BigLaw Profits Soar as Firms Tighten Equity Partnership Doors

BigLaw firms report rising profits alongside selective equity partner promotions.

Major U.S. law firms closed 2025 with record financial performance but evolving partnership trends. Kirkland & Ellis made history by surpassing $10.5 billion in annual revenue, a jump of nearly 20% from 2024, as reported by The National Law Review. Meanwhile, Wachtell, Lipton, Rosen & Katz became the first Am Law 100 firm to exceed $12 million in profits per equity partner (PEP), a milestone underlining profitability in elite BigLaw.

However, back-office data reveals tightening promotion pipelines. The Am Law 200's equity partner headcount contracted by 0.5% during the first nine months of 2025, even as non-equity partner positions expanded by 6%, according to Mayer Brown's industry analysis. This reflects strategic selectivity among firms balancing partner compensation with sustaining growth.

Other firms also report double-digit revenue and profit jumps. Proskauer Rose's 2025 revenue rose 13.8% to $1.58 billion with PEP over $5 million, while Crowell & Moring's PEP surged 37% to $1.68 million on 19% revenue growth (~$743.9 million), outlined by LegalTech Digest. Latham & Watkins and Jenner & Block reported average PEP of $8.65 million and $3.35 million, respectively, alongside solid revenue gains.

Firm structures indicate a move away from traditional single-tier partnerships. Only ten firms in the Am Law 100 maintain a single class of partners, as noted by Above the Law. Multi-tier partnerships are increasingly common, allowing firms to balance exclusivity in equity promotion against expanding non-equity leadership roles.

The partner hiring boom in early 2026 shows continued lateral movement, with 979 partner lateral moves—the highest in six years— and overall lateral attorney additions rising 5.5%, per Macrae New York. Tad Gruman of Macrae notes firms are creatively vetting candidates, indicating selective expansion efforts.

Jenner & Block’s co-managing partners emphasize their firm’s reinvestment strategy and reputation as a talent magnet, underscoring how selective equity policies align with long-term growth. "We know where our strengths are, and we reinvest and double down in those strengths," says Randy Mehrberg.

Yes, but: While equity ranks shrink slightly, growing non-equity partner numbers indicate firms still expanding leadership layers without diluting profits among equity partners.

What's next: Watch for further shifts in partnership structures and promotion rates as firms balance profitability with talent retention throughout 2026.