Wells Fargo’s Authorized Specialty Group is out with its six-month 2026 survey, and by the top-line numbers, Biglaw is having certainly one of its greatest years on document. Revenue across the Am Law 200 climbed 12.4 p.c by June, forward of final yr’s 11.2 p.c tempo and among the many strongest first halves the group has ever tracked. Internet earnings jumped 17.5 p.c. Earnings per fairness accomplice rose nearly in lockstep — companies have gotten superb at not minting new fairness companions. The Am Legislation 50 led all the things, as per normal.
However the cash on the web page shouldn’t be the identical as cash within the financial institution.
Commonplace billing charges rose double digits once more, but realized price progress got here in at simply 7.3 p.c, down from 9 p.c this time final yr. A bit of of that hole is discounting. Most of it’s stock: work that’s been carried out however not billed, or billed however not paid. Inventories grew 17.7 p.c throughout the Am Legislation 200 — sooner than income itself — and grew quickest on the very high, up 19 p.c for the Am Legislation 50. The gathering cycle, the variety of days it takes to truly receives a commission, slowed by 8.5 days. Shoppers, Wells Fargo notes, are eyeballing their invoices tougher and reducing the checks slower.
None of which ought to shock anybody who learn the Q1 report. Again in April, the identical assortment cycle had already slowed 6.5 days, Am Legislation 50 stock was already up 19 p.c, and Wells Fargo’s personal marketing consultant pinned the lag on the AI gold rush — all these information heart offers and pre-IPO scrambles that hadn’t been collected on but. Three months later, the stock is larger and the money is slower. Wells Fargo credit the AI capital-spending frenzy for a lot of the exercise, and that half is actual. However getting the deal carried out nonetheless isn’t the identical as getting paid for it.
Earlier: Biglaw Discovers That Charging $2,000/Hour Is Easier Than Actually Collecting It
2025 Was A ‘Very Good Year’ For Biglaw, And ‘If The Economy Holds Up,’ 2026 Could Be Too
Small Law Firms Billing More Hours Per Case — The Opposite Of What AI Promised — But At Least They’re Getting Paid!
Kathryn Rubino is a Senior Editor at Above the Legislation, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are one of the best, so please join along with her. Be happy to e-mail her with any suggestions, questions, or feedback and comply with her on Twitter @Kathryn1 or Bluesky @Kathryn1
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