Goldman Sachs sees no Israel tech IPOs on Wall Street in 2026

Goldman Sachs International co-CEO Anthony Gutman does not expect Israeli high-tech companies to list on Wall Street in 2026, citing a lack of readiness and weak post-listing results from recent IPOs.

Gutman noted that the minimum annual revenue threshold for going public is now roughly US$500 million, as investors demand better profitability. This higher bar potentially leaves firms like Cato Networks—which has a US$350 million revenue run rate—short of the level needed to reach its targeted US$5 billion valuation.

The pessimistic outlook follows a string of poor performances from Israeli 2025 IPOs. eToro is trading near US$2.6 billion (down 40%), Via near US$1.5 billion (down 60%), and Navan near US$2.6 billion (down 65%) from their respective debuts.

Despite the IPO freeze, Gutman expects M&A activity in Israel to continue. Private capital and foreign buyers, including US tech giants and European companies, remain active in seeking deals within the region.

🔗 Source: Calcalist

🧠 Food for thought

Implications, context, and why it matters.

Mega-deals, not IPOs, are the new exit strategy

Israeli tech firms are working through a cybersecurity M&A market with more than $84 billion in disclosed deal volume in 2025, and buyouts now lead exits 1.
This surge comes from “super-platform” buyers such as Google and ServiceNow that want to merge security, IT operations, plus engineering into single data structures 1.
Big purchases like Google’s $32 billion buy of Wiz plus Palo Alto Networks’ $25 billion buy of CyberArk give founders quicker, often larger outcomes than a risky IPO 2, 1.
Prices have climbed. Wiz landed at about 64 times Annual Recurring Revenue (ARR), which makes the private market feel tougher to beat with a public listing and it can pay less 3.

AI is already reshaping hiring and spending, even as economy-wide productivity gains remain elusive

Gutman’s caution on AI pricing matches Goldman’s own research, which finds “no meaningful relationship” so far between AI adoption and economy-wide productivity 4.
Benefits stay concentrated in areas such as software development work plus customer support, with a median productivity lift near 30% 5.
The gap supports a market powered by story. About 70% of S&P 500 management teams talk about AI, while only 1% put numbers on earnings impact 4.
Clear signals include slower hiring plus heavier infrastructure spending 4. Firms that tied AI to workforce plans cut job openings by 12% over the past year, while analysts raised 2026 capital expenditure (capex) expectations for hyperscalers (the biggest cloud providers) to $667 billion 4.