"Revenues are up 13.1 percent, a byproduct of jacking up billing rates up a staggering 11.4 percent. Demand also creeped up 4.5 percent as corporate America found itself in need of more legal advice."
"Inventories grew rapidly for the Am Law 200, but the growth was not uniform, with inventory growing much faster for the Am Law 50 (up 19%) than for the other tiers."
"The inventory collection cycle slowed by 6.5 days, with nearly all the slowdown occurring at the top of the market, marking a change from last year when inventories grew in line with collections."
"There's a lot of work that hasn't been collected on yet, as the industry propping up the whole economy is just a bundle of IOUs passed back and forth."
Wells Fargo's Q1 2026 survey reveals a 13.1% increase in revenues, driven by an 11.4% rise in billing rates. Demand for legal services grew by 4.5%. However, corporate America is increasingly reluctant to pay its bills, leading to a slowdown in the inventory collection cycle by 6.5 days. The Am Law 50 saw a 19% increase in inventory, outpacing the growth of revenue. This trend reflects a shift in payment behavior, possibly influenced by the business practices of high-profile figures.
Read at Above the Law
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