Cato Networks, the converged network and security cloud for the AI era, today announced that it has surpassed $415 million in annual recurring revenue, up 42% year over year, as demand from large enterprises continued to accelerate in the second quarter.
The company, which develops a cloud-native platform combining networking and cybersecurity, said it signed several multimillion-dollar ARR contracts during the quarter with customers in manufacturing, robotics, telecommunications and data analytics.
Cato Networks
(Photo: Yifat Yogev)
Cato now serves more than 4,800 customers, including a growing number of Fortune 500 and Global 2000 companies.
“Surpassing $415 million in ARR validates what we are seeing across the market,” co-founder and CEO Shlomo Kramer said. “Enterprises need security, resilience and agility that legacy architectures were never built to deliver.”
Kramer said the growing adoption of artificial intelligence is increasing both the speed of business and the complexity of security risks, prompting companies to move toward cloud-native platforms.
Among the deals completed in the second quarter, a Fortune 500 company with nearly 50,000 employees adopted Cato AI Security to support its expansion of AI use without adding security personnel.
A technology manufacturer with more than 150,000 employees purchased the Cato SASE Platform to unify connectivity, security and compliance, while a robotics and automation company with more than 100,000 employees implemented the platform to consolidate its networking and cybersecurity systems.
Cato also said a major service provider with nearly 10,000 employees expanded its use of the company’s technology across its customer base.
The deals reflect a broader shift among large companies seeking to consolidate networking and security services on a single platform, according to Cato.
The company also reported strong demand for Cato AI Security, which incorporates technology from its acquisition of Aim Security. The integrated product was launched in March 2026 and is designed to provide governance and protection for locally developed, managed and third-party AI agents.
During the quarter, Cato expanded the platform’s ability to monitor AI agents and enforce security policies on their inputs and outputs across major agentic platforms. It also added more detection and customization tools intended to help security teams align policies with business needs.
Cato said it also reduced the time required to protect customers against newly disclosed software vulnerabilities to 45 minutes through its Agentic CVE Mitigation technology.
The company described the achievement as a possible world record, though the claim has not been independently verified. Traditional vulnerability mitigation can take days or weeks as organizations move from disclosure to deployment of protective measures.
Cato said its system combines automated threat research with its cloud-native architecture to respond to emerging threats more quickly.
Additional developments during the quarter included Cato’s participation in the OpenAI Daybreak Cyber Partner Program, which is intended to integrate OpenAI cybersecurity capabilities into defensive systems.
The company also opened its first dedicated AI hub in London and announced integrations with cybersecurity companies Cyera and CrowdStrike.
Cato launched an enterprise browser designed to extend zero-trust access controls and introduced a modular adoption model that allows customers to begin with selected capabilities and add others over time.
Cato Networks develops secure access service edge, or SASE, technology that unifies networking, security and remote access on a cloud-based platform. Its services are used by companies operating across cloud, hybrid and on-premises environments.