Citi: H1 Revenue Up 11.7%, Demand Growth at Multi-Decade High

Citi's Law Firm Group reported H1 2026 revenue growth of 11.7% across its survey cohort, with demand growth of 4.2% — well above the historical average of 1.5–2% and a sign that the market is absorbing rate increases without significant volume loss. Top-50 firms outperformed at 13.1% revenue growth, but also bore the steepest cost burden: overhead rose 12.6% and total expenses increased 10.7%, driven by AI investment, associate compensation, and infrastructure. A notable structural signal: despite AI adoption, billable demand is not contracting — AI appears to be enabling more work rather than reducing the volume of chargeable hours. Q3 early indications from Citi suggest the demand environment remains strong heading into the second half.