Is Nozomi Networks profitable?

Nozomi Networks reported net revenue of $101.7M in FY2025, up from $74.7M in FY2024, and achieved sustained cash-flow break-even, per Mitsubishi Electric's regulatory filing dated January 28, 2026, making it the first privately held OT cybersecurity firm to do so.

Who owns Nozomi Networks now?

As of January 28, 2026, Nozomi Networks became a wholly owned subsidiary of Mitsubishi Electric Corporation, which paid $883 million in cash for the remaining 93% stake it did not already own, in a deal valued near $1 billion overall.

Could AI replace Nozomi Networks?

Unlikely soon. Nozomi's moat is proprietary telemetry from 11,000+ real deployments and 102M+ monitored devices since 2013, plus physical sensors inside critical infrastructure. It has instead absorbed AI into its own product, launching Vantage IQ in January 2026 and joining Anthropic's Project Glasswing in July 2026.

Who is Nozomi Networks' biggest competitor?

Microsoft Defender for IoT is the most notable threat, already shipped and named a co-Leader alongside Nozomi, Claroty, Dragos, and Armis in Gartner's 2026 Magic Quadrant for CPS Protection Platforms, published May 18, 2026. Palo Alto Networks and Cisco are also extending IT stacks into OT.

What is Nozomi Networks' revenue?

Per Mitsubishi Electric's regulatory disclosure tied to the January 28, 2026 acquisition close, Nozomi's net revenue was $62.56M in FY2023, $74.7M in FY2024, and $101.7M in FY2025, reflecting roughly 33% CAGR and gross margins above 70%.

Why did Mitsubishi Electric buy Nozomi Networks?

Mitsubishi Electric first took a 7% stake in Nozomi via a $100M Series E round closed in March 2024, then agreed on September 9, 2025 to buy the remaining 93% for $883M, completing the roughly $1 billion deal, its largest acquisition to date, on January 28, 2026.

Cybersecurity companies · subsidiary of Mitsubishi Electric Corporation · Italy

Nozomi Networks

nozominetworks.com ↗

OT/ICS security vendor protecting industrial networks, now a Mitsubishi Electric subsidiary.

Defensible for now

Assessed 21 July 2026 · Evidence as of 21 July 2026

Real protection, with named pressure against it.

On the recordSince 21 July 2026 · Checkable from 2027 · Every call on the record Checkpoint: Next Gartner Magic Quadrant for CPS Protection Platforms refresh

The call

Nozomi sits inside critical infrastructure with data no AI model can copy, but Microsoft is now ranked alongside it and Mitsubishi ownership raises fresh vendor-neutrality questions.

Nozomi Networks sells software that watches and protects factories, power plants, and other industrial machines from cyberattacks. It's hard to copy because the company has spent years collecting real data from over 11,000 customer sites and learning how thousands of industrial machines actually talk to each other, plus it has physical sensors installed inside critical infrastructure that most rivals cannot access. The big risk is that Microsoft has already shipped its own competing product and is pushing it hard, and now that Mitsubishi Electric owns Nozomi, customers might worry that the software favors Mitsubishi's own factory equipment over competitors like Siemens or Rockwell, which could drive them to switch to other security companies like Claroty or Dragos instead.

Why

AI pressure: Generic foundation models (OpenAI, Anthropic base models). No outside model can see inside a plant's sensors; Nozomi instead bakes AI into Vantage IQ using its own customer telemetry. Could AI do the core job? Unlikely.

Bigger players: Microsoft Defender for IoT. Already shipped and co-listed as a Leader alongside Nozomi in Gartner's 2025/2026 CPS Protection rankings, but not yet pulling share from Nozomi's top accounts. Could a giant copy it? Probably.

What protects it. Physical sensors inside 11,000+ plants plus 13 years of proprietary ICS-protocol telemetry that regulators and operators trust for liability reasons.

What would change this call

Reports of Siemens or Rockwell-aligned customers dropping Nozomi post-Mitsubishi acquisition. Would show the vendor-neutrality moat eroding under Mitsubishi ownership.
Next Gartner CPS Protection Magic Quadrant repositions Microsoft, Claroty, or Dragos above Nozomi. Would indicate rivals are gaining ground in analyst-recognized market standing.
Nozomi's claimed top-10 penetration in oil & gas, pharma, utilities, or mining verticals declines in future disclosures. Would show incumbents or peers are winning share in Nozomi's core accounts.

Key numbers

FY2025 revenue $101.7M, up from $74.7M FY2024 (2026-01-28)
11,000+ deployments monitoring 102M+ devices (2026-03-02)
Mitsubishi paid $883M for 93% stake, ~$1B deal (2026-01-28)

Named risks

Vendor-neutrality erosion under Mitsubishi ownership could trigger churn in Siemens or Rockwell accounts. Severity: high
Microsoft Defender for IoT already shipped and co-listed as Gartner Leader, narrowing differentiation. Severity: medium
Post-acquisition integration execution risk under new parent Mitsubishi Electric. Severity: medium
Company-claimed 100% retention and top-10 penetration metrics unverified by third parties. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Microsoft Defender for IoT	contesting	Co-Leader with Nozomi in Gartner CPS Protection Magic Quadrant, published 2026-05-18
Claroty	contesting	Named Leader alongside Nozomi in Gartner's inaugural Feb 2025 and 2026 CPS Protection MQ
Dragos	contesting	Co-Leader with Nozomi in same Gartner CPS Protection MQ, 2026-05-18
Palo Alto Networks	gaining on	Extending IT security stack into OT, cited as encroaching competitor per 2026-05-18 industry guide
Siemens/Rockwell aligned vendors	contesting	Vendor-neutrality question raised post Mitsubishi acquisition close, 2026-01-14

Questions people ask

Is Nozomi Networks profitable?: Nozomi Networks reported net revenue of $101.7M in FY2025, up from $74.7M in FY2024, and achieved sustained cash-flow break-even, per Mitsubishi Electric's regulatory filing dated January 28, 2026, making it the first privately held OT cybersecurity firm to do so.
Who owns Nozomi Networks now?: As of January 28, 2026, Nozomi Networks became a wholly owned subsidiary of Mitsubishi Electric Corporation, which paid $883 million in cash for the remaining 93% stake it did not already own, in a deal valued near $1 billion overall.
Could AI replace Nozomi Networks?: Unlikely soon. Nozomi's moat is proprietary telemetry from 11,000+ real deployments and 102M+ monitored devices since 2013, plus physical sensors inside critical infrastructure. It has instead absorbed AI into its own product, launching Vantage IQ in January 2026 and joining Anthropic's Project Glasswing in July 2026.
Who is Nozomi Networks' biggest competitor?: Microsoft Defender for IoT is the most notable threat, already shipped and named a co-Leader alongside Nozomi, Claroty, Dragos, and Armis in Gartner's 2026 Magic Quadrant for CPS Protection Platforms, published May 18, 2026. Palo Alto Networks and Cisco are also extending IT stacks into OT.
What is Nozomi Networks' revenue?: Per Mitsubishi Electric's regulatory disclosure tied to the January 28, 2026 acquisition close, Nozomi's net revenue was $62.56M in FY2023, $74.7M in FY2024, and $101.7M in FY2025, reflecting roughly 33% CAGR and gross margins above 70%.
Why did Mitsubishi Electric buy Nozomi Networks?: Mitsubishi Electric first took a 7% stake in Nozomi via a $100M Series E round closed in March 2024, then agreed on September 9, 2025 to buy the remaining 93% for $883M, completing the roughly $1 billion deal, its largest acquisition to date, on January 28, 2026.

Timeline

2026-07-19Nozomi joins Anthropic's Project Glasswing to apply AI models to OT vulnerability discovery
2026-04-29Q2 2026 update adds Vantage IQ Personas, AI integration builder, Guardian Air updates
2026-01-28Mitsubishi Electric completes full acquisition of Nozomi Networks for $883M
2026-01-15Nozomi launches Vantage IQ, a private company-trained AI assistant for OT security
2026-01-14Nozomi opens new APAC/Japan regional headquarters in Singapore
2025-09-09Mitsubishi Electric announces agreement to acquire remaining 93% of Nozomi for $883M
2024-03Mitsubishi Electric acquires 7% stake via Nozomi's $100M Series E round
2013Nozomi Networks founded by Andrea Carcano and Moreno Carullo

Revision history

21 July 2026

First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.

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