Cybersecurity dealmaking got off to a strong start in 2026, sustaining the momentum of a record-setting 2025. In Q1 2026, 75 cybersecurity transactions were announced, representing an annualized pace broadly in line with last year, despite a moderation in disclosed deal value to $2.2 billion. Activity remained concentrated in the lower and mid market, with no transactions exceeding $1 billion, while leading strategic buyers such as Check Point, Palo Alto Networks and CrowdStrike accounted for approximately $1.1 billion in aggregate deal value.
AI related concerns weighed on cybersecurity equities in Q1, driving a decline in valuation multiples across Kroll’s cybersecurity index. Median EV to next twelve months revenue multiples fell 26% quarter over quarter, while upper quartile multiples declined more sharply.
Looking ahead, we expect cybersecurity M&A activity to remain resilient. Buyer appetite is likely to stay focused on platform consolidation opportunities and differentiated assets aligned with identity security, AI enabled defense, exposure management and cloud security. As organizations shift from reactive threat management to risk driven security models, strategic acquisitions will continue to play a central role in shaping the next phase of cybersecurity platform evolution.
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