Wells Fargo data: Am Law 200 rate growth runs at 11.4% with only 1–2% realization drag

Wells Fargo Legal Specialty Group data for Q1 2026 shows an average 11.4% billing rate increase among Am Law 200 firms, with realization declining only 1–2 percentage points. The economic implication is that rate increases are generating net revenue gains even accounting for modest realization erosion — a firm that raises rates 11.4% and loses 2 points of realization still adds substantial revenue. The risk is that inventory and collection cycles continue to lengthen: 2025 full-year data showed unbilled work rising 15.9% and collection cycles slowing by 3.5 days.

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