The 2026 IPO surge is taking shape as Wall Street banks point to fuller pipelines and stronger client engagement.
Executives say deal talk is rising across sectors, after a 2025 rebound that lifted confidence in underwriting and advisory fees.
What banks are seeing
Bank leaders describe an “accelerating pipeline” in mergers and initial public offerings. Morgan Stanley’s CFO Sharon Yeshaya told Reuters that the firm expects more activity in healthcare and industrials. She also said sponsors have more flexibility, with exits possible through either an IPO or an M&A sale.
JPMorgan’s CFO Jeremy Barnum offered a similar message. He told analysts the bank expects strong engagement and deal activity in 2026, which is reflected in its pipeline. That tone matters because pipelines often drive staffing, pricing, and mandate competition months ahead.
This is the core setup for the 2026 IPO surge: banks are signaling confidence early, and they are doing it in public earnings season.
What changed in 2025
The 2026 IPO surge narrative is rooted in a measurable 2025 recovery. Dealogic data cited by Reuters shows global investment banking revenues crossed $100 billion in 2025. That threshold marked a return of fee power after years shaped by high rates and volatile markets.
Large banks also reported sharp fourth-quarter improvements tied to dealmaking. Goldman Sachs said investment banking fees rose 25% to $2.58 billion year over year. Morgan Stanley reported a 47% jump in investment banking revenue, helped by debt underwriting and M&A momentum.
In parallel, M&A volumes swelled. Dealogic data cited by Reuters put global M&A at $5.1 trillion in 2025, up 42% from 2024. Bigger volumes tend to pull forward follow-on financing and recapitalizations, which can reinforce the 2026 IPO surge thesis.
Where the 2026 pipeline is forming
Bankers and investors are pointing to two main feeders for the 2026 IPO surge: marquee listings and sponsor-led exits.
IPO watchlist
Reuters reports that the roster of high-profile companies exploring 2026 IPOs has grown. Names floated in that reporting include OpenAI, SpaceX, and AI chipmaker Cerebras. These are not confirmed timetables, but the chatter shows where bankers expect fee-rich mandates.
Separate Reuters reporting has also tracked SpaceX’s IPO planning, including banker positioning around roles and timing. That adds weight to the idea that the 2026 IPO surge could feature very large, globally watched listings.
Cerebras has its own timeline signals. Reuters reported the company was preparing to file after a delay, with an aim around 2026 timing. If more AI-linked issuers follow, the 2026 IPO surge could be defined by compute, infrastructure, and enterprise software demand.
M&A and sponsor exits
Private equity and venture capital are also expected to re-engage. Reuters notes sponsor-led activity may pick up in 2026 as firms seek exits after waiting for valuations and demand to recover. A stronger sponsor calendar can lift both M&A advisory and IPO underwriting, supporting the 2026 IPO surge from two angles.
Bankers point to the return of large transactions as proof of risk appetite. Reuters highlighted Electronic Arts’ proposed $55 billion take-private deal as a standout example of scale returning to the market. Deals of that size tend to reset confidence about financing depth.
Risks that could cap the 2026 IPO surge
The 2026 IPO surge is not guaranteed. Bank leaders still flag shifting market conditions and geopolitical risk. Morgan Stanley’s CEO Ted Pick warned about a “complicated” macro backdrop, even while expressing optimism.
Policy surprises can also interrupt issuance windows. Reuters noted that 2025 activity held up despite tariff-related volatility earlier in the year, but those shocks show how quickly calendars can change. For IPO candidates, timing is often the difference between a clean launch and a delay.
What it means for investors
If the 2026 IPO surge materializes, it supports a fee-growth outlook for large investment banks. It can also raise competition for mandates, pressuring pricing on some deals while rewarding banks with stronger sector coverage.
For markets, a sustained 2026 IPO surge is usually read as a risk-on signal. It suggests equity investors are willing to fund growth stories again, and that boards and sponsors see valuations as acceptable. Still, the quality of listings will matter as much as the quantity.
What to watch next
Watch for: updated IPO filings, sponsor exit announcements, and earnings-call pipeline language that confirms the 2026 IPO surge is moving from talk to timetables.