Wells Fargo’s Legal Specialty Group is out with its six-month 2026 survey, and by the top-line numbers, Biglaw is having one of its best years on record. Revenue across the Am Law 200 climbed 12.4 percent through June, ahead of last year’s 11.2 percent pace and among the strongest first halves the group has ever tracked. Net income jumped 17.5 percent. Profits per equity partner rose almost in lockstep — firms have gotten very good at not minting new equity partners. The Am Law 50 led everything, as per usual.
But the money on the page is not the same as money in the bank.
Standard billing rates rose double digits again, yet realized rate growth came in at just 7.3 percent, down from 9 percent this time last year. A little of that gap is discounting. Most of it is inventory: work that’s been done but not billed, or billed but not paid. Inventories grew 17.7 percent across the Am Law 200 — faster than revenue itself — and grew fastest at the very top, up 19 percent for the Am Law 50. The collection cycle, the number of days it takes to actually get paid, slowed by 8.5 days. Clients, Wells Fargo notes, are eyeballing their invoices harder and cutting the checks slower.
None of which should surprise anyone who read the Q1 report. Back in April, the same collection cycle had already slowed 6.5 days, Am Law 50 inventory was already up 19 percent, and Wells Fargo’s own consultant pinned the lag on the AI gold rush — all those data center deals and pre-IPO scrambles that hadn’t been collected on yet. Three months later, the inventory is bigger and the cash is slower. Wells Fargo credits the AI capital-spending frenzy for much of the activity, and that part is real. But getting the deal done still isn’t the same as getting paid for it.
Earlier: Biglaw Discovers That Charging $2,000/Hour Is Easier Than Actually Collecting It
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Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Bluesky @Kathryn1
