Tenable (NASDAQ:TENB) Announces Earnings Results, Misses Estimates By $0.33 EPS

Key Points

• Tenable missed EPS estimates: The company reported $0.18 per share versus the $0.51 consensus estimate, a shortfall of $0.33.
• Core operating results were strong: Third-quarter revenue rose 9.5% year over year to $276.4 million, while non-GAAP operating margin reached 27.1% and free cash flow increased 18.7% to $69.4 million.
• Management raised its 2026 outlook: Tenable now expects full-year revenue of $1.084 billion–$1.087 billion and non-GAAP EPS of $2.16–$2.19, supported by accelerating Tenable One adoption and demand for AI-driven exposure management.

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

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 Up 0.1%

NASDAQ:TENB traded up $0.07 on Wednesday, hitting $48.72. The stock 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 quick ratio of 0.79 and a current ratio of 0.79. The stock has a market cap of $5.37 billion, a P/E ratio of 974.59 and a beta of 1.01. Tenable has a 1 year low of $15.73 and a 1 year high of $50.21. The firm's fifty day simple moving average is $37.11 and its two-hundred day simple moving average is $28.37.

Key Headlines 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

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Jefferies Financial Group decreased their target price on Tenable from $35.00 to $30.00 and set a "hold" rating for the company in a research note 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. Canaccord Genuity Group upped their target price on Tenable from $30.00 to $36.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Barclays lowered their target price on Tenable from $41.00 to $38.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 30th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $45.00 target price on shares of Tenable in a report on Monday. Nine research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $36.40.

Tenable Company Profile

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.

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