Revenue, billing rates and demand all up at law firms in 2025, survey shows
Law firms experienced another year of strong performance, with industrywide revenue increasing 12.6% in 2025 and matching the pace set in 2024. (Image from Shutterstock)
Law firms experienced another year of strong performance, with industrywide revenue increasing 12.6% in 2025 and matching the pace set in 2024, according to the results of a year-end 2025 survey by Wells Fargo’s Legal Specialty Group.
Am Law 50 firms experienced the strongest revenue growth in 2025—up 13.3%—followed by the rest of the Am Law 100 firms, which experienced growth of 11.9%, according to the survey’s results. Revenue growth was up 8.9% for firms in the Am Law Second Hundred.
Growth in billing rates at firms was the primary contributor to growth in revenue, according to the survey’s results. Average standard rates increased 9.6% year over year, up from the 9.1% increase in 2024. The growth in standard rates was highest for Am Law 50 firms, up 10.4%.
The survey measured other factors, including demand, or how many billable hours lawyers logged, in 2025. Demand increased 3.5% in 2025, which was basically even with the growth in demand the previous year. Am Law 50 firms experienced a 3.6% growth in demand, while the rest of the Am Law 100 experienced a 3.7% growth in demand.
“Demand was solid across many practice areas, particularly megacap M&A, debt capital markets, investment funds, litigation, employment, infrastructure, trade and real estate,” Wells Fargo, which surveyed more than 130 firms, also reported. “Though lagging for much of the year, middle market M&A recovered in the fourth quarter.”
Law.com and Law360 had coverage.
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Law firms saw surge in demand and profits in 2025, new report says
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