Tenable (NASDAQ:TENB) Announces Earnings Results

Tenable (NASDAQ:TENB) announced its quarterly earnings results on Wednesday. The company reported $0.51 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.04, FiscalAI reports. Tenable had a negative net margin of 1.15% and a positive return on equity of 7.85%. The business had revenue of $268.51 million during the quarter, compared to analyst estimates of $264.87 million. Tenable updated its FY 2026 guidance to 1.950-2.000 EPS and its Q3 2026 guidance to 0.490-0.520 EPS.

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

• Second-quarter results exceeded guidance, with revenue of $268.5 million, up 8.6% year over year, and non-GAAP operating margin of 24.7%. Management raised full-year 2026 revenue, operating income, EPS, and free-cash-flow guidance.
• Tenable One accounted for a record 50% of new business, with Advanced adoption roughly twice that of Foundation. Larger platform deals, strong competitive displacements, and customer expansions lifted net dollar expansion to 106%, its first sequential increase since Q1 2022.
• The company reported strong early customer engagement with its AI offerings: more than 80% of Hexa users submit prompts, nearly half take action, and hundreds of Tenable One customers are using the product. Management said demand is being driven by concerns about accelerated AI-enabled vulnerability discovery and the need for automated, preemptive remediation.
• Tenable plans to increase sales capacity in the second half while maintaining profitability targets, and repurchased $100 million of stock in Q2, with $108 million remaining under its authorization. Despite improved momentum and pipeline, revenue growth guidance remains in the high-single-digit range, and management cautioned that new bookings convert to revenue gradually because contracts are recognized ratably.

Tenable Stock Performance

Shares of NASDAQ TENB traded up $0.11 during midday trading on Wednesday, reaching $31.48. The company’s stock had a trading volume of 3,959,999 shares, compared to its average volume of 3,251,784. The stock has a market capitalization of $3.47 billion, a P/E ratio of -314.80 and a beta of 0.93. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.85 and a quick ratio of 0.85. The firm has a 50 day moving average price of $31.69 and a 200-day moving average price of $24.43. Tenable has a 12-month low of $15.73 and a 12-month high of $43.67.

Tenable News Summary

Here are the key news stories impacting Tenable this week:

• Positive Sentiment: Raised earnings outlook: Tenable guided for third-quarter 2026 adjusted EPS of $0.49–$0.52, well above the $0.42 analyst consensus. Full-year 2026 EPS guidance of $1.95–$2.00 also exceeded the $1.66 consensus, providing a strong potential catalyst for the stock. Revenue guidance was broadly in line with expectations. Tenable guidance report
• Positive Sentiment: Quarterly earnings beat estimates: Second-quarter revenue increased 8.6% year over year to $268.5 million, exceeding expectations of $264.9 million. Adjusted EPS was $0.51 versus the $0.47 consensus estimate, while non-GAAP operating margin expanded 540 basis points to 24.7%. Operating cash flow was $44.7 million and unlevered free cash flow was $45.3 million, supporting the positive investor reaction. Tenable Announces Second Quarter 2026 Financial Results
• Positive Sentiment: AI product expansion: Tenable launched Always On Hexa AI, an autonomous exposure-remediation offering designed to continuously identify and address cybersecurity risks. The product could strengthen Tenable’s competitive position and support longer-term growth, although its near-term financial contribution remains uncertain. Tenable launches Always On Hexa AI
• Neutral Sentiment: Analyst stance remains cautious: Wells Fargo assigned Tenable a Hold rating, indicating limited conviction that the recent rally will continue despite the earnings beat and improved outlook. Tenable receives a Hold from Wells Fargo

Institutional Trading of Tenable

Hedge funds have recently bought and sold shares of the business. Quarry LP purchased a new position in Tenable in the third quarter worth $25,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Tenable during the 4th quarter valued at $28,000. Quadrant Capital Group LLC purchased a new stake in shares of Tenable during the 4th quarter valued at $38,000. Horizon Investments LLC bought a new stake in shares of Tenable during the 3rd quarter worth $45,000. Finally, Los Angeles Capital Management LLC bought a new stake in shares of Tenable during the 4th quarter worth $48,000. 89.06% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Wedbush restated an “outperform” rating and issued a $29.00 target price on shares of Tenable in a report on Tuesday, May 26th. Robert W. Baird set a $34.00 price objective on Tenable in a research note on Thursday, April 30th. Morgan Stanley set a $27.00 target price on Tenable in a research report on Thursday, April 30th. Truist Financial reiterated a “hold” rating and set a $40.00 price target (up from $27.00) on shares of Tenable in a report on Tuesday, July 21st. Finally, UBS Group lowered Tenable from a “buy” rating to a “neutral” rating and set a $37.00 price target for the company. in a research report on Friday, July 24th. Nine research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Tenable presently has an average rating of “Hold” and a consensus price target of $33.42.

About Tenable

Tenable Holdings, Inc is a global cybersecurity company specializing in vulnerability management and continuous threat exposure assessment. Headquartered in Columbia, Maryland, Tenable was founded in 2002 by Ron Gula and Jack Huffard to address the growing need for proactive network security solutions. Over the years, the company has evolved from a pioneer in open-source vulnerability scanning to a leading provider of comprehensive security platforms that help organizations identify, investigate and prioritize cyber risks across on-premises, cloud and operational technology environments.

At the core of Tenable’s product suite is Nessus, one of the industry’s most widely adopted vulnerability scanners.