IDP Education Ltd suffered its worst-ever single-day stock plunge on Tuesday, with shares falling 48.3% to A$4.11 — the lowest level in nearly eight years — after issuing a profit warning driven by tightening student visa regulations in key international markets.
The Australian-based company, which co-owns the globally recognized IELTS English language test alongside the British Council and Cambridge University Press & Assessment, slashed its fiscal 2025 earnings forecast to A$115–A$125 million. This figure is almost 50% lower than the previous year and significantly below market expectations of A$166.3 million (as projected by E&P Capital).
The projected decline stems from a dramatic 28–30% expected fall in international student placements and an 18–20% drop in language testing volumes. IDP attributed the downturn to more restrictive immigration policies in countries such as Australia, Canada, and the UK, alongside growing anti-immigrant sentiment in the United States. The company also cited uncertainty following recent elections across these regions.
Adding to the pressure, U.S. policy changes under former President Trump, including efforts to cancel student visas, are compounding fears among prospective international students.
Analysts at Sandstone Insights expressed surprise at the scale of the impact, stating they had previously believed IDP’s targeted focus on genuine student mobility would offer resilience amid global education market shifts.
In response, IDP CEO Tennealle O’Shannessy called for more consistent and welcoming student visa policies, adding that the company is actively collaborating with universities and governments to advocate for more stable international education frameworks.
