Cato Networks passes $415 million ARR as SASE demand keeps growing

SASE provider Cato Networks reached $415 million in annual recurring revenue, up 42% year over year, with growth accelerating in the second quarter of 2026, CTech by Calcalist reported on July 27. The company said it signed several significant contracts with large enterprises in the quarter. Cato has about 1,800 employees, has raised about $1.1 billion, and was valued at nearly $5 billion in its last round. Chief strategy officer Eyal Webber-Zvik said the company is still planning an IPO, and CEO Shlomo Kramer denied reports of acquisition talks with CrowdStrike.

Cato's numbers are a signal of where network buying is heading. More organizations are replacing separate SD-WAN boxes, VPN concentrators and web security tools with a single cloud-delivered SASE service. Cato also launched an AI security offering in March 2026, built on its $350 million Aim Security acquisition, and says it has cut its time to protect against newly disclosed vulnerabilities to 45 minutes.

If you are planning an SD-WAN refresh or a VPN replacement, include at least one single-platform SASE provider in the evaluation alongside your incumbent firewall vendor. Ask each bidder for points of presence near your sites and users, how they handle internet breakout and backup circuits, contract length and true-up terms, and what happens to your service if the company is acquired. With privately held providers, ask about financial stability and data portability as part of due diligence.

Acquisition rumors are common in this market. Build exit and transition terms into any multi-year SASE contract.