Technology Dealtracker: Q3 2026

Q3 2026 witnessed a marginal 5% decline in deal volumes, while values increased by 38% over Q2 2026, driven by a billion-dollar transaction and stronger IPO/QIP activity, which was muted in the previous quarter. The increase in values was supported by a concentration of high-value transactions, signaling sustained investor appetite for scaled assets despite a moderation in overall deal activity.

M&A values in the quarter nearly tripled from USD 997 million in Q2 to USD 2.8 billion this quarter, even as volumes fell from 28 to 25 deals. Value growth was driven by large cross-border transactions, with outbound deals contributing USD 1.8 billion across six acquisitions. Notably, Persistent Systems’ acquisition of Nagarro SE for USD 1.4 billion was the third-largest outbound transaction in the sector’s history.

PE/VC generated 59% of the overall volumes, yet only around 10% of the overall disclosed values. However, funding value declined significantly from USD 1.5 billion in Q2 to USD 301 million in Q3, reflecting a more selective investment environment and smaller average ticket sizes. Early-stage investments accounted for nearly 79% of funding rounds, from pre-seed to Series A.

IPO and QIP activity strengthened in Q3 2026 after a muted quarter in Q2 2026, with six transactions raising USD 398 million. Both deal count and capital raised increased, giving capital markets a larger contribution to the quarter’s broader technology deal snapshot.