What PwC has said publicly

PwC Global Chairman Mohamed Kande acknowledged the difficult environment. He stated the firm achieved “robust growth, even in the face of geopolitical and economic uncertainty,” while investing US$3 billion across its network, specifically in AI and technology[19]. Despite these investments, PwC's growth trajectory still lagged behind its competitors, who also reported strong demand for AI-related services[19].

What we could not confirm

We could not confirm the specific, quantified financial losses PwC incurred from Saudi Arabia's suspension of new contracts or delayed payments. The duration for which Saudi Arabia plans to maintain these contract suspensions also remains unconfirmed. Additionally, the specific details of any revised strategic adjustments PwC may be implementing for the EMEA region in response to the sustained geopolitical instability were not specified in the available records.