CU reports revenue growth, lower expenses By Lauren Pierce Oct 16, 2026 By Sean Smith
CLEMSON — Clemson University’s revenues increased nearly 3 percent while expenses declined slightly during the 2025-26 fiscal year, according to a financial update presented Thursday to the university’s Board of Trustees Finance and Facilities Committee.
Kelly Collins, interim senior vice president for finance and operations and chief financial officer, presented the results, outlined budget planning for fiscal year 2027-28 and provided an update on the university’s new Workday system.
Clemson’s total revenues increased 2.9 percent to approximately $1.76 billion in fiscal year 2026, up from $1.7 billion the previous year, Collins said. Total expenses decreased 0.3 percent to approximately $1.55 billion.
The university’s revenue growth was driven primarily by increases in student tuition and fees, state appropriations, gifts and grants. Net student tuition and fee revenue increased 4.9 percent to $612.7 million mostly due to increased enrollment, while state appropriations rose 9.5 percent to approximately $300.9 million. Gifts and grants increased 16.3 percent to $134.8 million.
However, “grants and contracts” revenue declined 16.5 percent, falling from approximately $328 million in fiscal year 2025 to $281.5 million in fiscal year 2026, according to backup material.
Collins said the decrease reflected broader changes and pressures across the sector rather than circumstances specific to Clemson.
On the expense side, compensation and employee benefits declined 1 percent to approximately $901.5 million, while services and supplies expenses also fell 1 percent to about $423.9 million.
Collins attributed much of the decrease in compensation and benefits to a $34 million reduction in noncash pension expense, which offset increases of $12.7 million in cash compensation and $10.4 million in fringe benefit expenses.
Lower travel and contract services costs contributed to the decline in services and supplies spending. Collins said those savings were partially offset by increases in utilities and depreciation and amortization.
“Our approach to expense management has allowed us to improve our overall financial performance in FY26 relative to (FY)25,” she said, adding the university expects inflationary costs to continue putting pressure on expenses and will need to maintain its focus on financial oversight this fiscal year and FY28.
Clemson’s current budget continues efforts to align spending with anticipated revenue growth, Collins said, with financial performance monitored monthly to help with future budget decisions. Trustees approved a $1.81 billion budget for fiscal year 2026-27 while keeping undergraduate tuition frozen for in-state residents for a seventh consecutive year.
In response to a trustee’s question about projected undergraduate enrollment growth, Collins said the university is modeling several scenarios and taking a “conservative” approach “somewhere in the 0.5 to 1 percent growth range.”
The university also anticipates its upcoming credit ratings will affirm its financial strength. Collins said the ratings are expected before the board’s February meeting.
'A huge undertaking’
Collins also updated trustees on Workday, the university’s new human resources and financial management system, which launched for faculty and staff July 1.
She described the launch as the beginning of a continuing process to improve efficiency, reporting and the user experience as employees become more familiar with the system.
“This was a huge undertaking, not only by our central teams but also for all of campus who are getting used to working in a new system after 20 years of working in our legacy system,” Collins said.
Among the early benefits, she said, is having a single system of record for human resources and finance, replacing multiple systems that did not communicate effectively with one another.
Workday also provides enhanced financial planning and position-budgeting tools, including requirements for funding to be available in a position budget before a hire is made. The system allows the university to reserve payroll funds for their intended purpose, a capability Collins said was not available in the previous system.
“Clemson is financially strong, and Workday gives us better tools to sustain that position, while also improving our ability to monitor our commitments and providing guardrails to support financial discipline,” she said.
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