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Davis Polk & Wardwell

davispolk.com ↗

Elite 177-year-old NY law firm advising top IPOs, M&A, and finance deals globally.

Hard to displace
Assessed 23 July 2026 · Evidence as of 23 July 2026
Strong structural protection; the business model survives ai pressure.
On the recordSince 23 July 2026 · Checkable from April 2027 · Every call on the record Checkpoint: April 2027 Am Law 100 cycle publishes FY2026 revenue and partner comp data
The call

Revenue, headcount, and top deal roles are all climbing while AI reshapes associate work rather than the firm's core advisory business.

Davis Polk is a top-tier law firm that handles massive deals like IPOs and corporate restructurings for Fortune 500 companies and celebrities. It is hard to replace because clients trust its name, lawyers must be licensed by the state to do legal work, and the firm has deep relationships with regulators and other decision-makers that took decades to build. But legal AI tools like Harvey and Westlaw AI are getting better at the grunt work that junior lawyers used to do, such as reading through thousands of documents and writing summaries, which means the firm may need fewer junior lawyers over time, making it harder for them to earn promotion to partner even if the firm stays profitable.

Why
01
AI pressure: Harvey, Lexis+ AI, Westlaw AI, Bloomberg Law AI Assistant. AI tools now handle first-pass document review and due diligence, cutting into billable associate work, not partner judgment. Could AI do the core job? Unlikely.
02
Bigger players: None apparent. No large company or platform is positioned to replace elite deal counsel or bar-licensed advisory work. Could a giant copy it? No, they are blocked.
03
What protects it. Bar licensure, regulatory relationships, and client trust on billion dollar deals that AI cannot sign or stand behind.
What would change this call
April 2027 Am Law 100 shows FY2026 revenue growth rate versus FY2025's 26%. Would show whether Davis Polk's growth pace is holding or slowing versus peers.
Wave of partner departures to Kirkland, Latham, or Paul Weiss after the January 2025 pay shift. Would show whether the hybrid comp structure is causing internal defections.
Outcome of SpaceX's roughly $2 trillion IPO and Purdue Pharma bankruptcy fee approvals. Would show whether marquee mandates are converting into completed, fee-generating work.
Key numbers
  • FY2025 revenue $3.2B, up 26% (2026-04-15)
  • Profits per partner $9.8M, ranked 3rd nationally (2026-04-15)
  • New York office passed 1,000 attorneys (2026-01-20)
Named risks
  • AI erosion of associate-layer document review and research work could compress the 6.5:1 attorney-to-partner leverage pyramid. Severity: medium
  • Shift from lockstep to performance-based pay (Jan 2025) may accelerate lateral partner departures to rivals like Kirkland or Paul Weiss. Severity: medium
  • Political/reputational fallout from Trump administration executive orders targeting Big Law firms, even though Davis Polk was not directly targeted. Severity: low
  • SpaceX's ~$2 trillion IPO could be delayed or fail, denting Davis Polk's capital-markets league-table visibility. Severity: low
  • New Los Angeles office and Supreme Court practice are unproven and could fail to retain lateral talent or generate expected deal flow. Severity: medium
Rivals, as read in July 2026
RivalDirectionEvidence
Kirkland & Ellislosing toKirkland hit $10.556B revenue FY2025 (+19.93%), first firm ever over $10B, vs Davis Polk's $3.2B
Latham & Watkinslosing toLatham topped 2025 global M&A league tables with $786.7B in deals, reported 2026-01-02
Paul, Weissgaining onDavis Polk poached Paul Weiss's litigation co-chair Kannon Shanmugam, April 2026
Skaddengaining onDavis Polk hired Skadden's L.A. office head Jason Russell for new 2026 Los Angeles office
Wachtell Liptonlosing toWachtell led national PEP at $12.15M FY2025 vs Davis Polk's $9.8M, per 2026 Am Law 100
Proskauer Roselosing toDavis Polk Latin America restructuring counsel departed for Proskauer Rose, May 2026
Questions people ask
Is Davis Polk & Wardwell profitable and growing in 2025-2026?
Yes. Davis Polk's FY2025 revenue hit roughly $3.2 billion, up 26% year over year, the highest growth rate among major firms that year, with profits per equity partner rising 25.6% to $9.8 million, ranking 3rd nationally, per the 2026 Am Law 100 published April 15, 2026.
Could AI replace lawyers at Davis Polk & Wardwell?
AI targets document review, due diligence, and first-pass research, associate-layer work, but not partner-level judgment. A 2025 Stanford RegLab study found legal AI tools hallucinate on 17-33% of queries, reinforcing why licensure and liability-bearing judgment still require human attorneys at firms like Davis Polk.
Who is Davis Polk & Wardwell's biggest competitor?
By sheer revenue, Kirkland & Ellis is the largest rival, the first law firm to top $10 billion in revenue, hitting $10.556 billion in FY2025 (+19.93%) with profits per equity partner near $11.12 million, versus Davis Polk's $9.8 million, per the April 2026 Am Law 100.
Who owns Davis Polk & Wardwell?
Davis Polk is a private limited liability partnership owned and controlled by its roughly 182 to 199 equity partners; it is an all-equity structure with no non-equity partner tier and has no external investors, funding rounds, or public shareholders, as of 2026.
What major deals is Davis Polk working on in 2026?
Davis Polk is serving as underwriters' counsel on SpaceX's targeted roughly $2 trillion IPO (reported May 21, 2026) and advised underwriters on Cerebras Systems' $6.4 billion IPO, while remaining lead bankruptcy counsel to Purdue Pharma with over $246 million in approved legal fees as of March 2025.
Has Davis Polk lost partners to rival firms recently?
There has been lateral churn in both directions: a Latin America restructuring counsel left for Proskauer Rose around May 2026, while Davis Polk itself poached Paul Weiss's litigation co-chair Kannon Shanmugam and Masha Hansford in April 2026 to launch its first Supreme Court and appellate practice.
Timeline
  • 2026-04-23Launched first Supreme Court/appellate practice, poaching Paul Weiss litigation co-chair Kannon Shanmugam
  • 2026-04-152026 Am Law 100 reports FY2025 revenue ~$3.2B (+26%), PEP $9.8M (+25.6%), 3rd nationally
  • 2026-04-14Announced new Los Angeles office with Skadden partner Jason Russell joining
  • 2026-01-20New York office reported to have crossed 1,000 attorneys, +11% YoY
  • 2026-01-02Latham & Watkins reported topping 2025 global M&A league tables ahead of Kirkland and Wachtell
  • 2025-06-05SpaceX and Davis Polk roles disclosed in targeted ~$2 trillion IPO reported by Bloomberg Law (2026-05-21)
  • 2025-04-152025 Am Law 100 reports FY2024 revenue $2.54B (+25%), PEP $7.8M, ranked 4th nationally
  • 2025-03Associates circulated open letter urging firm leadership to oppose Trump executive orders against Big Law
  • 2025-01Chair Neil Barr announced shift from pure lockstep to hybrid, performance-based partner compensation
Revision history
23 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
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