BigLaw firms perform well across the board but see challenges with collections, new Wells Fargo data shows
BigLaw firms have continued to perform well through the first half of 2026, with revenues increasing 12.4% because of accelerating demand, billing rate growth and increased productivity, according to new data from Wells Fargo’s Legal Specialty Group. (Image from Shutterstock)
BigLaw firms have continued to perform well through the first half of 2026, with revenues increasing 12.4% because of accelerating demand, billing rate growth and increased productivity, according to new data from Wells Fargo’s Legal Specialty Group.
Wells Fargo, which surveyed more than 140 Am Law 200 law firms for its latest six-month survey, also noted that while average standard rates increased double digits in the first half of the year, converting those rates into collections has become more difficult. Revenues only reflect 7.3% realized rate growth, compared to 9% this time last year.
“While discounting accounts for a portion of this shortfall, the larger component is the amount of inventory that is accumulating, primarily on work that has not yet been billed,” according to Wells Fargo. “This is not uncommon in strong transactional markets, but we have also heard that clients are scrutinizing bills more closely and are paying more slowly.”
Wells Fargo’s data showed that inventories increased 17.7%, and the inventory collection cycle—which is described as the number of days that it takes to collect fees once work is performed—slowed by 5% overall.
“This was a marked change from this time last year when inventories grew in line with collections,” Wells Fargo said.
Among its other results, Wells Fargo pointed out that lawyer compensation increased 8.9% in the first half of 2026 but slowed from the 10.5% growth experienced this time last year.
See also:
Surge in BigLaw’s first-quarter revenues, new Wells Fargo data shows
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