Cohesity Aims for IPO in 2026 with Market Lead and $7 Billion Valuation

Cohesity is preparing for an IPO in 2026 after acquiring Veritas' data protection arm, creating the industry's largest player with 19% market share and a valuation of over $7 billion. The company, backed by Nvidia, weighed going public earlier but held back to achieve market leadership. It aims to trade at a comparable or superior valuation to Rubrik, currently valued at $17 billion.

Data security firm Cohesity is gearing up for a potential initial public offering (IPO) in 2026, aiming for a valuation that could rival its publicly traded competitor Rubrik. According to CNBC [1], Cohesity's CEO Sanjay Poonen has indicated that the company is targeting a valuation similar to Rubrik, which currently has a market capitalization of approximately $17 billion.

Backed by Nvidia (NASDAQ:NVDA), Cohesity has been strategically positioning itself to become a dominant player in the data protection market. The company previously shelved its IPO plans in 2021 to focus on a merger transaction with the data protection division of Veritas. This merger, completed in December 2024, has significantly bolstered Cohesity's market share and valuation [2].

The merged entity now holds a 19% market share, making it the largest data protection software provider globally. Prior to the merger, Cohesity held a 5% market share, while Veritas held a 14% share. The merger has positioned Cohesity to capture the largest market share before going public [2].

Poonen has stated that the company is now ready to provide full fiscal year's performance data to public market investors, which could facilitate an IPO as early as "early next year." Cohesity's fiscal year ends in August, suggesting a potential IPO in the fall of 2026 [2].

The company aims to achieve a valuation comparable to or higher than Rubrik. Poonen believes that a larger Cohesity post-merger should be valued "at par with or higher than Rubrik" if it can demonstrate comparable performance metrics. If Cohesity reaches this valuation, it would imply a more than doubling of its valuation since the merger with Veritas in 2023 [2].

Early investors, including Sequoia Capital, Wing Venture Capital, Battery Ventures, Accel Partners, SoftBank, Morgan Stanley Expansion Capital, and Baillie Gifford, stand to benefit significantly from this potential IPO. However, Poonen emphasizes that the management team's core focus is on driving profitable growth rather than the current stock price [2].

In the fiscal year ending July 2024, Cohesity's Annual Recurring Revenue (ARR) reached $1.5 billion, with an adjusted profit margin of 28%. The merged company is expected to achieve moderate double-digit growth [2].

Cohesity's IPO plans represent a significant milestone in Nvidia's investment in the company. As it prepares for its public debut, Cohesity is poised to play a pivotal role in the data protection industry, backed by its strategic merger and ambitious growth targets.

References:
[1] https://seekingalpha.com/news/4492125-nvidia-backed-cohesity-targets-2026-ipo-eyes-rubrik-sized-valuation---report
[2] https://news.futunn.com/en/post/61663155/nvidia-backed-enterprise-cohesity-plans-to-launch-an-ipo-in