Claroty
Claroty secures industrial control systems and connected devices in factories, hospitals, and grids.
On the record
Checkpoint: ServiceNow closes its Armis acquisition and Mitsubishi closes its Nozomi deal, both expected to reshape competitive bakeoffs
The call
Claroty leads a niche that just got three deep-pocketed parents (ServiceNow, Mitsubishi, Accenture) and one very large uninvited guest, Microsoft.
Claroty builds software that finds and protects industrial machines and factories from cyberattacks. It is hard to replace right now because it has spent over ten years learning how these machines talk to each other, and it works closely with hardware makers like Rockwell and Siemens who have agreed to help it. The big risk is that Microsoft, Palo Alto Networks, and ServiceNow are all building their own versions and can offer them free or bundled with other software that companies already buy. If these larger companies start winning deals at big corporations by bundling their industrial security into existing packages, Claroty could lose customers even if its product stays good.
Why
01
AI pressure: None apparent. AI is an ingredient here, not a substitute. Claroty built its own CPS model (Claire) to parse industrial protocols, not something a chatbot can replicate. Could AI do the core job? Unlikely.
02
Bigger players: Microsoft Defender for IoT, plus Palo Alto Networks bundling. Microsoft is already a Gartner MQ Leader in this category and can bundle OT coverage into deals Claroty has to win alone. Could a giant copy it? Probably.
03
What protects it. A decade of proprietary industrial protocol data plus co-engineering deals with Rockwell, Schneider, and Siemens, and government ATOs for classified sites.
What would change this call
Microsoft Defender for IoT wins named Fortune 500 OT accounts away from Claroty. Shows hyperscaler bundling is displacing Claroty's independent platform.
Rockwell, Schneider, or Siemens announces a competing OT security partnership. Would show an OEM co-engineering partner hedging away from Claroty.
Claroty files for or delays an IPO beyond 2027, or ARR growth reported below 30%. Would show growth deceleration undercutting its funding and independence.
Rockwell, Schneider, or Siemens announces a competing OT security partnership. Would show an OEM co-engineering partner hedging away from Claroty.
Claroty files for or delays an IPO beyond 2027, or ARR growth reported below 30%. Would show growth deceleration undercutting its funding and independence.
Key numbers
- $150M Series F at ~$3B valuation
- 300%+ ARR growth over three years
- Works with 24 of the Fortune 100
Named risks
- Rapid sector consolidation (ServiceNow-Armis, Mitsubishi-Nozomi, Accenture-Dragos) hands rivals parent distribution muscle.
- Microsoft Defender for IoT bundling with Azure/M365 could pressure Claroty's Fortune 100 accounts.
- No disclosed profitability; CEO's 2027 IPO target is explicitly contingent and could slip.
- OEM investor-partners (Rockwell, Schneider, Siemens) could hedge by backing competing platforms.
- Conflicting third-party headcount and revenue estimates suggest limited financial transparency.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Microsoft Defender for IoT | gaining on | Named co-Leader alongside Claroty in Gartner CPS Protection MQ, 2025-02-18 and 2026 edition |
| ServiceNow (via Armis acquisition) | gaining on | Acquisition of Armis pending regulatory close in 2H 2026, adding parent distribution muscle |
| Mitsubishi Electric (via Nozomi Networks) | gaining on | Agreed ~$1B acquisition of Nozomi Networks, September 2025 |
| Accenture (via Dragos) | gaining on | Moved to take majority stake in Dragos, reported by 2026-06-24 |
| Palo Alto Networks | contesting | Extending Zero Trust platform into OT visibility per 2026-06-24 buyer's guide |
Questions people ask
- Is Claroty profitable in 2026?
- Claroty has not disclosed profitability. CEO Yaniv Vardi said on 2026-01-26 that an IPO could happen as soon as 2027, but only if ARR, profitability and platform differentiation targets are met, implying profitability was not yet confirmed at that time.
- Who are Claroty's biggest competitors?
- As of a 2026-06-24 buyer's guide, Claroty's closest rivals are Dragos, Nozomi Networks, Armis, Tenable OT Security, Forescout and Microsoft Defender for IoT, with Palo Alto Networks extending in from its Zero Trust platform.
- Could AI replace Claroty?
- Unlikely. Claroty's moat is a decade-plus proprietary CPS data lake, OEM co-engineering with Rockwell and Schneider, and government Authority to Operate certifications for classified sites, per its May 2026 releases. It also builds its own AI agent, Claire, launched 2026-05-28, rather than being displaced by one.
- Is Claroty going public soon?
- CEO Yaniv Vardi said on 2026-01-26 an IPO could occur as soon as 2027, but only if ARR growth, profitability, and platform differentiation metrics are met, so no confirmed IPO date exists yet.
- Who owns Claroty?
- Claroty is privately held and venture backed. Its Series F of $150M closed 2026-01-22 led by Golub Growth, with prior backers including SoftBank, Bessemer Venture Partners, Schneider Electric, Siemens and Rockwell Automation; Calcalist reported a roughly $3B valuation.
- What is Claroty's valuation?
- Israeli outlet Calcalist reported Claroty's valuation at roughly $3B following its $150M Series F round that closed on 2026-01-22, described as an approximately 80% step-up from its prior funding round.
Timeline
- 2026-07-09Partnered with Frenos for AI-native OT penetration testing and exposure validation
- 2026-05-28Launched Claroty Claire, billed as industry's first CPS-native AI security agent
- 2026-05-21Partnered with Corsha; disclosed ATO for classified IC facility and missile-defense site deployments
- 2026-01-22Closed $150M Series F led by Golub Growth at a reported ~$3B valuation
- 2025-11-18Launched AI-powered CPS Library built with OEM partners Rockwell Automation and Schneider Electric
- 2025-02-18Named a Leader in inaugural Gartner Magic Quadrant for CPS Protection Platforms
- 2024-03-06Secured $100M strategic growth financing; disclosed ARR surpassed $100M in 2023
- 2021-12-08Raised $400M Series E and acquired Medigate for healthcare IoT security
Revision history
21 July 2026
First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Claroty Secures $100 Million in Strategic Growth Financing (2024-03-06)
- Claroty Named a Leader in 2025 Gartner Magic Quadrant for CPS Protection Platforms (2025-02-18)
- Claroty Secures $150 Million in Series F Funding (2026-01-22)
- Claroty - Overview, News & Similar companies (2026-07-14)
- Claroty raises $150 million at a $3 billion valuation (2026-01-22)
- Claroty Gets $150M to Lead in AI for Infrastructure Security (2026-01-26)
- Claroty and Corsha Partner to Bring Holistic Cyber-Physical Systems Protection to Federal Operational Environm (2026-05-21)
- Claroty Stock Price, Funding, Valuation, Revenue & Financial Statements (2026-01-21)
- Buyer's Guide: OT & ICS Security Platforms (2026-06-24)
- 7 Top OT Security Vendors for 2026 (2026-02-18)
- Claroty Releases New AI-Powered CPS Library Setting Revolutionary New Standards for Asset Visibility and Vulne (2025-11-18)
- Claroty Introduces Claire, Industry's First CPS-Native AI Security Agent (2026-05-28)