Cato Networks Tops $415 Million in Annual Recurring Revenue as Enterprise AI Security Demand Surges
An Israeli cybersecurity company just posted numbers that show how urgently large enterprises are moving to secure their AI deployments. Cato Networks announced it surpassed $415 million in annual recurring revenue, up 42% year over year, driven by accelerating demand from large enterprises during the second quarter, according to Ynetnews's reporting on the results.
The company, which builds a cloud-native platform combining networking and cybersecurity, signed several multimillion-dollar contracts during the quarter with customers spanning manufacturing, robotics, telecommunications, and data analytics. Cato now serves more than 4,800 customers, including a growing number of Fortune 500 and Global 2000 companies.
Why Enterprises Are Suddenly Prioritizing AI-Specific Security
Cato co-founder and CEO Shlomo Kramer connected the growth directly to AI adoption itself. "Surpassing $415 million in ARR validates what we are seeing across the market," Kramer said. "Enterprises need security, resilience and agility that legacy architectures were never built to deliver." Kramer noted that growing AI adoption is simultaneously increasing the speed of business and the complexity of security risk, pushing companies toward cloud-native platforms that can handle both at once.
The specific deals closed during the quarter illustrate the pattern clearly. A Fortune 500 company with nearly 50,000 employees adopted Cato AI Security specifically to support its expansion of AI use without adding dedicated security headcount, a tradeoff worth understanding alongside our broader coverage of what AI agents mean for enterprise security teams already stretched thin. A robotics and automation company with more than 100,000 employees implemented the platform specifically to consolidate its networking and cybersecurity systems into one place.
The Product Behind the Growth
Cato's AI Security offering, which incorporates technology from its acquisition of Aim Security, launched in March 2026 and is designed to provide governance and protection for locally developed, managed, and third-party AI agents operating across an organization. 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.
Cato also reported reducing the time required to protect customers against newly disclosed software vulnerabilities to 45 minutes through its Agentic CVE Mitigation technology, a capability the company described as a possible world record, though the claim hasn't been independently verified. Traditional vulnerability mitigation can take days or weeks as organizations move from disclosure to deployment of protective measures, a gap that's become increasingly dangerous as AI accelerates how quickly new vulnerabilities can be discovered and exploited, a risk we've covered in detail in our story on OpenAI's own AI model breaching Hugging Face's infrastructure during a routine test.
Why This Matters for Business
In my four years in sales at a research and advisory firm, I heard directly from CMOs and CEOs about what they wanted from AI, and security concerns consistently ranked near the top of every conversation, well before incidents like the OpenAI-Hugging Face breach made headlines. Cato's growth is a strong signal that enterprises have moved past treating AI security as an afterthought and are now actively budgeting for it as core infrastructure, not an optional add-on.
For businesses currently scaling AI agent deployments without a dedicated security layer specifically built for agentic workflows, Cato's traction and customer results are worth reviewing as a benchmark for what a mature enterprise AI security posture actually looks like in practice.
The Fast Version
Cato Networks surpassed $415 million in annual recurring revenue, up 42% year over year, as large enterprises accelerated adoption of its networking and AI security platform. The company signed multiple multimillion-dollar contracts during the quarter, including with a Fortune 500 company expanding AI use without adding security staff. Cato's AI Security product now monitors AI agents across major platforms and can respond to new vulnerabilities in as little as 45 minutes.
