Cato Networks crossed a scale threshold that will change how large buyers and incumbents treat the SASE category.
Cato announced it surpassed $350M in annual recurring revenue in 2025, driven by stronger enterprise adoption as AI changes network and security requirements. CEO Shlomo Kramer said the company has an aggressive plan to gain market share in 2026.
That milestone reflects 43% year-over-year growth and arrived only months after the company said it had exceeded $300M in ARR. ARR remains one of the clearest signals of repeatable enterprise buying and expansion.
Why $350M ARR matters in 2026
At this level, ARR stops being a startup headline and starts becoming a buyer confidence signal. It implies repeatable procurement, global rollout capability, and an operating model that can support platform consolidation decisions across networking and security.
AI is raising expectations for security platforms.
AI adoption increases the adoption of sensitive workflows across cloud, hybrid, and distributed environments. That pushes buyers toward platforms that unify connectivity, access, and security controls, with stronger automation and faster response.
Cato also moved to expand AI security capabilities through its acquisition of Aim Security, positioning the company to secure AI apps and agents as this surface expands across the enterprise.
Category tailwinds and the share fight
Cato’s framing aligns with a broader market expansion story. Gartner projects the SASE market to grow at a 26% CAGR over five years, reaching $28.5B by 2028. In markets compounding at that pace, leadership is won through migration capture, channel leverage, and rollout consistency.
What to watch next
- AI security integration depth across policy, visibility, and enforcement
- Channel expansion and partner economics that increase distribution speed
- Global performance consistency across regions where multinational buyers operate
- Funding optionality and IPO readiness as a trust and recruiting lever
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