Graduate Business Applications Fall 10% Worldwide, but Quality Holds, GMAC Says
Applications to graduate management education programs fell 10 percent worldwide this cycle, with global MBA applications down 13 percent, according to the Graduate Management Admission Council's newly released Application Trends Survey. GMAC says selectivity, projected yield, class size and the academic qualifications of incoming students stayed consistent with last year.
- Global GME applications fell 10 percent and MBA applications fell 13 percent, after two years of growth, according to GMAC.
- U.S. GME applications dropped 25 percent, while Europe (excluding the U.K.) and East and Southeast Asia grew.
- Selectivity, projected yield, class size and incoming students' qualifications were consistent with last year.
- The share of incoming students with merit-based scholarships rose from 37 percent to 45 percent globally.
- Only eight percent of GME programs report no mechanism for incorporating AI into their curricula.
A split between regions and program types
The decline follows two consecutive years of meaningful growth. According to GMAC, the picture varied sharply by geography and program type, which matches an emerging pattern the organization flagged in research published earlier this year.
Programs in Europe (excluding the U.K.) and in East and Southeast Asia grew their application volumes, supported in large part by international demand. The United States, the United Kingdom and Canada, described by GMAC as the traditional English-speaking hubs, saw declines. U.S. GME applications dropped 25 percent. Schools in those markets were especially likely to cite new visa policies and practices as a factor.
Business master's programs again fared better than MBA programs. GMAC attributes the gentler slide to schools' continued investment in building domestic pipelines that reduce reliance on international applicants.
Funding pressure in the U.S. and rising scholarships
GMAC points to a policy shift on financial resources for higher education as a headwind unique to U.S. graduate business candidates. New caps on annual and lifetime federal lending have made borrowing for a graduate management degree more constrained than for other professional degrees facing less restrictive caps under the same policy.
At the same time, financial assistance is growing. The share of incoming students receiving merit-based scholarships rose from 37 percent to 45 percent globally, a statistically significant increase, with the strongest gains in the U.S. and Canada. Among responding programs in North America, more than half of incoming students were offered merit-based assistance. GMAC says this may close more of the affordability gap than many candidates assume.
GMAC CEO Joy Jones said candidates are weighing cost and return more closely than ever. "What hasn't moved is the caliber of students schools are admitting: incoming classes are as well qualified as last year's," she said.
AI in the classroom
The survey also covers how schools teach artificial intelligence. GMAC reports that adoption is nearly universal: just eight percent of GME programs globally have no mechanism for incorporating AI into their curricula. Hands-on experiences such as business simulations and applied projects are now the most common approach.
This lines up with other GMAC research, which finds that corporate recruiters expect AI skills to become graduates' most valued skills over the next five years. Programs and prospective students agree that hands-on experience matters most, according to GMAC.
What it means for candidates
GMAC frames the results as a case for prospective students. "In many ways, this is an excellent time to consider a graduate business degree," Jones said, pointing to programs covering a meaningful share of tuition for students who need it most and to employer demand for skills in applying AI and leading people. "For candidates on the fence about whether the right moment is now, the fundamentals are lining up in their favor," she said.
The findings come from a survey conducted between June and August, with 1,162 programs at 314 business schools in 39 countries responding about the 2026-2027 academic year. The full report is available at gmac.com.