Thomson Reuters LFFI Q2: Sharpest Single-Quarter Gain of the Year

The Thomson Reuters Law Firm Financial Index posted its sharpest single-quarter gain in Q2 2026, with demand up 3% year-over-year and billing rates rising 7.1%. Practice-area demand was broadly distributed: real estate up 3.6%, corporate up 3.5%, and labor and employment up 3.4%. Associate demand grew 4.3% and non-equity partner demand surged 6%, while equity partner demand slipped 1.2% — a leverage signal consistent with firms expanding productivity through salaried timekeeper ranks rather than adding equity headcount. Technology spending was the single fastest-growing overhead category at +11.6% year-over-year, reinforcing that AI investment is now a structural expense rather than a discretionary line item. Am Law 100 revenue and profit per FTE are growing, indicating operational leverage is beginning to show up in the earnings data.