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

Tenable (NASDAQ:TENB) posted its quarterly earnings data on Wednesday. The company reported $0.63 EPS for the quarter, beating analysts’ consensus estimates of $0.51 by $0.12, Briefing.com reports. Tenable had a net margin of 0.65% and a return on equity of 14.90%. During the same period last year, the company posted $0.42 EPS. The business’s revenue was up 9.5% on a year-over-year basis.

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 Trading Up 0.1%

Shares of NASDAQ:TENB traded up $0.07 during mid-day trading on Wednesday, hitting $48.72. The company had a trading volume of 5,004,158 shares, compared to its average volume of 3,550,711. The company has a debt-to-equity ratio of 1.78, a current ratio of 0.79 and a quick ratio of 0.79. Tenable has a one year low of $15.73 and a one year high of $50.21. The firm has a fifty day moving average price of $37.36 and a 200 day moving average price of $28.49. The company has a market capitalization of $5.37 billion, a PE ratio of 974.59 and a beta of 1.01.

Key Tenable News

Here are the key news stories impacting Tenable this week:

• Positive Sentiment: Raised full-year outlook supports the bull case. Tenable reported third-quarter revenue of $276.4 million, up 9.5% year over year, with a 27.1% non-GAAP operating margin, up 380 basis points. Operating cash flow reached $72.5 million and unlevered free cash flow was $69.4 million. The company also raised its full-year outlook. Tenable Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Analyst support and options activity added momentum. Cantor Fitzgerald maintained its Buy rating, while a Robert W. Baird analyst reportedly indicated that Tenable’s stock could rise. Unusually high call-option buying and a prior analyst upgrade may have further encouraged bullish positioning. Cantor Fitzgerald Rating Robert W. Baird Analyst Commentary
• Positive Sentiment: New Atos partnership expands enterprise reach. Atos selected Tenable to power its continuous threat exposure management service and named Tenable a preferred partner, potentially improving the company’s access to large corporate and government customers. Tenable Selected by Atos
• Neutral Sentiment: Valuation leaves little room for disappointment. Tenable’s shares have risen substantially over the past year and trade at a very elevated earnings multiple, making future guidance and execution particularly important for investors.
• Negative Sentiment: Reported EPS missed expectations. Tenable posted quarterly EPS of $0.18, below the $0.51 consensus estimate. The earnings shortfall could limit the positive reaction to otherwise strong revenue, margin, cash-flow and guidance metrics. Tenable Earnings Report

Analysts Set New Price Targets

Several equities analysts recently issued reports on TENB shares. JPMorgan Chase & Co. boosted their target price on shares of Tenable from $35.00 to $40.00 and gave the company an “overweight” rating in a report on Tuesday, June 30th. Barclays cut their price target on shares of Tenable from $41.00 to $38.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 30th. Wall Street Zen upgraded Tenable from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 17th. Scotiabank raised Tenable from a “sector perform” rating to a “sector outperform” rating and set a $50.00 price objective for the company in a research report on Monday, July 6th. Finally, Weiss Ratings raised Tenable from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, October 8th. Nine analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $36.40.

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.