Am Law 100 PEP, Billing Rate Data Reveal Law Firm Profit, Collection Gaps
The 2026 Am Law 100 report ranks U.S. law firms on profit per equity partner and billing collection rates.
Why it matters: General counsel, CFOs, and practice leaders can benchmark against top revenue and collection performers as client budgets tighten. Tracking metrics—like profit per equity partner (PEP)—clarifies which firms best translate premium billing rates into actual partner profit and sustained growth.
- Kirkland & Ellis reported $10.56B revenue for 2025—a 20% jump—while PEP reached $11.1M.
- Wachtell, Lipton, Rosen & Katz topped 2026’s Am Law 100 with $12.15M PEP, up 34.5%.
- Partner billing rates at the top 50 U.S. firms climbed 16% year-over-year to new highs for 2025.
- Only 35% of GCs plan to increase outside legal spend in 2026, per recent market survey.
The 2026 Am Law 100 report reveals wide disparities in profit per equity partner (PEP)—a core BigLaw metric—as well as how efficiently firms convert billable hours into collections.
- Kirkland & Ellis led all firms with $10.56 billion in 2025 revenue, up 20%, and reached $11.1 million PEP.
- Wachtell, Lipton, Rosen & Katz posted a market-leading $12.15 million PEP—rising 34.5% amid sustained demand.
Despite these gains, the pressure is mounting. The average partner billing rate at the 50 largest firms spiked 16% in 2025, with reported rates exceeding $3,400 per hour. At firms like Susman Godfrey, select partners now bill up to $4,000 an hour, with higher rates for expert consulting work.
Recent market surveys suggest just 35% of general counsel expect to increase their law department spend this year. By contrast, 22% plan cuts, signaling increased scrutiny on bills—and future collections risk.
Owen Burman, senior consultant at Wells Fargo’s Legal Specialty Group, summarized the landscape at year-end 2025: "It came out to be a very good year for the industry." But, as Mintz CFO Marina Raykin noted, "Attorneys are advancing to partnership without the commercial acumen or operational discipline required to effectively drive profitability."
- According to Am Law, the nation’s largest firms—those with more than 750 lawyers—now capture nearly half (49.3%) of a $67 billion U.S. legal market, intensifying the race for profitable, timely collections.
By the numbers:
- $10.56B — Kirkland & Ellis 2025 revenue, up 20% year-over-year
- $12.15M — Wachtell's 2026 profit per equity partner (PEP), up 34.5%
- 16% — Average increase in BigLaw partner billing rates in 2025
Yes, but: Even with high billing rates, a growing number of law departments plan to reduce spend, increasing collection risk.
What's next: Law firm leaders expect continued rate pressure and increased client scrutiny on bills through 2026.