Data security company Cohesity is planning a potential initial public offering (IPO) in 2026, targeting a valuation that could match publicly traded peer Rubrik Inc., which currently holds a market capitalization of $17 billion.

Cohesity CEO Sanjay Poonen stated that this move would mark a significant milestone for the NVIDIA-backed company. Cohesity had previously shelved its IPO plans in 2021, choosing instead to prioritize a complex merger with competitor Veritas's data protection division.

The merger was completed in December 2024, making Cohesity the world's largest data protection software provider. The combined entity was valued at over $7 billion at the time of the merger.

Poonen noted that the merger integrated his rapidly growing but not-yet-profitable company with the larger, profit-generating Veritas business, representing a high-risk but carefully considered transaction.

"I evaluated the possibility of going public independently in 2022, but among numerous competitors, we would have been just a 'small fish,'" Poonen told media, referring to competitors including Rubrik Inc. and Commvault. "That wasn't the outcome I wanted."

He added: "We wanted to become the 'big fish' in the industry, capturing the largest market share before going public."

This industry-leading position has been achieved through the merger: Cohesity previously held a 5% market share, and after acquiring Veritas's 14% share, the combined entity now leads the highly fragmented industry with a 19% market share, according to RBC Capital Markets research.

Poonen indicated that once the merged entity can provide a full fiscal year of performance data to public market investors, the company will be ready for listing, potentially as early as "early next year."

The CEO also mentioned that Cohesity's fiscal year ends in August, meaning the company could alternatively choose to launch its IPO in fall 2026.

"I believe that if business continues to perform as well as it currently does, 2026 will be an appropriate time to go public," Poonen added.

Cohesity's valuation expectations are benchmarked against Rubrik Inc., which went public in April 2024 and currently trades at approximately $17 billion market capitalization.

According to FactSet data, Rubrik Inc. currently trades at a price-to-sales ratio of 12.75 times, while smaller peer Commvault trades at 7.16 times.

Poonen believes that the larger merged Cohesity, if it can demonstrate similar performance metrics, should be valued "comparable to or higher than Rubrik Inc."

"We are now a bigger 'ship' than them," he stated.

If the IPO valuation reaches or exceeds Rubrik Inc.'s level, it would mean Cohesity's valuation could more than double since its 2023 merger with Veritas. This would generate substantial returns for early investors, including Sequoia Capital, Wing Venture Capital, Battery Ventures, Accel Partners, as well as later-stage investors SoftBank, Morgan Stanley Expansion Capital, and Baillie Gifford.

However, Poonen emphasized that management's core focus remains driving profitable growth for the company. "We're not focused on the company's current stock price," he explained. "Rather, if you can create long-term customer value and profitable growth, valuation will naturally follow - it's a natural outcome."

In the fiscal year ending July 2024, Cohesity achieved $1.5 billion in annual recurring revenue (ARR) with an adjusted profit margin of 28%. Prior to the merger, Cohesity's year-over-year growth rate was slightly below 30%, while Veritas's growth rate was approximately 5%.

RBC Capital Markets analysts indicate that the merged company is expected to achieve mid-double-digit growth.