Over three quarters (78%) of Financial Planning firms expect their profits to grow in 2026, according to a new report.
A third of advisers said they expect their profits to jump by more than 20%
Nine out of ten of the financial advice firm owners surveyed by The Langcat for their annual State of the Adviser Nation report said their turnover has risen over the past year.
There had been a clear shift in priorities for firms over the past year, with artificial intelligence topping the list for 40% with adoption jumping from 29% to 60% year on year.
However, advisers still had concerns about the adoption of AI in areas like governance and security. A third (35%) said they are not confident in the data security of AI tools used.
Tax planning was also a more important area than the previous year’s survey, with it being cited as a priority by 39% of firms.
When asked to describe the 2025 year in a word, ‘challenging’ featured heavily after market turbulence and anxious clients needing extra support.
Steven Nelson, insights director at The Langcat, said: “This year’s findings build on seven years of insight into how the profession is really feeling about what’s going on right now. Market volatility alongside political uncertainty have fed straight into planning and business decisions, and there’s no doubt 2025 has been a messy, demanding year. But there is optimism too with firms reporting record turnover and profits, as demand for advice shows no sign of slowing down.”
Advisers shared concerns about the number of younger people entering the market. Half of the advisers surveyed (46%) said better pathways are needed via schools, colleges and universities, alongside improving visibility through things like financial education in schools.
Younger advisers shared concerns about the training and support offered by their employers. Almost a third (30%) felt that this was inadequate and 38% see a lack of mentorship or guidance as the biggest barrier to their success.
What do you think is the best way to bring more people into the profession?
Source: The Langcat, State of the Adviser Nation report, 4 February 2026
Advice firm consolidators were continuing to approach adviser firms. For almost all firms, sizeable numbers had been approached by consolidators within the last week, ranging from 28% of those in the under £50m bracket to up to 50% of firms in the £100m-250m range.
Selling to a consolidator remained the most popular route for firm owners considering exit, with 16% considering this option.