Cato Networks has surpassed $415 million in annual recurring revenue, representing 42% year-over-year growth as large enterprises increase their adoption of the company’s cloud-native networking, cybersecurity and AI protection platform.
The company reported accelerating enterprise momentum during the second quarter of 2026, including several contracts valued at millions of dollars in annual recurring revenue. The new agreements span manufacturing, robotics, telecommunications and data analytics customers.
Annual recurring revenue, commonly known as ARR, measures the annualized value of recurring subscription contracts. It is an important growth indicator for software companies, although it is not the same as revenue recognized under accounting standards.
Cato now serves more than 4,800 customers through its cloud-native network security platform. The company said its growth reflects demand from Fortune 500 and Global 2000 organizations seeking to consolidate networking and security systems while strengthening their ability to manage AI-related risks.
Cato’s platform is based on Secure Access Service Edge, or SASE, an architecture that combines networking and security capabilities through a cloud-delivered service.
Large enterprises have traditionally assembled separate products for branch connectivity, firewalls, secure web access, remote access, threat prevention and other functions. Managing these systems independently can create operational complexity, fragmented visibility and inconsistent security policies.
The Cato SASE Platform brings networking, security and access controls together through a single global cloud service. This can help organizations establish consistent policies across offices, cloud environments, remote employees and other connected resources.
One of Cato’s second-quarter customers was a Fortune 500 company with nearly 50,000 employees. The organization deployed Cato AI Security to support rapid AI adoption without adding security personnel or reducing existing protections.
A technology manufacturer with more than 150,000 employees purchased the Cato SASE Platform to unify connectivity, security and compliance while supporting operational agility and resilience.
A robotics and automation company with more than 100,000 employees selected the platform to consolidate its networking and security infrastructure.
Cato also expanded its relationship with a service provider employing nearly 10,000 people. The provider plans to extend Cato’s technology across its customer base to improve network performance, security and visibility.
The customer activity reflects a broader trend toward platform consolidation. Enterprises are seeking to reduce the number of individual networking and security vendors they operate while gaining a more unified view of users, applications, devices and data.
Carrefour Senior Network Director Morgan Guyader said the retailer connected and secured 2,000 locations through Cato within one year. The project consolidated several networking and security providers onto one SASE platform while supporting Carrefour’s broader Zero Trust strategy.
Zero Trust is a security model based on continuously verifying users, devices and access requests rather than automatically trusting activity because it originates from inside a corporate network.
Cato also reported continued demand for Cato AI Security, which incorporates technology from its acquisition of Aim Security. The integrated product became commercially available in March 2026.
The platform provides governance and protection for different types of AI agents, including agents running locally, systems managed by external providers and internally developed applications.
Cato said its AI engine can inspect tool inputs and outputs across major agentic platforms and enforce policies governing how enterprise users and AI systems handle information.
The company has also introduced additional detection and customization capabilities, enabling security teams to define policies that reflect their specific business requirements.
Because Cato operates within the network traffic path, the platform can observe interactions between employees, applications and AI systems. This can include prompts submitted to AI models, generated responses and actions performed through connected tools.
That visibility can help organizations identify sensitive information being submitted to unauthorized AI services, enforce acceptable-use policies and monitor AI agents that interact with enterprise applications.
Cato customer MoonPay said this network position allows the platform to detect AI activity regardless of how the interaction is generated.
The company is also working to reduce the time required to protect customers against newly disclosed software vulnerabilities.
During the second quarter, Cato launched full Agentic CVE Mitigation and said it reduced its time-to-protect for a newly disclosed vulnerability to 45 minutes. Cato described the result as what it believes to be a world record.
A Common Vulnerabilities and Exposures identifier, or CVE, provides a standardized reference for a publicly disclosed software weakness.
Traditional vulnerability response can require security researchers to understand the issue, determine how attackers could exploit it, develop detection logic, test protections and distribute updates to customers. The process may take days or weeks.
Cato combines agentic threat research with its cloud-native architecture to accelerate this workflow. AI agents can assist with analyzing a vulnerability and developing protections, while Cato’s centralized cloud platform enables the company to distribute security updates without requiring every customer to manually update individual appliances.
The company believes this approach can help customers respond at machine speed as attackers use AI to identify and exploit vulnerabilities more rapidly.
Cato also joined the OpenAI Daybreak Cyber Partner Program during the quarter. The partnership is intended to help bring OpenAI’s cybersecurity capabilities into trusted defensive workflows supporting agentic security operations.
The company opened its first dedicated AI hub in London to support product development and its next stage of international growth.
Cato also announced integrations with Cyera and CrowdStrike. The Cyera relationship is designed to bring data context into security operations, while the CrowdStrike integration connects network and endpoint security information.
Endpoint systems provide visibility into devices such as laptops and servers, while network systems monitor communications moving among users, applications and infrastructure. Connecting these sources can give security teams a more complete understanding of an incident.
Cato also launched the Cato Enterprise Browser to extend its Universal Zero Trust Network Access capabilities.
Enterprise browsers can apply security and access policies directly within the browsing environment, helping organizations control how employees and contractors interact with business applications and sensitive information.
The company introduced a modular adoption model that allows customers to begin with selected capabilities and expand their use of the platform over time.
Cato said the structure provides customers with additional purchasing flexibility without requiring them to abandon the architectural benefits of a unified platform.
The company’s growth is being supported by enterprise demand for simpler security operations, stronger network resilience and governance capabilities designed for increased AI adoption.
KEY QUOTES:
“Surpassing $415 million in ARR validates what we are seeing across the market. Enterprises need security, resilience, and agility that legacy architectures were never built to deliver.”
“AI is increasing both the speed of business and complexity of risk. Cato’s continued growth reflects customers choosing a cloud-native platform for their AI-driven future.”
Shlomo Kramer, Co-Founder and CEO of Cato Networks
“Running one of the world’s largest retail networks means simplifying wherever possible. In just one year, we’ve connected and secured two thousand locations to a single modern SASE platform and consolidated multiple networking and security vendors onto Cato.”
“The result is a more streamlined operation, better visibility, and a scalable foundation for the next phase of our Zero Trust journey.”
Morgan Guyader, Senior Network Director at Carrefour
“Because Cato sits at the top of the network, it catches every AI interaction. Every prompt. Every response. No matter how it’s generated. That’s exactly where AI security needs to be.”
Doug Innocenti, CIO and CSO of MoonPay
