Could Texas be the next big growth market for California law firms?

Texas grows as a hub for California firms

Texas is no longer just pulling in California companies. Several Los Angeles-founded law firms are reporting major growth in Texas, especially in Dallas and Houston, with some also building up Austin as client demand expands.

The Texas Lawbook reported that five Southern California-founded firms together generated more than $1.26 billion in Texas revenue in 2025. That is a big sign that legal talent is following business migration, private equity, energy, and major courtroom battles.

Latham & Watkins expands reach

Latham & Watkins has become one of the strongest examples of California-founded legal growth in Texas. Reporting says Latham’s Texas footprint includes Austin, Houston, and Dallas, and the firm has expanded deeper into energy, private equity, and major transactions.

Reports say Latham’s Texas revenue reached $388 million in 2025, far above its level a decade earlier. That kind of jump shows how Texas has become a core market, not just a side office.

O’Melveny & Myers grows fast

O’Melveny & Myers opened its Texas offices later than some rivals, but its growth has been fast. The Los Angeles-founded firm launched in Austin and Dallas in 2021 and has since built a stronger Texas platform.

The Texas Lawbook reported that O’Melveny’s Texas lawyers generated $133.3 million in 2025, up 41.3% from the prior year. That made it one of the standout growth stories among firms chasing Texas work.

Clients helped lead the move

California law firms did not wake up one day and randomly pick Texas. Many followed the same corporate trail as clients, including companies drawn by taxes, land, energy access, lower costs, and business-friendly policies.

That client movement created legal demand. When headquarters, factories, data centers, and investment teams move, they need lawyers for leases, mergers, hiring, permits, lawsuits, contracts, tax questions, and financing.

Dallas became a legal magnet

Dallas has become one of the hottest legal markets in the country. National firms have opened offices there, hired local partners, and pursued work in private equity, real estate, finance, technology, and litigation.

Reuters reported that several out-of-state firms expanded into Dallas in recent years as corporate relocations lifted the city’s legal demand. For California firms, Dallas offers clients, talent, and a growing business base in one place.

Fun fact: Dallas ranks as the ninth-largest U.S. city by population.

Houston still powers big deals

Houston remains a natural draw for major law firms because energy work is still huge. Oil, gas, power, renewables, infrastructure, and private equity all create steady demand for high-end legal advice.

That helps explain why firms like Gibson Dunn, Latham, Paul Hastings, and Sheppard Mullin want strong Houston teams. When energy markets shift, companies need lawyers for deals, disputes, financing, regulation, and project risk.

Fun fact: Houston is often described as the ‘energy capital of the world,’ reflecting the size of its energy sector and related companies.

Paul Hastings made a leap

Paul Hastings has become one of the fastest-moving names in this Texas story. The firm opened in Houston in 2012, added Dallas in 2023, and then grew quickly through high-profile hiring.

The Dallas Morning News, citing Texas Lawbook 50 data, reported its Texas revenue jumped from $56.7 million in 2023 to $200.5 million in 2025. That is the kind of growth that gets attention across the legal industry and pushes rivals to defend their own client relationships.

Sheppard Mullin found its lane

Sheppard Mullin is another Los Angeles-founded firm that has turned Texas into a growth story. It opened in Dallas in 2018 and in Houston in 2022, then kept adding lawyers and client work.

The firm reportedly reached $119.6 million in Texas revenue in 2025. That matters because it shows Texas is not only rewarding the oldest players. Later arrivals can still gain ground if they hire well and match the market’s needs.

Lateral hiring changed the race

Texas law firm growth has been fueled by lateral hiring. That means firms recruit experienced lawyers from competitors, often bringing clients, local ties, and market knowledge with them.

That strategy can move fast, but it is expensive. Top partners in Texas can command major pay packages because their relationships matter. For California-founded firms, landing the right Texas lawyers can unlock years of business in one move.

Litigation is part of the boom

Texas is not only a deal market. It is also a major litigation market, with high-stakes business disputes, energy fights, intellectual property cases, and the launch of Texas’ new Business Court system has added another venue for complex disputes.

Gibson Dunn’s Texas lawyers, for example, have pointed to major courtroom wins and busy litigation demand. For firms with trial power, Texas can deliver the kind of big cases that build reputation and revenue simultaneously.

Law schools feed the pipeline

Big firms also need younger lawyers, not just star partners. Texas law schools give firms a local pipeline of associates who understand the region and may want to build long-term careers there.

That helps California-founded firms become more rooted. Hiring Texas graduates makes an office feel less like an outpost and more like a permanent part of the state’s legal community.

Texas work keeps diversifying

The Texas legal market is no longer only about oil and gas. Energy still matters, but firms are also chasing technology, infrastructure, finance, aviation, defense, real estate, health care, and private capital work.

That mix helps explain why California law firms fit in. They bring experience from tech, entertainment, finance, global deals, and complex litigation, then match it with Texas’ growth in energy, industry, and corporate relocation.

To see how companies are raising bigger questions about California’s economic future, find out how California’s business departures are sending a deeper warning about the future of growth and jobs.

Texas may keep pulling firms

The Texas opportunity is no longer a rumor for California-founded firms. Gibson Dunn, Latham, O’Melveny, Paul Hastings, and Sheppard Mullin have all shown that big Texas offices can produce serious revenue.

The next question is how crowded the market gets. As more firms arrive, competition for clients and lawyers will rise. Still, as long as companies keep expanding in Texas, the legal market may continue to reward firms that moved early and hired wisely.

To see how Texas is also making room for smaller companies to grow, find out why Texas small business owners just got a $122,500 bigger tax break starting in 2026.

Do you think Texas is becoming too attractive for major firms to ignore? Share your thoughts and drop a comment.

This slideshow was made with AI assistance and human editing.

Read More From This Brand:

• Texas ranks third among U.S. states for business startups in 2026
• Corporate America is moving to Texas—here’s why
• California businesses face higher taxes after state lost $55 billion in unemployment fraud