Key Highlights

  • Consensus EPS of 0.51 matches second-quarter non-GAAP EPS of 0.51, compared with GAAP diluted EPS of 0.03.
  • Consensus revenue of USD 271.58 million sits within third-quarter revenue guidance of USD 270 million to USD 273 million.
  • Raised 2026 guidance is revenue of USD 1,075 million to USD 1,081 million and non-GAAP EPS of 1.95 to 2.00.
  • Net dollar expansion rate rose to 106%, and Tenable One made up 50% of new business.

Tenable (NASDAQ:TENB) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.51 on revenue of USD 271.58 million, and the company has a market capitalization of USD 5.31 billion.

Tenable provides exposure management and vulnerability management software, including its Tenable One platform. Second-quarter revenue was USD 268,508 thousand against USD 247,295 thousand, and net income was USD 3,805 thousand against a net loss of USD 14,706 thousand.

Estimates Against Third-Quarter Guidance

Management guided third-quarter revenue of USD 270 million to USD 273 million, and the revenue estimate of USD 271.58 million sits inside that range. The EPS estimate of 0.51 equals second-quarter non-GAAP EPS of 0.51, which compared with 0.34, and the estimates table does not state its EPS basis.

Second-quarter GAAP diluted EPS was 0.03 against negative 0.12. Revenue grew 8.6%, with subscription revenue of USD 248.3 million and professional services revenue of USD 10.4 million.

What Management Guided and What It Left Open

Management raised 2026 revenue guidance to USD 1,075 million to USD 1,081 million and non-GAAP EPS guidance to 1.95 to 2.00. It also lifted its calculated current billings outlook for the second half by USD 8 million to USD 10 million.

Management left open the pace of expansion, noting the net dollar expansion rate improved to 106%, its first acceleration since 2022. Management cited the effect of Frontier AI models and faster vulnerability discovery on the threat landscape.

Customer Growth and Margin Detail

The company added 381 new enterprise customers and 32 net new six-figure accounts, and net new seven-figure customers more than doubled the typical count. Tenable One made up 50% of new business.

Non-GAAP operating income was USD 66.2 million, up 38.8%, and non-GAAP gross margin was 81.4%. GAAP operating income was USD 12,368 thousand against a loss of USD 7,448 thousand, and gross profit was USD 208,175 thousand. Net income was USD 3,805 thousand against a net loss of USD 14,706 thousand, and basic EPS was 0.03 against negative 0.12. Operating expenses were USD 195,807 thousand against USD 200,309 thousand, and cost of revenue was USD 60,333 thousand against USD 54,434 thousand.

Buybacks, Cash Flow and Balance Sheet

The company repurchased 5.2 million shares for USD 100 million in the quarter and 11.4 million shares for about USD 230 million year to date at an average of 20.23. Unlevered free cash flow was USD 45.3 million.

Remaining performance obligations were USD 1.03 billion, up 15.4%. Cash and short-term investments were USD 298.2 million, with recurring revenue at 95%. The estimates table lists a market capitalization of USD 5.31 billion.

Comparisons to Make in the Report

Reported EPS against 0.51 and revenue against USD 271.58 million are the headline comparisons. Other markers are the net dollar expansion rate, Tenable One adoption and the raised guidance ranges.