7 in 10 law firms rank profitability as their top priority

LEAP Legal Software released the Profitability in Law: Global Report 2026, which surveyed more than 700 legal professionals across Australia, New Zealand, the United States, Canada, the United Kingdom, and Ireland.

Globally, the report found that nearly one in five firms (18 per cent) identify profitability as their number one priority, making it the single most influential driver of their business decisions.

In addition, a further 53 per cent of firms ranked profitability as a high priority, meaning that more than two-thirds of legal practices place significant weight on financial performance when shaping their overall strategy.

Michael Johnson, director at Agile Market Intelligence, expressed how the findings highlight that profitability remains an “anchor of decision making” for law firms globally, reflecting the enduring importance firms place on financial performance.

“Profitability remains the anchor of decision making for legal firms globally,” Johnson said.

“With 53 per cent ranking it as a high priority, and nearly one in five placing it above all else, financial performance continues to shape how firms set direction and allocate resources.”

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However, not all markets are approaching profitability in the same way.

The report uncovered that firms in the United States and Canada appear more profit-driven than their counterparts elsewhere, with 23 per cent ranking profitability as their top priority.

This compares to 15 per cent in Australia and New Zealand, and 16 per cent in the United Kingdom and Ireland.

While profitability dominates strategic thinking, the report shows that firms are moving away from one-dimensional strategies.

Instead, the report found that nearly half (45 per cent) of firms are taking a “measured approach”, carefully balancing revenue growth with cost control to drive profitability.

Meanwhile, 32 per cent of firms prioritise revenue growth, and 22 per cent focus primarily on cutting expenses.

The report also highlights Australia and New Zealand’s distinctly growth-led mindset, with 41 per cent of firms in the region prioritising revenue generation, compared to just 12 per cent focusing on cost reduction.

This contrasts sharply with the United States, Canada, the United Kingdom, and Ireland, where firms are “almost equal” between the two approaches.

While firms broadly recognise that profitability requires a balance of revenue and cost, Johnson noted that regional differences remain clear.

“Firms broadly recognise that profitability requires balancing revenue and cost,” Johnson said.

“However, the nuance lies in the regions with a significant number of AU/NZ firms leaning toward revenue growth, while other markets take a more evenly weighted approach.”