Technology Dealtracker: Q2 2026

Technology sector dealmaking gathered pace in Q2 2026, with overall deal volumes increasing 18% QoQ to 80 transactions despite deal values moderating by 35% to USD 2.5 billion due to the absence of mega outbound acquisitions recorded in Q1 (Coforge-Encora deal- USD 2.4 billion). The increase in activity reflects improving market confidence and broader participation across M&A and private equity.

M&A activity strengthened during the quarter, with deal volumes rising 33% QoQ along with strategic acquisitions remaining robust across AI, cloud and digital engineering capabilities. Domestic transactions continued to dominate, while outbound acquisitions highlighted Indian technology companies continued focus on expanding global capabilities.

PE witnessed strong growth marking the highest volumes since Q1 2025 and values surging 81% QoQ to USD 1.5 billion. Investor interest remained concentrated in AI, enterprise technology and digital infrastructure, reflecting renewed confidence while maintaining a disciplined approach towards capital deployment and valuation.

Capital markets witnessed muted activity in Q2 2026, marking the first such quarter since Q2 2023. The slowdown follows an already subdued Q1 2026, which recorded just one IPO & QIP each, raising a combined USD 444 million. While public market activity softened further during the quarter, companies with strong fundamentals, proven profitability, and clear earnings visibility continued to attract investor interest through alternative fundraising avenues, reinforcing the market's preference for quality over scale.