2026 is not over, but it is already clear it will be remembered as one of the most dramatic years in Israeli tech history: exits of unprecedented size, mega-rounds in cyber and AI, and at the same time a wave of layoffs at software companies. Before the year ends, here is a look at the moments that have defined it so far.
The exits. In March Google completed its $32 billion purchase of Wiz, the largest deal in Israeli tech history. A month earlier Palo Alto Networks completed its roughly $25 billion acquisition of CyberArk, and right after signed to buy Koi Security, for about $400 million according to reports. October brought two more big deals: Proofpoint agreed to buy Varonis for $6.3 billion, and Intel announced it will acquire quantum computing company Classiq for about $2.2 billion net.
The funding. According to IVC and LeumiTech, Israeli tech companies raised about $11 billion in the first nine months, up 50%, with cyber accounting for 38%. Cyera is reportedly in talks to raise at a valuation of about $20 billion, and Upwind raised $400 million at a $3.8 billion valuation. Even quantum computing, until recently a niche, has become an arena of hundreds of millions of dollars.
The layoffs. On the other side, it was a hard year for software companies. In July monday.com announced it would cut about 20% of its workforce as part of a shift to AI, and in recent months Atera, Fireblocks, SolarEdge and Fiverr, whose active buyers fell 25.8%, joined in. According to a Calcalist analysis, AI is splitting tech in two: software under pressure while chips, infrastructure and cyber grow. Nova, Camtek and Tower posted record quarters this week.
What else is ahead before the end of 2026? In the coming weeks more Israeli companies will report third-quarter results, including the Tel Aviv Stock Exchange and Nayax. Markets will also show whether the sharp fall in chip and AI stocks on Wall Street after the US midterms is a temporary correction or the start of a trend. Either way, this year has already shown that Israeli tech is not just surviving the AI era but reshaping itself within it.
