BigLaw Revenue Surge: Q1 Starts Off Strong
BigLaw firms kicked off 2026 with a strong first quarter, as revenue climbed 13.1% year-over-year, driven largely by rising billing rates alongside stronger-than-expected demand and a rebound in lawyer productivity. Demand grew across key practice areas, including litigation and regulatory work, while firms continued to expand headcount despite increased expenses, signaling sustained financial momentum and a promising outlook for the year ahead. The largest firms, in particular, continued to outpace the market with the most significant rate increases, further widening the gap across the industry.
MARKET MOVEMENTS
Cooley taps Kirkland partner, Norm Armstrong, to lead antitrust practice in DC
WilmerHale has hired former SEC deputy director Jason Burt as a partner in Denver, strengthening its regulatory and enforcement expertise
Paul Weiss adds partners, Jim Cole (formerly Latham) and Aisha Lavinier (formerly Kirkland), to new Houston office
Pillsbury has opened a Boston office with a five-lawyer team, including veteran litigator Robert J. Gilbert from Latham
FIRM SPOTLIGHT - WITHERS WORLDWIDE
Withers is a global law firm founded in 1896, with offices across the U.S., U.K., Europe, Asia, and the Caribbean. Originally a London-based private client practice, the firm expanded significantly following its 2002 merger with Bergman, Horowitz & Reynolds, growing its presence in the U.S. and Asia. Withers specializes in areas such as tax, trusts and estates, litigation, employment, family law, and corporate transactions, primarily serving individuals. Recognized by Chambers High Net Worth and Legal 500, the firm is known for its broad expertise, client-focused approach, and ability to deliver tailored legal solutions across jurisdictions.
INDUSTRY INSIGHTS
Twenty firms have achieved compound annual growth rates (CAGR) in revenue of greater than 8% since fiscal 2000-2025: Kirkland, Ropes & Gray, Dentons, Goodwin, DLA Piper, Latham, Hogan Lovells, Paul Weiss, Gibson Dunn, King & Spaulding, Covington, Greenberg Traurig, Wilmer, Reed Smith, Sidley, Wilkie, White & Case, Simpson, Paul Hastings, and Cooley. Eleven of those have annualized growth rates of greater than 9%. Five have CAGR figures of between 10.7% and 11.7%. And one firm’s figure clears the rest by 1.6 percentage points: Kirkland, at 13.25%
Seyfarth Shaw is on the doorstep of being a $1 billion firm, after a year in which it grew revenue by 6.3% to about $990.7 million. They achieved double-digit gains in profits: up by 14.6%, to almost $2 million per partner, and similar increases in net income (14.1%) and average comp for all partners (12.1%, to $1.14 million). Amid a 2% bump in attorney headcount to 913 lawyers, revenue per lawyer increased by about 4% to $1.08 million.
The percentage of women holding tech-focused C-suite positions at the largest U.S. law firms is just under 20%, though women hold parity in roles centered on innovation. Women held 35 out of nearly 180 C-suite tech roles at BigLaw firms, or 19.6%, spread across 32 law firms.
The collective valuation of the Am Law 100 hit $423 Billion, up 24% from the previous year and the first time exceeding $400 Billion.
Davis Polk Launches LA Office with Skadden Veteran Jason Russell
Davis Polk & Wardwell is expanding its California footprint with the launch of a Los Angeles office, led by longtime Skadden partner and former LA office head Jason Russell. Joining the firm’s civil litigation practice, Russell brings decades of experience handling complex commercial disputes, particularly in the sports, entertainment, and technology sectors. The new office, set to open a permanent Century City location in 2027, will initially include a small team of attorneys, with plans to grow in the coming months as Davis Polk strengthens its presence in the region.
Widening Profit Gap Reshapes Law Firm Talent Competition
Elite law firm profits continue to surge on the back of record-high billing rates, widening the compensation gap between Am Law 50/100 firms and Second Hundred and smaller firms. Industry observers say that while lower-tier firms struggle to compete directly for top talent due to profitability disparities, they can remain competitive by adjusting compensation structures, refining practice mix toward higher-margin work, and emphasizing culture and flexibility. Some firms are responding by enhancing bonus pools, increasing billing rates, and expanding nonequity partner tiers to better reward performance and attract laterals. However, analysts note that the “flywheel” effect of higher profitability at top firms continues to amplify their advantage, making sustained talent competition increasingly difficult.
