2026 Citi Hildebrandt Client Advisory

Looking ahead to 2026, there are many opportunities for law firms. We expect to see a rebound in broad M&A, together with continued strength in the practice areas that drove growth in 2025.

In 2026, firms tell us that they plan to broaden their practice mix, no doubt in response to a slow transactional market. As a result, we can expect to see continued growth through lateral acquisition. Firms will also look to do more with existing clients. And, while Gen AI presents many challenges, it will also present digital transformation opportunities.

Among several key law firm trends observed, operational efficiency will be a top priority among law firm practices. This will involve reengineering the delivery of legal services and business operations through greater use of technology and using data analytics to capture market share.

Firms will also place top priority on shortening the collection cycle, having seen the cycle lengthen by 1.2% last year, reversing the shortening we saw in 2024. In response, we expect to see further growth in dedicated billing and collections teams empowered to deal directly with the client; increased emphasis on “first-time billing accuracy” to ensure that electronic bills comply with each client’s unique billing guidelines; and increased billing frequency to smooth out the lumpiness of collections throughout the year.

Overall, we are optimistic about 2026 and expect the most profitable firms to continue to pursue a strong growth mindset, capturing a greater share of market. More broadly, we expect to see market consolidation as rising cost pressures will require scale to absorb them.

We are confident that the law firm industry will continue to demonstrate how resilient and adaptable it is.