Law Firm Benchmarking 2026
Understand the gap. Unlock the growth.
Against a backdrop of continued economic uncertainty, the legal sector has once again demonstrated its resilience.
The 2026 survey paints the picture of a legal sector that continues to perform strongly despite an uncertain economic environment. Revenue growth remained robust across both city and regional firms, with many respondents reporting results ahead of budget. Encouragingly, half of all firms exceeded their original financial expectations for the year, underlining the resilience and adaptability that continues to characterise the profession.
However, the findings also suggest that attention is increasingly shifting away from revenue growth and towards profitability, cash generation and operational efficiency. Whilst firms continue to grow, rising people costs remain the most significant pressure on margins, and more than half of firms identified profitability improvement as a key strategic priority. Notably, 88% of firms are considering pay rises of no more than 5%, highlighting the balancing act firms face between rewarding talent and protecting partner returns.
The sector also continues to evolve. Investment in AI remains high, with firms increasingly moving from discussion to implementation, whilst confidence in compliance frameworks appears strong, with 90% of firms believing their AML framework would withstand enhanced regulatory scrutiny. Interestingly, despite the continued attention surrounding private equity investment in the legal sector, many firms report that its impact on their own business remains limited. Taken together, the results suggest a profession that remains confident and ambitious but increasingly focused on execution, efficiency and long-term sustainability.
Ben Carter
Partner, Professional Practices and Private Clients
Growth remains strong across the sector, but the focus is increasingly shifting from revenue generation to profitability and cash conversion. The firms that succeed over the next few years are likely to be those that can translate growth into sustainable partner returns.
Nicky Owen
Partner, Head of Professional Practices
For years the assumption has been that city firms set the pace for the rest of the market. This year's results tell a more nuanced story. Regional firms delivered comparable growth, improved lock-up and continue to demonstrate that strong financial performance is not confined to the largest firms.
Nigel Bostock
Partner, Corporate Audit
The sector continues to demonstrate real resilience, but the findings also underline that growth alone is not enough. The firms best placed for the future will be those that convert revenue into sustainable profit and cash, invest thoughtfully in their people and technology, and retain a clear focus on governance, trust and long-term value. AI, changing ownership models and rising client expectations will reshape the profession, but strong leadership and disciplined execution will remain the foundations of success.
Crowe UK’s Law Firm Benchmarking Survey is based on information and data submitted between June 2026 and September 2026 by participating law firms with financial years ending in late 2025 and early 2026. The survey includes financial-related data along with key risks and opportunities facing UK law firms – read more here.
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Be part of our 2027 survey
Once we receive your form, we will be in touch in 2027 with further information on taking part in our next survey.
| Firms who participate will receive a bespoke report, which analyses their financial results against others who have participated. You will receive insight into what other firms are focusing on and we will also provide further detail and commentary on your firm's performance. Our bespoke reports feature scatterplots and can be used as a catalyst for strategic discussions. All data is anonymised. |
View our previous Law Firm Benchmarking surveys
2025
Analysis shows strong city firm profit growth, regional pressure, improved lock-up and rising focus on cyber, AI and ESG.
2024
Facing tighter profit pools despite rising fees, with cost pressures, lock-up, sustainability and cybersecurity high on the agenda.
2023
Growth slowed as rising people costs squeezed profits, while sustainability, cyber security and EDI remain key priorities.
2022
Strong post-pandemic law firm growth, with revenues up 12%, led by regional firms despite wider economic uncertainty.
2021
Law firms showed resilience in 2021, with revenues up 5.9% despite disruption, but regional firms faced growing pressure.
2020
Steady growth entering the pandemic masked a mixed picture, with City firms investing in people while regional firms reduced their overall headcount.
2019
How UK law firms responded to COVID-19, with City firms showed resilience, and 50% of regional firms reduced their overall headcount.
2018
City and regional law firms facing slower growth, revenue pressures and future challenges around Brexit, AI and recruitment, while 70% of firms increased their headcount.