Tenable (NASDAQ:TENB) Posts Earnings Results, Misses Expectations By $0.33 EPS

Tenable (NASDAQ:TENB) released its earnings results on Wednesday. The company reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.33), Zacks reports. Tenable had a return on equity of 14.90% and a net margin of 0.65%.

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

TENB traded up $0.07 on Wednesday, hitting $48.72. The company’s stock had a trading volume of 5,004,158 shares, compared to its average volume of 3,550,711. Tenable has a 12 month low of $15.73 and a 12 month high of $50.21. The firm has a market cap of $5.37 billion, a P/E ratio of 974.59 and a beta of 1.01. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.78. The company’s 50 day simple moving average is $37.11 and its 200-day simple moving average is $28.37.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Needham & Company LLC increased their price target on shares of Tenable from $30.00 to $36.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Robert W. Baird lifted their price objective on shares of Tenable from $41.00 to $50.00 and gave the stock an “outperform” rating in a research report on Monday. Canaccord Genuity Group boosted their target price on shares of Tenable from $30.00 to $36.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Barclays reduced their target price on shares of Tenable from $41.00 to $38.00 and set an “equal weight” rating for the company in a research report on Thursday, July 30th. Finally, Scotiabank raised shares of Tenable from a “sector perform” rating to a “sector outperform” rating and set a $50.00 target price for the company in a research report on Monday, July 6th. Nine equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Tenable has a consensus rating of “Hold” and a consensus price target of $36.40.

Key Stories Impacting Tenable

Here are the key news stories impacting Tenable this week:

• Positive Sentiment: Strong Q3 results and raised outlook: Tenable reported third-quarter revenue of $276.4 million, up 9.5% year over year, along with a 6.0% GAAP operating margin and a 27.1% non-GAAP operating margin. Operating cash flow was $72.5 million and unlevered free cash flow was $69.4 million. Management also raised its full-year revenue outlook, supporting the bullish case for the company’s profitability and cash generation. Tenable Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Analyst support is strengthening: Cantor Fitzgerald maintained its Buy rating, while a Robert W. Baird analyst indicated that Tenable’s stock price could rise. An earlier analyst upgrade was also associated with a sharp move higher, reinforcing positive sentiment. Cantor Fitzgerald Rating Tenable Analyst Upgrade
• Positive Sentiment: New enterprise opportunity: Atos selected Tenable to power its continuous threat exposure management service. The agreement expands Tenable’s channel and enterprise reach and validates demand for its cybersecurity platform. Tenable Selected by Atos
• Neutral Sentiment: Trading activity signals elevated interest: Unusually high call-option buying suggests bullish positioning, but options activity can increase volatility and does not guarantee sustained gains. Tenable Call Option Activity
• Negative Sentiment: Conflicting EPS data creates a risk: One earnings feed reported adjusted EPS of $0.18, below the $0.51 consensus estimate. Although the company’s official release emphasized revenue, margins and cash flow strength, investors may remain cautious if the EPS shortfall is confirmed. Tenable Earnings Release

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.