Covington & Burling
DC and Brussels law firm doing regulatory, policy, and government affairs work for tech and life-sciences clients.
On the record
Checkpoint: FY2026 Am Law revenue and profit-per-partner report, plus outcome of the federal contract and clearance review
The call
Covington's revenue and partner profit both grew sharply through the period AI was supposed to hurt legal work, with the open questions sitting in junior staffing economics and the unresolved federal contract review.
Covington & Burling is a major law firm that helps tech companies, life sciences businesses, and governments with complex legal and policy work, especially in Washington DC and Europe. It is hard to replace because clients trust these lawyers with confidential advice, and the firm has decades of relationships with government officials and agencies that took years to build. But the firm faces two real threats: AI-powered legal tools like Harvey and Amazon's legal service are starting to do routine work that junior lawyers used to do, which cuts into profits, and rival firms like Kirkland & Ellis are investing huge amounts of money in AI to stay ahead. The biggest wildcard is whether the Trump administration's review of Covington's federal contracts will damage the firm's reputation and client relationships, since that DC government work is what makes Covington special in the first place.
Why
01
AI pressure: Harvey, Legora, Norm Law, Amazon Quick for Legal. AI drafting and research tools speed up junior associate work, pressuring the fee pyramid that funds partner pay even as top-end regulatory demand grows. Could AI do the core job? Unlikely.
02
Bigger players: Kirkland & Ellis, Latham & Watkins, Paul Weiss. Rivals are spending heavily on AI tools and lateral hiring, raising the cost of keeping associates and partners without yet pulling named Covington clients. Could a giant copy it? No, they are blocked.
03
What protects it. Decades-deep DC and Brussels government relationships, alumni in agencies and the White House, and privileged trusted-counsel status on matters clients cannot risk to software or newcomers.
What would change this call
Outcome of Trump administration's federal contract review of Covington, unresolved since Feb 2025. Would show whether political targeting is actually costing Covington government-linked work.
FY2026 Am Law report (expected Q1 2027) shows PEP or revenue growth slowing versus FY2025's 18%/22%. Would indicate AI or competitive pressure catching up to its associate-pyramid economics.
Covington announces a large-scale operational AI investment comparable to Kirkland & Ellis's $500M deal. Would show Covington responding to AI-native and Big Tech legal tool competition.
FY2026 Am Law report (expected Q1 2027) shows PEP or revenue growth slowing versus FY2025's 18%/22%. Would indicate AI or competitive pressure catching up to its associate-pyramid economics.
Covington announces a large-scale operational AI investment comparable to Kirkland & Ellis's $500M deal. Would show Covington responding to AI-native and Big Tech legal tool competition.
Key numbers
- FY2025 revenue rose ~18% to surpass $2 billion
- Profit per equity partner up 22% to $3.2 million
- Attorney headcount rose 4% to about 1,311
Named risks
- Trump administration contract review and clearance suspension unresolved since Feb 2025.
- AI-native and PE-backed firms (Norm Law, Eudia) targeting BigLaw associate-level work.
- Lateral partner attrition to rivals like Morgan Lewis amid Big Law hiring arms race.
- No disclosed internal operational AI investment compared to Kirkland's $500M commitment.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Morgan Lewis | losing to | Poached London partner Philip Cheveley to lead Europe M&A, 2026-05-12 |
| Freshfields | gaining on | Covington hired two Freshfields M&A partners Feb 2026 |
| Cooley | gaining on | Covington hired Mark Simpson from Cooley for UK competition, Jun 2026 |
| Kirkland & Ellis | contesting | Kirkland committed $500M to AI/Palantir vs no disclosed comparable Covington spend, Jul 2026 |
| Norm Law | contesting | PE-backed AI-native firm (~$50M) targeting BigLaw clients as of Jun 2026, no confirmed Covington client loss |
| Amazon Quick for Legal | contesting | Big Tech agentic legal AI tool launched Jul 2026, targets contract/compliance work |
Questions people ask
- Is Covington & Burling profitable?
- Yes. Average profit per equity partner rose about 22% to $3.2 million in FY2025, while gross revenue surged roughly 18% to surpass $2 billion, per Am Law reporting dated 2026-03-12.
- Could AI replace Covington & Burling's lawyers?
- Unlikely at the top. Its DC/Brussels regulatory relationships, alumni network, and privileged trusted-counsel role are hard for AI to replicate, though junior-associate document review and contract work face exposure from tools like Harvey and Legora as of mid-2026.
- Is Covington & Burling losing clients to AI-native law firms?
- No confirmed client losses have been reported as of July 2026. AI-native rivals like Norm Law (~$50M, Bain/Blackstone backed) and Eudia ($105M+ raised) are targeting BigLaw work, but Covington has no documented client or revenue loss to them yet.
- Is Covington & Burling being targeted by the Trump administration?
- Yes. On 2025-02-25 the Trump administration suspended security clearances of Covington attorneys who represented Jack Smith pro bono and directed federal agencies to review or terminate the firm's contracts; the outcome remained unresolved as of July 2026.
- Who is Covington & Burling's biggest competitor?
- Kirkland & Ellis leads on scale and AI investment, having committed $500 million including a Palantir partnership (reported 2026-07-14), while WilmerHale, Skadden, and Latham & Watkins compete directly on regulatory and white-collar work.
- What is Covington & Burling's annual revenue?
- FY2025 gross revenue surged nearly 18% to surpass $2 billion, up from $1.747 billion in FY2024 when it ranked #31 on the Am Law 100, according to Am Law data from 2026-03-12.
Timeline
- 2026-06-09Hired Mark Simpson from Cooley for UK competition litigation
- 2026-05-12London partner Philip Cheveley departed to Morgan Lewis
- 2026-03-12FY2025 revenue reported up ~18% to over $2 billion, PEP $3.2M
- 2026-02-24Hired John Fisher and Tomas Rua from Freshfields for tech M&A
- 2025-08-17Named to The American Lawyer's 2025 A-List top 10
- 2025-07-09Mandated four-day in-office attendance firm-wide
- 2025-02-25Trump administration suspended clearances, ordered contract review
- 2025-01Absorbed 54-lawyer Paris team from Kramer Levin
Revision history
23 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Covington's Revenue Surges Nearly 18% to Surpass $2B Mark (2026-03-12)
- Top Biglaw Firm Increases Office Attendance Demands For Attorneys (2025-07-09)
- Covington Named to The American Lawyer's A-List (2025-08-17)
- Covington & Burling -> History
- Covington & Burling, Law Firm Profile
- Covington & Burling Number of Employees 2026 (2026-06-29)
- Covington & Burling LLP, Latin America 2026
- Covington & Burling
- Morgan Lewis Hires Covington Partner To Lead Europe M&A, Law 360 (2026-05-12)
- Covington adds tech M&A duo from Freshfields (2026-02-24)
- Covington Boosts UK Competition Litigation Practice With Cooley Hire (2026-06-09)
- White House suspending active security clearances of Covington & Burling lawyers (2025-02-25)