Tenable (NASDAQ:TENB) Announces Earnings Results, Beats Estimates By $0.04 EPS

Tenable (NASDAQ:TENB) released 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 positive return on equity of 7.85% and a negative net margin of 1.15%.The business had revenue of $268.51 million during the quarter, compared to analyst estimates of $264.87 million. During the same quarter in the prior year, the company posted $0.34 EPS. Tenable’s quarterly revenue was up 8.6% compared to the same quarter last year. 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 Down 2.9%

NASDAQ TENB traded down $0.90 during trading hours on Thursday, reaching $30.58. 2,215,589 shares of the company’s stock traded hands, compared to its average volume of 3,239,809. Tenable has a 52-week low of $15.73 and a 52-week high of $43.67. The firm has a market cap of $3.37 billion, a PE ratio of -306.68 and a beta of 0.93. The firm has a 50-day simple moving average of $31.81 and a 200 day simple moving average of $24.49. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.85 and a quick ratio of 0.85.

Wall Street Analysts Forecast Growth

TENB has been the subject of a number of recent analyst reports. DA Davidson upped their target price on Tenable from $22.00 to $25.00 and gave the company a “neutral” rating in a report on Friday, May 22nd. Scotiabank raised shares of Tenable from a “sector perform” rating to a “sector outperform” rating and set a $50.00 price objective on the stock in a research report on Monday, July 6th. TD Cowen lifted their target price on shares of Tenable from $38.00 to $44.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Wall Street Zen cut shares of Tenable from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, June 24th. Finally, Stephens increased their price target on shares of Tenable from $24.00 to $29.00 and gave the stock an “equal weight” rating in a research note on Tuesday, May 26th. Eight research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Tenable presently has an average rating of “Hold” and an average target price of $33.74.

Key Stories Impacting Tenable

Here are the key news stories impacting Tenable this week:

• Positive Sentiment: Q2 earnings and revenue beat estimates: Tenable reported adjusted earnings of $0.51 per share, versus the $0.47 consensus estimate, while revenue rose 8.6% year over year to $268.5 million, exceeding expectations of $264.9 million. EPS also increased from $0.34 in the prior-year quarter. Tenable Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and cash flow improved: The company posted a 24.7% non-GAAP operating margin, up 540 basis points year over year, and generated $44.7 million in operating cash flow and $45.3 million in unlevered free cash flow. Tenable Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Guidance exceeded EPS expectations: Tenable forecast third-quarter 2026 EPS of $0.49–$0.52, well above the $0.42 consensus, and raised or reaffirmed full-year EPS guidance of $1.95–$2.00 versus analyst expectations of $1.66. Revenue guidance was broadly in line with estimates.
• Positive Sentiment: Analyst upgraded its valuation outlook: Needham raised its price target from $30 to $36 and assigned a “Buy” rating, implying approximately 14.4% upside from the referenced price. Needham Raises Tenable Price Target
• Positive Sentiment: AI product launch adds a growth catalyst: Tenable introduced Always On Hexa AI, an autonomous exposure-remediation offering designed to identify and address security risks continuously. Tenable Launches Always On Hexa AI
• Negative Sentiment: Analyst caution remains: Wells Fargo maintained a “Hold” view, potentially limiting enthusiasm despite the earnings beat and Needham’s bullish revision. Wells Fargo Gives Tenable a Hold Rating

Hedge Funds Weigh In On Tenable

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Ameriprise Financial Inc. boosted its position in shares of Tenable by 11.0% in the 3rd quarter. Ameriprise Financial Inc. now owns 7,179,473 shares of the company’s stock worth $209,354,000 after purchasing an additional 713,291 shares in the last quarter. First Trust Advisors LP increased its position in Tenable by 31.8% during the fourth quarter. First Trust Advisors LP now owns 4,243,625 shares of the company’s stock valued at $99,852,000 after acquiring an additional 1,023,671 shares during the last quarter. Shapiro Capital Management LLC grew its position in Tenable by 38.8% during the third quarter. Shapiro Capital Management LLC now owns 3,612,353 shares of the company’s stock valued at $105,336,000 after buying an additional 1,010,230 shares during the period. State Street Corp raised its position in Tenable by 1.4% in the second quarter. State Street Corp now owns 3,056,055 shares of the company’s stock worth $103,234,000 after acquiring an additional 43,098 shares during the period. Finally, Morgan Stanley boosted its stake in shares of Tenable by 17.9% during the 4th quarter. Morgan Stanley now owns 2,728,338 shares of the company’s stock worth $64,198,000 after acquiring an additional 413,419 shares during the last quarter. Institutional investors own 89.06% of the company’s stock.

Tenable Company Profile

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.