US Law Firm Revenues Soar 12.4% in First Half of 2026: Wells Fargo Survey

Large US law firms recorded double-digit revenue growth in the first half of 2026, driven by rising billing rates and strong demand, fuelled in part by work related to artificial intelligence (AI), according to new survey data released by Wells Fargo.

Revenues grew by an average of 12.4% during the first six months of the year, up from an 11.2% increase during the same period last year, according to data from Wells Fargo's Legal Specialty Group. Its survey covered more than 140 law firms, including 69 of the 100 highest-grossing firms in the US.

"It’s a very strong market," said Owen Burman, a senior consultant and managing director at the Wells Fargo unit. Demand growth of 4.8% is close to the highest level the group has recorded, he said. Demand, measured by the number of hours worked by lawyers, began accelerating in the second half of 2025 and has continued to grow, he said.

The broader economy is being driven by the "AI spending boom", which is helping to fuel demand for legal work advising on areas such as data centre development and capital raising, Burman said.

Billing rates also increased, although collections lagged. Inventories rose by 17.7%, while collection cycles slowed by 5% during the first half, according to the survey data. Collections in the second half of the year will "determine the extent to which this is just a good year or a great year", he said.

Lawyer headcount grew by 2.9%, down from 3.4% growth during the same period last year. Productivity grew by 1.8%, after falling by 1.4% in the first half of 2025. Expense growth remained unchanged from the same period last year at 9.6%.

Other recent data, including from the Thomson Reuters Institute, have also shown strong demand and rising billing rates this year.