Cato Networks tops $415m ARR amid Q2 momentum

The vendor landed several multimillion-dollar contracts during the quarter

Cato Networks has surpassed $415m (£312.5m) in annual recurring revenue (ARR), up 42 per cent year-on-year, following a series of enterprise contract wins.

The vendor said Q2 momentum was driven by rising demand from Fortune 500 and Global 2000 clients across manufacturing, robotics, telecoms and data analytics.

Cato now serves more than 4,800 customers, with several organisations signing seven-figure ARR contracts during the quarter.

These included a company with almost 50,000 employees, which deployed Cato AI Security to support its use of AI without increasing security headcount.

A tech manufacturer with more than 150,000 employees also adopted the Cato SASE Platform to consolidate connectivity, security and compliance while a robotics and automation business with more than 100,000 staff implemented the platform across its networking and security operations.

The vendor said demand was also rising for Cato AI Security, which incorporates technology gained through its buyout of Aim Security in September and was launched in March 2026.

During the quarter, Cato expanded the platform’s visibility and governance capabilities to cover local, managed and internally developed AI agents.

It also joined the OpenAI Daybreak Cyber Partner Program and opened its first dedicated AI hub in London.

“Surpassing $415m in ARR validates what we are seeing across the market. Enterprises need security, resilience, and agility that legacy architectures were never built to deliver,” said Shlomo Kramer, co-founder and CEO at Cato Networks.

“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.”

The announcement comes a few months after the vendor announced that it surpassed $350m in ARR for FY25, a 43 per cent year-on-year increase.

In a recent interview with CRN, Karl Soderlund, the organisation's global channel chief, said Cato works with about 1,000 partners worldwide, including around 300 across EMEA and roughly 75 in the UK.

The move also follows a revamp of the firm's regional leadership team, with Tristan Elder appointed VP of EMEA channel in May, replacing Mark Draper, who stepped down after three years in the role.