Data security firm Cohesity is considering an initial public offering (IPO) in 2026, aiming for a valuation comparable to Rubrik, its publicly traded peer valued at approximately $17 billion. This potential move follows a strategic merger with Veritas’ data protection unit, according to Cohesity CEO Sanjay Poonen.
In 2021, Cohesity paused its IPO plans to pursue a merger with Veritas’ data protection unit. This merger was finalized in December 2024, creating a prominent data protection software provider with a combined valuation exceeding $7 billion. Poonen characterized the merger of Cohesity and Veritas as a calculated risk, designed to establish Cohesity as a market leader before entering the public market. Speaking to CNBC, Poonen explained that a smaller IPO in 2022 would have positioned Cohesity as “a smaller fish” among competitors like Rubrik and Commvault.
Poonen emphasized the strategic importance of achieving market leadership before pursuing an IPO. He stated, “We wanted to be the biggest fish, have the biggest market share, and then go public.” This ambition drove the decision to merge with Veritas.
Cohesity’s market share significantly increased through the acquisition of Veritas’ data protection unit. Prior to the merger, Cohesity held approximately 5% of the market. Veritas, on the other hand, possessed a 14% market share. The combination of these entities resulted in a new market leader with a combined share of 19% in what RBC Capital Markets characterizes as a highly fragmented industry.
Poonen has indicated that Cohesity could be ready for an IPO as soon as it can present a full financial year’s results for the combined entity to public market investors, potentially as early as “early next year.” He specified that Cohesity’s financial year concludes in August, suggesting a possible IPO in the fall of 2026. “I think if the business continues to be doing well, like it is, 2026 will be the year,” Poonen stated, emphasizing the importance of sustained business performance.
The technology sector has witnessed an increase in IPO and M&A activity among companies with valuations of $1 billion or higher. According to data from Crunchbase, 25 unicorns have either gone public or been acquired between May 2024 and May 2025. This figure represents an increase compared to the 15 unicorns that exited through IPOs or acquisitions during the same period in the previous year. This increase highlights a growing trend of high-valuation exits in the tech industry.
Analysts have cautioned that macroeconomic volatility could present challenges to IPO and M&A activity. Factors such as changes in U.S. tariff policy and instability in the interest-rate outlook have the potential to disrupt market conditions. Laia Marin i Sola, equity analyst at Barclays, noted in a July note to clients that “macroeconomic volatility has weighed on exits,” despite increased unicorn-scale exit activity earlier in the year. These macroeconomic factors introduce uncertainty and potential hurdles for companies considering public offerings or mergers.
Cohesity’s valuation expectations are closely tied to the performance of Rubrik, which went public in April 2024 and currently has a market capitalization of approximately $17 billion. According to FactSet data, Rubrik trades at a price-to-sales multiple (P/Sales) of 12.75. Commvault, a smaller peer, trades at a P/Sales multiple of 7.16. Poonen has argued that Cohesity, as the larger entity following the merger, should command a “comparable or superior valuation” if it can demonstrate similar performance metrics to Rubrik. “We’re a bigger ship than them,” he stated, suggesting that Cohesity’s size and market position justify a higher valuation.
A successful IPO at or above Rubrik’s valuation would significantly increase Cohesity’s valuation, potentially more than doubling it since the 2023 merger with Veritas. This increase would result in substantial financial gains for early investors, including Sequoia Capital, Wing Venture Capital, Battery Ventures, and Accel Partners. Later-stage investors such as SoftBank, Morgan Stanley Expansion Capital, and Baillie Gifford would also benefit from the increased valuation.
Poonen emphasized that the management team is primarily focused on achieving profitable growth and creating long-term customer value. “Our focus is not the current share price of the company,” Poonen explained. He added, “If you create long-term customer value and profitable growth, valuation just comes. It just happens.” This statement underscores the company’s commitment to sustainable business practices rather than short-term stock market performance.
For the year ending July 2024, Cohesity reported annual recurring revenue (ARR) of $1.5 billion and an adjusted profit margin of 28%. Prior to the merger, Cohesity experienced year-over-year growth of approximately 30%, while Veritas grew at around 5%. RBC Capital Markets analysts project that the combined company will achieve growth in the mid-teens. These financial metrics highlight the potential for continued growth and profitability following the merger.
The integration of artificial intelligence (AI) has presented both opportunities and challenges in the realm of cybersecurity. While AI can enhance defenses against cyberattacks and reduce the cost of breaches, it also introduces new vulnerabilities and risks. According to IBM’s Cost of a Data Breach Report 2025, the average cost of a data breach decreased by 9% to slightly over $4.4 million. JPMorgan analyst Brian Essex noted that “the use of AI contributed to the reduction in cost, but improper AI implementation and use of shadow AI introduced significant cybersecurity risks.” This highlights the need for careful and responsible AI implementation to mitigate potential security threats.
Despite the decrease in the average cost of cyberattacks, the cybersecurity sector continues to expand as more companies prioritize cybersecurity incidents. A report by security technology firm Fortinet revealed that four out of five large enterprises intend to elevate cybersecurity to a C-suite level responsibility within the next year. This trend reflects the growing recognition of cybersecurity as a critical business imperative.
Cohesity’s growth strategy includes a key partnership with Nvidia, an AI chipmaker and investor. This collaboration has led to the development of Cohesity’s flagship AI product, Gaia. Gaia applies Retrieval-Augmented Generation (RAG) to traditionally backed-up data, transforming it into an AI-powered enterprise search assistant. Poonen stated that the idea of applying RAG to backup data originated from discussions with Nvidia CEO Jensen Huang and Microsoft CEO Satya Nadella. “We were the first to implement RAG to backup,” Poonen said. “That’s what got Nvidia’s interest. They got it immediately. They put money in the company to back us.” Nvidia’s investment underscores the potential of Cohesity’s AI-powered data management solutions.
Poonen views a successful IPO as a significant milestone but not the ultimate goal for Cohesity’s long-term strategy. He concluded, “It’s a milestone. It’s a very important milestone, but it’s not the destination.” This statement emphasizes the company’s focus on sustained innovation and customer value creation beyond the IPO.
