It's no secret that the initial public offering (IPO) market has undergone some selective recovery with structural changes over the last few years. Market volatility, geopolitical instability and increased interest rates are just a few of the forces that have tampered enthusiasm for initial public offerings. Most observers would characterize the period of 2024-2025 as more of a reset period than a rebound bubble. Investors, burned by past setbacks, are refocusing their efforts to prioritize quality, governance, and profitability when evaluating an opportunity. Another side effect of the most recent developments is that IPOs are no longer window-driven, and IPO readiness must be an ongoing, continuous consideration. Read on to learn more about IPO trends that include predictions for IPO volume as we move into 2026.
Overall IPO Volume and Growth
In 2025, the U.S. stock market saw a grand total of 347 IPOs including SPACs. This represents a 54% increase over the 225 IPOs recorded in 2024. In the first half of the year alone, there were 166 IPOs, and Q3 added 97 more for the most-active quarter since 2021. IPOs backed by venture capital dominated the scene in 2025, averaging surges of 450% post-IPO compared to only 18% for those backed by private equity.
IPO Market Trends
How the IPO market shakes out in 2026 will have a lot to do with the impact of some critical macro trends. Although interest rates seem to be stabilizing, investors are expected to maintain a similar level of capital discipline. This is due in large part to ongoing volatility in the form of geopolitical strife, AI-driven sector rotation, and regulatory scrutiny. At the same time, strong performance in the public market is no longer enough to open an IPO window, and companies need to demonstrate cash flow visibility, governance maturity, and reporting readiness to make an impression on investors.
Taking a look at the overall market given these expected conditions, there are a few rising IPO trends to highlight.
1. Sector Activity Becomes More Concentrated
One of the most consistent IPO trends over the last few years has been the dominance of, pharmaceuticals, technology, and life sciences companies. Consumer IPOs have experienced fewer listings, but stronger brands with profitability narratives succeed. In general, investors tend to prefer companies with a clear TAM, defensible differentiation, and predictable revenue models.
For the moment, AI continues to be a hot commodity within the technology IPO market. Companies that specialize in this technology are leading the way in driving higher IPO activity. The strong investor interest they’ve generated has been a major contributor to IPO proceeds increasingly to a significant degree. However, infrastructure, cybersecurity, and data platforms also outperform consumer apps in most cases.
2. Valuation Discipline Replaces Growth-at-All-Costs
The IPO landscape is a far cry from the heights of 2021, which indicates that the voracious appetite investors had a few years ago has been tempered. Trends have shown that overvaluing IPOs leads to weak aftermarket trading and delayed follow-on capital. As such, investors now are taking a more-cautious approach, rewarding companies that show credible pricing and post-IPO performance stability. At the same time, companies are now delaying their IPOs so they have time to simplify their structures, improve margins, and clean up their reporting.
3. SPAC Activity Continues — With Tighter Constraints
By 2025, the SPAC market reached an important point of normalization—not a revival of the speculative surge that defined earlier years, but a return to functioning as a more balanced and efficient capital‑markets instrument. After a prolonged period of liquidations, terminations, and regulatory recalibration, SPAC activity began to stabilize, supported by seasoned sponsor teams operating with clearer guardrails and greater discipline. This shift helped reposition SPACs as a credible, purpose‑built structure for targeted acquisitions rather than a vehicle for unchecked exuberance, marking a mature and more sustainable phase for the product. New issuance more than doubled in 2025 verse 2024.
4. Global Issuers Continue to Target U.S. Markets
Among global IPO trends, there has been an increase in international companies seeking listing on the U.S. exchanges. Investors see this as a natural way to diversify their portfolio and enjoy gaining access to international companies through their U.S. listings. The U.S. exchanges offer investors liquidity, analyst coverage, and institutional depth. However, there’s also increased complexity as well as higher burden surrounding reporting and governance documentation.
5. Regulatory and Reporting Readiness Drives IPO Timing
With the SEC focusing on Non-GAAP metrics, cybersecurity disclosures, and ESG and climate claims, reporting readiness has become a gating factor when it comes to IPOs. In general, companies with weaker controls, manual reporting, and fragmented data face longer review cycles than companies who don’t. This has prompted many companies to invest in financial reporting software, collaboration workflows, and audit-ready documentation to accelerate their IPO readiness.
Notable IPOs in 2025
No roundup of global IPO trends would be complete without a mention of some of the more buzzworthy public offerings that broke out in 2025.
Top notable recent IPOs include:
CoreWeave (NASDAQ: CRWV): This AI cloud infrastructure provider backed by Nvidia achieved an enterprise value of $107.4 billion upon its listing in early 2025, closing 42% above its IPO price by the third day. It remains the largest tech IPO since 2021, with a current market cap of $39.2 billion.
Figma (NYSE: FIG): A design software company, this IPO raised more than $1.2 billion in its debut on the NYSE, reaching a market cap in excess of $56 billion and currently valued at $17.9 billion. Figma topped multiple lists as the year’s biggest IPO.
Chime Financial (NASDAQ: CHYM): This digital banking fintech company went public with a $12.5 billion market cap at an IPO price of $27, valued at $11.6 billion. It heralded a rebound for fintechs.
Circle Internet Group (NYSE: CRCL): This stable cryptocoin issuer debuted with a valuation of $8.1 billion, and now trades at a $19.7 billion market cap, delivering strong performance post-IPO with venture capital-backed surges.
Medline (NASDAQ:MDLN): Leading medical supplies manufacturer and distributor, raised $6.3 billion by offering 216 million shares at $29 each, and now trades at a market cap of $34.77 billion. This is the largest offering since 2021.
Other notable IPOs from 2025 included SailPoint (NASDAQ: SAIL) at $12.4 billion market cap for identity management, Smithfield Foods (NASDAQ: SFD) in food processing, Caris Life Sciences at $6 billion for AI-driven cancer diagnostics (with 113% YoY revenue growth in Q3), and Navan in travel tech.
How Companies Should Prepare for an IPO in 2026
Preparation is key when it comes to IPO readiness. Focusing on financial reporting discipline, governance documentation, ESG strategy clarity, and scenario planning make for a smoother IPO process.
While there have been impressive deals as of late, there is no certainty when it comes to valuation and public sentiment. External forces such as geopolitics can foster rapid changes in the market's appetite for IPOs. Issuers should actively monitor the environment, stay flexible on valuation, and be prepared to adjust their timing. The ability to pause or move decisively will be critical in navigating today’s IPO markets.
Meanwhile, companies can tap into the trends that excite investors. Companies that demonstrate measurable disclosure readiness will be in a much better position than those that don’t.
IPO Market Outlook for 2026
With 2026 shaping up to be one of the busiest IPO years in recent memory, a growing wave of companies is preparing to enter the market—many with stronger fundamentals and more disciplined execution than in prior cycles. An IPO is increasingly becoming a strategic component of a broader capital plan rather than an end goal on its own. In a crowded and highly scrutinized issuance environment, the companies that will stand out are those that demonstrate credibility, transparency, and operational maturity.
Key Takeaways
The 2026 IPO market is one that will favor companies who are ready, not merely ones who are hopeful. Reporting, governance, and discipline will matter just as much as growth, if not more. When it comes to preparing an IPO, don't underestimate the importance of IPO software for getting organized, communicating value, and demonstrating priorities (including ESG) to stakeholders. DFIN's IPO software helps companies accelerate their IPO or SPAC timeline while staying organized from the roadshow and S-1 filing through to post-IPO daily operation.