2026年律师事务所调查提高增长标准

LawFirmSurvey2026

Raisingthebarforgrowth

October2026

Foreword

MarkAnderson

UKandGlobalLegalandProfessional

ServicesLeader

Wearedelightedtopresentour35thAnnualLawFirm

Survey.Overthepastthreeandahalfdecades,oursurveyhastoldthestoryofasectorthathasadapted,evolved,

andthrivedthroughgenerationsofchangeanddisruption.

ResilienceremainsoneoftheUKlegalmarket’sdefiningstrengths.Butresiliencealonewillnotbeenoughfor

whatcomesnext.

Foryears,mostfirmshavegrownthroughincrementalimprovement,thegradualevolvingofoperatingmodelsandcontinuedpricingpower.Artificialintelligence(AI),changingclientexpectations,evolvingglobaldynamics,andnewmarketmodelsarenowchallengingthe

assumptionsonwhichthelegalsectorhasbeenbuilt.

Itisunlikelythatthenextphaseoflawfirmgrowthwillbeachievedinthesameway.

Indeed,weareseeingcleardivergentperformancepathsindifferentcohortsofsurveyrespondents,withthelargerandsmallerfirmsinvestinganddifferentiatingtopullawayfromthe“squeezedmiddle”.Firmswillneedtoadapt

morequicklyanddisruptthemselvesbeforeothersdoitforthem.

Pleasedogetintouchtodiscussanyofthefindingsinthissurvey.

LucyRobson

SurveyLead,

LegalandProfessionalServicesTaxLeader

OurmorerecentLawFirmSurveyshaveissuedaclear

challenge:thatstandingstillisnolongeranoption,andthatonlythosewillingtoactwithconvictionwouldthrive.

Thepaceofchangeinthelegalsectorcontinuesto

accelerate.Wearenowinanewwaveoftransformationandwhilemanyfirmsseizedthemomentumearly,othershavebeenslowertorespond,whetherbychoiceorby

circumstance.Theevidenceisstark:awideninggapinperformancebetweenthosewhomoveddecisivelyandthosewhodidnot.

Thisyear’sfindingsrevealasectorthatisambitiousfor

growthyetstandingatapivotalinflectionpoint.Thefirmsthatwilldefinethenexteraarethosepreparedtomakedeliberate,oftendifficult,choices–wheretocompete,whattowalk

awayfrom,whichcapabilitiestoinvestin,andhowboldlytoreimaginetheirmodel.Scaleandheritageremainimportant,butneitheralonewillbeenoughtoguaranteesuccess.

Whatwillsetleadersapartisawillingnesstodothingsdifferently:distinctivepositioning,technology–enabled

delivery,thecouragetochallengelong–heldconventionsand,critically,commercialrigourandconfidenceinthevaluetheydeliver.

Themarkettodayisstrong,howeverthereinlies

thedanger.Thegreatestriskisn’tdisruptionfromoutsidethesector;it’sthequietcomplacencyofmistakingpresentperformanceforfuturereadiness.

PwC2LawFirmSurvey2026|Foreword

Contents

01Overview

-Globalfinancialperformance

02

Keythemesfor2026

-UKfinancialperformance

-Strategy,operationsandrisk

-People

-Workingcapitalandfinancing

03Conclusion

04Appendix:KeyPerformanceIndicators

LawFirmSurvey2026|Contents

PwC

3

01

Overview

LawFirmSurvey2026|01OverviewPwC5

ShareofTop100revenue(allfirmsconsolidated)

Top10

Top26–50

Top51–100

Top11–25

2026

-1%

Against2024

-2%

11%+6%

Against2024

Against2024

12%

15%

2024

17%

45%51%

26%

-3%

23%

Against2024

Our2026LawFirmSurveypaintsapictureofasectorwhichcontinuestogrow,butthedistancebetweenleadersandtherestiswidening

witheverypassingyear.Thelargestfirmscontinuetopullawayfromtherest,harnessingthecompoundingadvantagesofscale,internationalreachandoperationalleverage,

whilemid–sizefirmsconfront

mountingstructuralheadwinds.

Thefoundationsonwhichsuccesswas

traditionallybuiltareshifting,andnotallfirmsareshiftingwiththem.ThisisillustratedwhentheshareoftotalconsolidatedfeeincomeisconsideredacrosstheTop100bandings.TheTop10lawfirmshaveincreasedtheirshareoffeeincomefrom45%to51%inthelasttwoyears,whiletheTop11-25and26-50have

effectivelycontracted.

Growthremainstheoverridingstrategic

ambition.Firmsspeakwithconviction

aboutgainingmarketsharethroughsector

specialisation,distinctivecapabilities,

andtargetedexpansion.Yetaspirationand

executionarenotthesamething.Choosingtopursuemorevaluableworkisonething;

havingthedisciplinetorelinquishcomfortablerevenuestogetthereisquiteanother.

Andthearithmeticisunforgiving:noteveryfirmcantakemarketsharesimultaneously.

of10.0%,8.3%and9.9%respectively,

achievingactualgrowthof5.8%,5.8%

and8.7%.Top51–100firmsfaredbetter,

achievedfeegrowthof9.4%,aheadof

expectation(8.3%).Lookingforward,

Top10,11-25and26–50firmsareexpectingfeegrowthofc.8%–9%in2027,with51–100firmsexpressingmoreoptimismat11.2%.

Thismeansallbandingsareexpectingtooutperform2026performance.Thisfurtheremphasisesthedifficultyfacinglawfirmstoachievebudgets,alongwiththeriskoflosingclientstocompetitorbandings.

Feeincomeandnetprofitmovements(%):2026predicted,2026actualand2027predicted

Lookingat2026predictionsagainstactualssupportsthatfirms’growthaspirationsare

2026actual

2026predicted

2027predicted

fallingshort,likelyduetothecompetitioninthesector.Top10,11–25and26–50firms

Feeincome

struggledtomeet2026feegrowthtargets

Top10

Top11–25

Top26–50

Top51–100

Netprofit

10.0

5.8

9.1

8.3

5.8

8.1

9.9

8.7

8.8

8.3

9.4

11.2

0.02.04.06.08.010.012.014.0

Top10

Top11–25

Top26–50

Top51–100

12.6

14.1

10.6

8.8

5.7

7.6

8.2

6.0

8.1

7.7

11.7

9.8

0.02.04.06.08.010.012.014.0

PwC6Note:theabovegraphsexcludeoutliersasaresultofbusinesscombinationsintheyear.LawFirmSurvey2026|01Overview

Followingseverallarge–scaletransactions

in2025,appetitefortransformationalmergersiscooling.Firmsarefavouringlateralhiring

andselectiveacquisitionsoverlarger–scale

strategicbets.Thisreflectsenduringambitiontemperedbyagrowingreluctancetocommitcapitalandleadershipattentionbeyondthemostimmediatehorizon.

AIhasmovedtothecentreofthesector’s

strategicagendaandthepaceofadoptionhasbeenstriking.Firmsembracingchangeareprogressingrapidlyfromtentative

experimentationtosubstantialinvestmentintechnologyplatforms,specialisttools,anddedicatedteams,whileothersareslowertoadapt.Concerningly,deploymentcontinuestooutpacetherealisationofvalue.Many

firmsreportgainsinproductivity,quality,

andresponsiveness,butfewhavetranslatedthoseimprovementsintomeaningful

commercialreturns(only8%oftheTop

100).ThegapbetweenAI’spromiseand

itsdeliveredimpactremainsconsiderable,restrainedbyshortcomingsindata

infrastructure,training,measurement,

andoperationalintegration.Allofwhicharecompoundedbyadeeplyhumanreluctancetostepawayfromthefamiliarcomfortofthebillablehour.

Thechallengeconfrontingthesectorisnotmerelyoneoftechnologyadoption:

itisoneofbusinessmodeltransformation.

LawFirmSurvey2026|01OverviewPwC7

MostfirmshaveestablishedAIgovernance

frameworks,policies,andcontrols—thevisiblearchitectureofchange.

Lessattentionisbeingpaidtothedeeper

enablers:operatingplatforms,pricing

models,incentivestructures,workforce

development,andcapitalallocation.There

isarealandgrowingriskthatfirmssimply

layernewtechnologyonoldwaysofworking,withoutfundamentallyrethinkinghowlegal

servicesaredelivered,pricedormanaged.

Thistensionisplayingoutinworkforce

dynamics.Chargeablehoursaredeclining

inmanyseniorroles.Meanwhileutilisationisstrengtheningamongcertainjunior

populations,anunsurprisingconsequenceoffirmsstrivingtoextractgreatervalue

fromtechnology,evenaspricingmodels,

recruitmentstrategies,andperformance

metricslagbehind.Strategicworkforce

planningisgainingtractionbutremains

uneven;forexample,inTop10firmsonly

14%haveappliedstrategicworkforce

planningfirm–wideand72%havedonesoinselectedareas.AsAIreshapeshowlegalworkisperformedanderodesthetraditionalrelationshipbetweentimeandvalue,firmswillneedtoconsiderhowtalent,technology,skills,organisationaldesign,andreward

structuresevolve.

PwC8LawFirmSurvey2026|01Overview

Sentimentacrossthesectorisastudyin

contradictions.Firmsexpressconfidenceintheirgrowthprospects,yetremainanxiousabout

technologicaldisruption,clientautomation,andmarginpressure.Strikingly,mostdonotsee

alternativebusinessmodelsandnon–traditionalcompetitorsasathreat,despiteevidencethattheseorganisationswillbenefitmostfrom

technologicalshifts.Thiscomplacencymayprovetobeasignificantstrategicblindspot.

Operationalresilienceisbecominginseparablefromthetransformationagenda.Growing

dependenceonAI–enabledprocesses,

cloudinfrastructureandthird–partysuppliersheightenstheneedforcybersecurity,

technologyresilienceandinvestmentcapacity.

Thesearenolongeroperationalconcerns

alone;theyarestrategicimperatives.Theabilitytodrivechange,manageriskandmaintain

continuitywillincreasinglydistinguishfirmsthatadaptfromthosethatfallbehind.

Thesectorentersthisperiodfromapositionofconsiderablestrength.Butcurrentperformancemustnotbeconfusedwithfuturereadiness.

Thefirmsmostlikelytothrivewillbethosethatcombineambitionwithdisciplined

execution:choosingwheretheycanbe

trulydistinctive,embracingtechnologyas

acatalyst,redesigningpricinganddelivery

models,andmakingbolddecisionsbefore

themarketremovestheluxuryofchoice.The

definingquestionisnolongerwhetherfirms

canadapt.Itiswhethertheycanmovewith

sufficientconvictionandspeedtoshape,ratherthanmerelysurvive,thenexteraoflaw.

LawFirmSurvey2026|01OverviewPwC9

02

Keythemes

Globalfinancialperformance

13%

Averageglobalprofit(beforefullandfixedshareequitypartnerremuneration)growthachievedbyTop10firms

10%–13%

FeeincomegrowthrecordedbyTop10firmsinWesternEurope,China(inc.HongKong)

andRestofAsia

6.5%–8.1%

FeeincomegrowthreportedinWesternEuropeandMiddleEastbyTop11–25firms

5.8pp

NetprofitmargingapbetweenTop10(41.3%)and11–25

firms(35.5%)(beforefulland

fixed-shareequityremuneration)

LawFirmSurvey2026|02KeythemesPwC11

Globalfeeand

profitgrowthanalysis

Globalfeeincomegrowthheld

upreasonablywellin2026,but

theheadlinefiguresconceala

wideninggapbetweentheTop10and11–25firms.Top10firmsgrewfeesby5.8%(broadlyinlinewiththeprioryear),whileTop11–25

firmsgrowthdeceleratedsharplyto4.0%(from6.7%in2025).

Thedivergenceisstarkerstillattheprofit

level.Top10firmsliftednetprofitby13.0%,morethandoublethepaceoffeegrowth,

whereasTop11–25firmsmanagedjust3.2%.InrespectofTop11–25firms,thismaybe

seenasreal–termcontraction.

WhatsetstheTop10apartwastheircapacitytotranslaterevenuegrowthintoprofit.

Scale,costdiscipline,favourablebusinessmixandtheabilitytospreadoperational

investmentacrossalargerrevenuebasearecompoundingintoastructuraleconomic

advantageforthelargestfirms.

ItisworthnotingthattheTop11–25averagedisguisesawidespreadofindividualfirm

results:profitgrowthrangedfromadecline

of12.8%toanincreaseof19.6%.That

dispersionsignalsfundamentallydifferentfirm–leveloutcomesandunderscoresthatmarketpositioningandexecutionqualityaredecisivewithinthisbanding.ItwouldappearthatTop10and11–25firmsthatpursueddeliberate

cost–reductionprogrammesgenerally

deliveredstrongerprofitperformance,withasignificantshareofthesavingsappearingtooriginateinUKoperations.

Costreduction,whilevaluableasashort–termreset,isnotarepeatableengineofgrowth.

Therealleadershipchallengeistoconvert

one–offsavingsintolastingproductivitygainsthroughsharpermattereconomics,simpleroperatingmodels,technology–enabled

deliveryandactivestewardshipoftheinternationalportfolio.

Top10

Top11–25

Feeincomegrowthbyinternationalregion(%)

WesternEurope

MiddleEast

10.36.5

7.8

8.1

12.0

China(inc.HongKong)

–1.0

RestofAsia

–8.3

13.3

USA

4.2

7.3

0.6

Australia

–9.6

International

marketanalysis

Regionalperformancecontinuestodivergeandthegapbetweencohortsistelling.Top10firmsrecorded

theirstrongestfeeincomegrowthinWesternEurope,ChinaandtheRestofAsia,at10.3%,12.0%and13.3%respectively.Top11–25firmsmanagedmoremodestgrowthof6.5%inWesternEurope,whilefeeincomefellby1.0%inChinaand

8.3%acrosstheRestofAsia.

–15–10–5051015

Thesedisparitiesreflectunderlying

differencesinclientmix,scale,cross–

borderreferralflowsandthecapacityto

sustaininvestmentinmarketswherelocal

competitorsoperatewithstructurallylowercostbases.Thestrategicquestionfor

leadershipteamsisthereforenotsimply

whetheranofficeisgrowing,butwhetheritisdeepeningpriorityclientrelationshipsandearninganacceptablereturnafterabsorbingthefull(andoftenhidden)costofthe

internationalplatform.

Despitepoliticalinstability,bothTop10and11–25firmsachievedfeeincomegrowth

intheMiddleEastandtheUnitedStates,underscoringtheenduringimportance

ofthesemarketstointernationalgrowthstrategies.Australiaprovedmoredifficult:

Top10firmsreportedgrowthofjust0.6%,

whileTop11–25firmssawadeclineof9.6%.

WeaknessinChina,theRestofAsiaand

AustraliadraggedontheoverallinternationalperformanceofTop11–25firms,leaving

internationalfeeincomeandprofitessentiallyflat.Setagainstthemoreresilientregional

balanceachievedbytheTop10,thishighlightsthatwhatmattersisportfolioquality,not

geographicbreadthforitsownsake.

Forinternationallyactivefirmsoutsidethe

Top10,scaleisfastbecomingadefining

strategicquestion.Leadershipteamsface

increasinglysharpchoicesaroundwhere

theycanbuildadistinctiveandprofitable

position,wherealliancesortargeted

combinationsofferamorecredibleroutetomarket,andwherecontinuedinvestment

remainsjustifiable.Whereunderperformancepersists,firmsshouldrigorouslyreassess

whethertheirlocalscale,practicemixandclientpropositionaresufficienttogenerate

acceptablereturns;particularlywhen

managementattentionandcapitalcouldberedeployedtofaster–growingmarkets.

Thischallengeisespeciallypressingas

scepticismgrowsaroundtheintangiblevaluethatfirmshavelongusedtojustifyfar–flungoffices.Firmsshoulddeterminewhether

clientsgenuinelyrequiretheirgeographic

footprint,whetherworkreferralsareflowinginbothdirections,andwhetheroverseas

officesareofasufficientcalibrethatallow

thefirmtocommandreasonablerateson

referredwork.Leadershipteamsshouldalsoconsiderwhetherfirmqualityandculturearesufficientlyalignedtomaintainconsistent

workstandardsandmanageriskeffectively,andwhetherthemanagementtimethese

officesconsumejustifiestheincrementalgainstheydeliver.

PwC12LawFirmSurvey2026|02Keythemes

LawFirmSurvey2026|02KeythemesPwC13

Globalnet

profitmargin

Withvariationsbetweenregions

andindividualfirmperformance,

theresultscanpresentacomplex

picture.Overallglobalnetprofit

marginservesasausefulbarometerofaggregateperformance.The

broaderpicturerevealsthattheprofitabilitygapbetweenthe

Top10and11–25firmswidenedfurtherin2026.Top10global

netprofitmarginroseto37.4%(from34.9%in2025),whiletheTop11–25marginheldbroadlysteadyat25.1%(25%in2025).

However,astructurallensisnecessaryto

Top102026

2025

Top11–25

2026

2025

Feeincome

100.0

100.0

100.0

100.0

Staffcosts–feeearners

26.8

28.0

27.7

28.6

Staffcosts–non–feeearners

11.9

12.1

16.2

15.4

Propertycosts

6.4

6.8

6.4

6.4

ITrevenuecosts

3.3

3.5

3.5

3.3

MarketingandBDcosts

1.1

1.0

1.6

1.5

Financefunctioncosts

0.6

0.8

0.7

0.9

Depreciation

1.6

1.8

1.6

1.7

Insurancecosts

1.2

1.3

1.3

1.5

Baddebtsanddisbursements

1.0

0.7

1.1

1.4

Foreignexchangedifferences

0.0

0.5

0.2

0.1

Allothercosts

4.8

4.6

4.2

4.6

Profitbeforefixed-shareequityremuneration

41.3

38.9

35.5

34.6

Fixed-shareequitypartners’remuneration

3.9

4.0

10.4

9.6

Netprofitmargin

37.4

34.9

25.1

25.0

Staffcostratio(allstaffcosts)

38.7

40.1

43.9

44.0

Staffcostratio(allstaffcosts,inc.FSEPcosts)

42.6

44.1

54.3

53.6

fullyappraisetheseresults,aspartnership

structureaffectsthecomparabilityof

reportednet–profitmargins.Fixed–share

equitypartnerremunerationaccountsfor

just3.9%offeeincomeamongTop10firms,comparedwith10.4%intheTop11–25

wherethisgradeisusedmore.Priortofull

andfixed–shareequitypartnerremuneration,theTop10netprofitmarginincreasedto

41.3%from38.9%,whiletheTop11–25marginedgedupto35.5%from34.6%.

Greateruseoffixed–shareequityroles

canhelpfirmsmanagefull–equitydilutionand,aswehaveseeninprevioussurveys,canbemanagedtoprotectprofitperfullequitypartner.Yetitalsoraisesbroader

questionsaroundcareerprogression,

roleclarity,incentivealignmentand

retention.Firmsshouldbedeliberate

aboutwhetherfixed–shareequityis

intendedasadestinationorapathway,andensurethatremunerationstructuresreinforcethebehavioursandleadershipcapabilitiestheirstrategydemands.

Itisclear,thelargestglobalfirmsare

beginningtopullaway–notprimarilythroughfasterfeegrowth,butthroughstrongerprofitconversion,amorematureinternational

portfolioandgreateroperatingleverage.

Global–Averagepercentageprofitandlossaccount(%)

UKfinancialperformance

41.3%

Top10netprofitmargin,

up2.8percentagepointsonprioryear(2025:38.5%)

95%

OfTop100lawfirmsachievedUKfeeincomegrowthin2026(2025:95%)

1.4pp

GapbetweennetprofitmarginsofTop51-100firms(25.4%)

andTop26-50firms(24.0%)

5%–6%

IncreaseinPEPacross

Top11–25and26–50firms

PwC14LawFirmSurvey2026|02Keythemes

UKfee

andprofitgrowth

UKfeeincomegrowthproved

resilientacrossthesector,witheveryTop100bandingrecordingaveragegrowthofbetween5.7%and9.4%.

Thisisareassuringoutcomeagainstachallengingmarketbackdrop,

thoughthepaceofgrowthhasmoderatedyearonyearineverysegmentexcepttheTop26–50.

Thesector’sabilitytoconvertthatfee

incomegrowthintoprofitisuneven.Top10and51–100firmssawprofitgrowth,whichwasreasonablystrongandaheadoffee

incomegrowth(5.6and3.1percentage

pointsrespectively).Incontrast,increasesinprofitamongTop11–25and26–50

firmslaggedfeeincomegrowth(by0.3and3.2percentagepoints).FortheTop26–50bandinginparticular,thismarksadisappointingtrendcontinuingoverfourconsecutiveyears.ThisequatedtoafallinnetprofitmarginforTop26–50firmsof0.3percentagepointsto24.0%.

UKfeeincomeandprofitgrowth:2026and2025

LawFirmSurvey2026|02KeythemesPwC15

2026growth

2025growth

Feeincomegrowth(%)

Top10

7.7

8.1

5.7

Top11–25

7.1

8.7

Top26–50

7.2

9.4

Top51–100

11.0

0246810121416

Netprofitgrowth(%)

13.3

Top10

10.3

5.4

Top11–25

10.3

5.5

Top26–50

4.6

Top51–100

12.5

14.2

0246810121416

UKaveragerateperhour

Top10

£509

+2.6%

Top11–25

£381

+5.5%

Onalike-for-likebasis

Top26–50

£308

+6.6%

Top51–100

£264

+0.8%

PwC16LawFirmSurvey2026|02Keythemes

UKrateper

chargeablehour

Averagefeesperchargeable

hourroseacrosseverysegment,increasingby2.6%to6.6%onalike–for–likebasis.

Perhapssurprisingly,giventheirsuboptimalperformanceonconversiontoprofit,

Top11–25and26–50firmsrecorded

thestrongestrateincreases(5.5%and

6.6%respectively).Bycontrast,Top10

and51–100firmsdeliveredstrongprofit

growth,asreferredtoabove,despitemoremodestrateperhourgains.Theimplicationisstriking:operatingefficiencyandcost

disciplinehasemergedasadecisiveleverofprofitgrowthinthecurrentyear.

Theprofitabilitygainsachievedby

Top10firms(andtoalesserextent

Top51–100firms)setaclearbenchmark

forthewidersector.Asthemarket

shifts,propelledbyadvancesinAIandevolvingclientexpectations,theerainwhichrateincreasesaloneunderpin

profitgrowthisstartingtoplateau.

Leadershipteamsshouldensuretheyare

prioritisingvalue–basedpricing,utilisation

andproductivity,servicemix,operational

efficiencyandcostdiscipline.Thesearelikelytobetheprincipalenginesofprofitgrowth

overtheshorttomediumterm.Alaser

focusoncommercialexcellencewillalsoberequiredtoenablefirmstorealisetheireffortstorewardandretaintheirstrongestpartners.

UK–Averagepercentageprofitandlossaccount(%)

LawFirmSurvey2026|02KeythemesPwC17

Top102026

2025

Top11–25

2026

2025

Top26–502026

2025

Top51–1002026

2025

Feeincome

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Staffcosts–feeearners

26.9

27.7

28.5

29.3

30.8

30.6

31.0

32.1

Staffcosts–non–feeearners

10.0

9.8

15.9

15.7

16.2

15.7

15.5

14.6

Propertycosts

6.0

6.4

5.6

5.9

5.6

5.6

5.3

5.6

ITrevenuecosts

3.4

3.3

3.9

3.7

3.9

4.0

4.4

4.5

MarketingandBDcosts

1.1

1.1

1.4

1.3

1.9

1.8

1.9

1.9

Financefunctioncosts

0.7

0.9

0.6

0.5

0.1

0.1

0.3

–0.4

Depreciation

1.4

1.8

1.8

1.5

1.8

1.8

1.5

1.7

Insurancecosts

1.2

1.4

1.3

1.6

1.7

1.9

2.3

2.6

Baddebtsanddisbursements

0.9

0.4

0.8

0.8

1.1

1.0

0.8

1.0

Foreignexchangedifferences

–0.2

0.6

–0.1

0.1

0.0

0.1

0.0

0.0

Allothercosts

4.2

4.7

5.0

4.4

4.0

4.1

3.3

3.8

Profitbeforefixed-shareequityremuneration

44.4

41.9

35.3

35.2

32.9

33.3

33.7

32.6

Fixed-shareequitypartners’remuneration

3.1

3.4

6.1

7.4

8.9

9.0

8.3

8.0

Netprofitmargin

41.3

38.5

29.2

27.8

24.0

24.3

25.4

24.6