Latham & Watkins
Elite global corporate law firm, ranked #2 worldwide by revenue.
On the record
Checkpoint: FY2026 Am Law 100 revenue and profit-per-partner rankings released
The call
Record revenue and partner profits arrived the same year AI tools went firmwide, with licensure rules keeping both AI and rivals from taking the work itself.
Latham & Watkins is a major international law firm that handles complex legal work for big companies. It is hard to replace because only licensed lawyers can practice law and take responsibility for mistakes, which keeps out pure AI competitors like Harvey and Legora, though those tools help lawyers work faster. The main risk is client defections over a Trump-related pro-bono case and the possibility that AI will eventually let companies demand lower prices as they need fewer junior lawyers to do the work.
Why
01
AI pressure: Harvey and Legora legal AI platforms. Firm deployed Harvey firmwide in Aug 2025; AI drafts and researches but bar rules bar it from practicing law or bearing liability. Could AI do the core job? Unlikely.
02
Bigger players: Kirkland & Ellis. Kirkland leads global revenue at $10.556B vs Latham's $8.3B, but Latham grew faster (18.6% vs Kirkland's pace) in FY2025. Could a giant copy it? No, they are blocked.
03
What protects it. Bar admission and malpractice liability rules mean only licensed lawyers can practice corporate law, blocking AI-native or non-lawyer entrants.
What would change this call
FY2026 revenue figures released around April 2027 show growth rate versus FY2025's 18.6%. Indicates whether AI adoption is compressing billable hours enough to slow revenue growth.
Outcome of Skadden shareholder litigation testing Antideficiency Act theory tied to Trump pro-bono deals. Shows whether Latham faces similar legal or reputational exposure from its own pro-bono arrangement.
Net lateral partner moves between Latham and Sidley Austin reported in legal press over next 12 months. Shows whether partner talent is flowing toward or away from Latham.
Outcome of Skadden shareholder litigation testing Antideficiency Act theory tied to Trump pro-bono deals. Shows whether Latham faces similar legal or reputational exposure from its own pro-bono arrangement.
Net lateral partner moves between Latham and Sidley Austin reported in legal press over next 12 months. Shows whether partner talent is flowing toward or away from Latham.
Key numbers
- FY2025 revenue $8.3B, up 18.6% YoY
- Profit per equity partner ~$8.7M, up ~21% YoY
- Ranked #2 globally behind Kirkland's $10.556B
Named risks
- Political and reputational fallout from $125M Trump pro bono deal, including Senate document demands and client defections.
- Lateral partner attrition to rivals like Sidley Austin could erode key practice groups.
- Headcount and headquarters data inconsistencies across sources create measurement uncertainty.
- Legal AI vendor consolidation (Harvey vs Legora) could shift firm's tooling dependencies or costs.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Kirkland & Ellis | losing to | Kirkland led global revenue at $10.556B vs Latham's $8.3B in FY2025, per April 2026 Am Law data |
| Sidley Austin | losing to | At least 3 Latham partners departed to Sidley since January 2026, most recently a structured finance partner in July 2026 |
| Harvey (legal AI) | gaining on | Latham deployed Harvey firmwide August 2025 and advised Harvey on its Hexus and Lume AI acquisitions in 2026, treating it as a tool supplier |
| Skadden Arps | contesting | Both firms face parallel scrutiny over Trump pro bono deals; Skadden faces shareholder litigation as of July 2026 |
Questions people ask
- Is Latham & Watkins profitable?
- Yes. Latham & Watkins reported record gross revenue of $8.3 billion for FY2025, up 18.6% year over year, with profit per equity partner rising about 21% to roughly $8.7 million, per Am Law 100 data published April 2026.
- Could AI replace Latham & Watkins lawyers?
- Unlikely in the near term. Latham deployed Harvey's AI platform firmwide in August 2025, yet revenue and profit per partner both rose sharply afterward. Bar admission and malpractice liability rules mean only licensed attorneys can practice law, so AI functions as a productivity tool, not a replacement, as of mid 2026.
- Who is Latham & Watkins' biggest competitor?
- Kirkland & Ellis is Latham's closest rival, ranking #1 globally by revenue at $10.556 billion in FY2025 versus Latham's $8.3 billion, per Am Law 100 rankings published April 2026. Both compete for the same elite M&A, private equity, and capital markets mandates.
- Who owns Latham & Watkins?
- Latham & Watkins is a private partnership owned by its equity partners, not a publicly traded company. One 2025 count listed 957 equity partners; the firm's Chair and Managing Partner is Richard M. Trobman as of July 2026.
- Did the Trump administration deal hurt Latham & Watkins' business?
- Latham committed $125 million in pro bono legal work to the Trump administration in April 2025 to avoid punitive executive orders. Some clients, including Morgan Stanley and Microsoft, reportedly moved work elsewhere, and Senators Blumenthal and Raskin sent document-demand letters in April 2025 seeking records on the deal.
- Is Latham & Watkins growing faster than rivals in AI-related legal work?
- Latham says it led all law firms globally in AI data-center deal value in H1 2025 per Bloomberg Law data cited in an August 2025 firm release, and has advised AI companies like Harvey and Tempus AI on acquisitions through 2026, positioning it heavily in AI-adjacent legal work.
Timeline
- 2026-07-13Structured finance partner departs Latham for Sidley Austin, third such move since January 2026
- 2026-07-10Elite capital markets partners join Latham, firm cites continued market leadership expansion
- 2026-04-15Am Law 100 reports FY2025 revenue of $8.3B (+18.6%) and PEP near $8.7M (+21%)
- 2026-03-05Latham advises Harvey on acquisitions of Hexus and Lume AI
- 2026-02-18Report shows 18 lateral partner hires in first seven weeks of 2026 versus 5 in same 2025 period
- 2025-08-22Firm claims #1 global ranking in AI data-center deal value for H1 2025, citing Bloomberg Law data
- 2025-08-10Latham announces firmwide enterprise deployment of Harvey generative AI platform
- 2025-04-18Senators Blumenthal and Raskin send document-demand letters over Trump pro bono deal
- 2025-04-15Am Law 100 reports FY2024 revenue of ~$7.0 billion, up 23% year over year
- 2025-04-11Latham commits $125 million in pro bono legal work under deal with Trump administration
Revision history
23 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Latham & Watkins 2025 Financial Performance (2026-04-15)
- The 2025 Am Law 100 Ranking Is Here! (2025-04-15)
- The 2026 Am Law 100 Is Out (2026-04-15)
- Latham & Watkins Wikipedia (2026-07-23)
- Latham & Watkins, Law Firm Profile
- Elite Capital Markets Partners to Join Latham (2026-07-10)
- Latham Announces Firmwide Deployment of Harvey (2025-08-10)
- Latham Shows How Big Law Cashes In on AI-Driven Data Center Boom (2025-08-22)
- Latham Advises Harvey on Acquisitions (2026-03-05)
- Latham Advises Tempus AI (2026-07-20)
- Trump reaches deals with 5 law firms (2025-04-11)
- Blumenthal-Raskin Letter to LW (2025-04-18)