BigLaw firms see uptick in demand, expenses, new report shows
In the first six months of 2026, BigLaw law firms have experienced “rare” growth in demand and double-digit gains in revenue, according to a new Citi Global Wealth at Work Law Firm Group report. (Photo illustration by Sara Wadford/ABA Journal/Shutterstock)
In the first six months of 2026, BigLaw law firms have experienced “rare” growth in demand and double-digit gains in revenue, according to a new Citi Global Wealth at Work Law Firm Group report.
Demand was up 4.2% through the first half of the year, which Citi said is higher than the historical growth of 1.5% or 2%, according to a story from Law.com. This increase in demand helped increase revenue across firms by 11.7% relative to the first half of 2025.
“It’s rare we see above 3.5% demand growth,” Daniel Greenfield, the director of Citi’s firm advisory group, told Law.com.
He characterized large-cap and middle-market mergers and acquisitions activity, as well as work in the industrials, healthcare and technology sectors, as primary drivers.
In contrast with these gains, Citi also noted that expense increases were at 9.7% in the first six months of 2026, with 8.9% increases in compensation, Law.com reports. Citi said BigLaw’s expansion of income partner ranks and recruiting of specialists, as well as spending on real estate and artificial intelligence could be factors in those increases.
At the end of 2025, firms’ spending on AI accounted for 0.25% of their revenue, Law.com reports. At the end of the previous year, it accounted for only 0.11% of revenue.
“It’s still small, but it’s more than double what it was in 2024,” Greenfield told Law.com.
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