A&O Shearman, formed by the merger of Allen & Overy and Shearman & Sterling, announced its first financial results since the May 2024 merger. The firm reported client revenue of £2.9 billion ($3.7 billion) for the financial year ending April 30, 2025. Profit before tax stood at £1.1 billion ($1.4 billion). The profit per equity partner (PEP) for A&O Shearman was £2.0 million ($2.6 million).
These figures mark the first combined results for the newly merged entity. The firm emphasized that legacy financials from Allen & Overy and Shearman & Sterling are not directly comparable due to differing financial years and accounting methods. However, A&O Shearman stated that, on a like-for-like basis, its FY25 PEP is higher than the prior year PEP of both individual legacy firms. The firm also highlighted investments in the combined entity and the integration of its global partnership.
Despite the positive first-year revenue, the £2.0 million PEP for A&O Shearman is slightly below the £2.2 million that Allen & Overy partners received in its last pre-merger financial year. It also lags behind some competitors, with Linklaters reporting a PEP of £2.2 million and Clifford Chance reporting over £2.1 million. However, A&O Shearman's revenue of £2.9 billion ($3.7 billion) surpassed Linklaters' £2.32 billion and Clifford Chance's £2.4 billion. The firm also acquired new talent, including 33 internal partner promotions and 16 strategic lateral hires during this period.
