The financial performance of major U.S. law firms soared in the first half of 2024, with the nation’s highest-grossing firms outpacing other segments of the legal market. According to a report from Wells Fargo’s Legal Specialty Group, revenue across large U.S. law firms surged by an average of 11.4% compared to the same period last year. This remarkable growth is attributed to increased billing rates and rising demand for legal services.
The report, which surveyed over 130 firms including 66 of the top 100 highest-grossing U.S. firms, revealed that the top 50 firms saw the most significant gains, with a 13.8% revenue increase in the first half of 2024. The firms ranked in the second 50 recorded a 7% increase, while the next 100 firms experienced 8.8% growth.
This performance marks the strongest first half for U.S. law firms since 2021, buoyed by a resurgence in capital markets, mergers and acquisitions (M&A), and continued growth in areas such as litigation, restructuring, antitrust, and investment management. The demand for legal services rose by 3.1%, with a 10% standard rate increase for the top 50 firms, compared to 7% for other segments.
Additional findings from the survey indicated a 1.5% productivity increase, 12.8% growth in inventory, and 7% growth in expenses across the surveyed firms. These results align with other recent industry reports, such as data from Citigroup’s Global Wealth at Work Law Firm Group, which also reported a strong financial performance for the first half of the year.
Legal industry analysts are optimistic about the remainder of 2024, with positive sentiment echoing across client meetings and continued confidence in the market’s upward trajectory.
