Tenable (NASDAQ:TENB) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Tenable (NASDAQ:TENB) issued its earnings results on Wednesday. The company reported $0.63 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.12, Briefing.com reports. The company had revenue of $276.39 million for the quarter, compared to the consensus estimate of $271.58 million. Tenable had a net margin of 1.48% and a return on equity of 20.80%. Tenable’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.42 earnings per share.

Here are the key takeaways from Tenable’s conference call:

• Q3 results exceeded guidance, with revenue up 9.5% year over year to $276.4 million, non-GAAP operating margin improving to 27.1%, and free cash flow rising 18.7% to $69.4 million.
• Tenable One adoption accelerated, representing a record 59% of new business and surpassing 5,000 customers; net dollar expansion increased to 107%, while new six-figure account value grew 18% year over year.
• Management reported strong demand for AI-driven exposure management, citing Hexa AI usage growth, faster remediation, competitive wins against endpoint vendors, and increased customer conversions from standalone vulnerability management to Tenable One.
• Tenable raised its full-year 2026 revenue outlook to $1.084 billion–$1.087 billion and non-GAAP EPS outlook to $2.16–$2.19, while refinancing debt, extending maturities to 2031, and repurchasing 18.2 million shares year to date.
• Management expects net dollar expansion to hold around 107% in Q4, while noting that the third-quarter EPS benefit included a one-time $3.3 million tax benefit; the longer-term impact of the PHP2Shell vulnerability remains too early to quantify.

Tenable Stock Performance

NASDAQ TENB opened at $52.12 on Friday. Tenable has a 1-year low of $15.73 and a 1-year high of $52.54. The company has a market capitalization of $5.74 billion, a P/E ratio of 400.35 and a beta of 1.01. The business has a 50 day moving average price of $37.69 and a 200 day moving average price of $28.64. The company has a debt-to-equity ratio of 1.78, a current ratio of 0.79 and a quick ratio of 0.79.

Analysts Set New Price Targets

Several analysts have recently issued reports on TENB shares. Cantor Fitzgerald increased their price objective on Tenable from $45.00 to $53.00 and gave the company an “overweight” rating in a research note on Thursday. Wedbush upped their price target on Tenable from $29.00 to $35.00 and gave the stock an “underperform” rating in a report on Thursday. Stifel Nicolaus lifted their price target on shares of Tenable from $31.00 to $48.00 and gave the stock a “hold” rating in a research note on Thursday. Susquehanna lifted their price target on Tenable from $36.00 to $55.00 and gave the stock a “positive” rating in a report on Thursday. Finally, JPMorgan Chase & Co. upped their price target on Tenable from $40.00 to $41.00 and gave the company an “overweight” rating in a report on Thursday. Ten research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Tenable has a consensus rating of “Hold” and a consensus target price of $45.90.

Tenable News Roundup

Here are the key news stories impacting Tenable this week:

• Positive Sentiment: Raised earnings guidance: Tenable now expects fourth-quarter adjusted EPS of $0.56–$0.58, well above the $0.42 consensus estimate. Full-year 2026 EPS guidance was raised to $2.16–$2.19 versus the $1.69 analyst consensus. Fourth-quarter revenue guidance of $277 million–$280 million is also slightly above expectations. Tenable Raises Earnings Guidance
• Positive Sentiment: Q3 results exceeded estimates: The cybersecurity company reported EPS of $0.63 versus the $0.51 consensus and revenue of $276.4 million versus expectations of $271.6 million. Revenue increased 9.5% year over year, while non-GAAP operating margin expanded to 27.1%, up 380 basis points. Operating cash flow was $72.5 million and unlevered free cash flow was $69.4 million. Tenable Q3 2026 Results
• Positive Sentiment: Several analysts raised targets: Needham and Susquehanna moved their targets to $55 with buy or positive ratings, while Canaccord raised its target to $54 and maintained a buy rating. These revisions reinforce optimism around earnings momentum and demand for Tenable’s exposure-management products.
• Neutral Sentiment: Mixed Wall Street views: JPMorgan raised its target to $41 with an overweight rating, while Stephens set a $48 equal-weight target and Truist raised its target to $45 but kept a hold rating. The targets generally remain below or only modestly above the recent share price, suggesting limited near-term upside for some analysts.
• Negative Sentiment: Competitive and valuation concerns remain: Wedbush warned that cybersecurity-vendor consolidation and product bundling could pressure Tenable’s standalone positioning. Other commentary highlights that the shares have already rallied sharply, increasing the risk that the improved outlook is partly reflected in the valuation. Wedbush Consolidation Risk Report

About Tenable

Tenable is a cybersecurity company that helps organizations identify, assess and reduce cyber risk across their technology environments. Its exposure management platform is designed to provide visibility into vulnerabilities and other security exposures affecting cloud systems, applications, endpoints, networks, operational technology, Internet of Things devices and identities.

The company’s product portfolio includes Nessus, a widely used vulnerability assessment solution, and Tenable One, an exposure management platform that brings together vulnerability management, cloud security, identity exposure and related capabilities.