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Why Is Tenable (TENB) Up 15.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Tenable (TENB - Free Report) . Shares have added about 15.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Tenable due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
TENB Q2 Earnings Beat on Tenable One Momentum, Outlook Raised
Tenable Holdings reported strong second-quarter 2026 results, with non-GAAP earnings of 51 cents per share, up 50% year over year. The figure beat the Zacks Consensus Estimate of 47 cents by 8.51%. Revenues rose 8.6% year over year to $268.5 million and surpassed the consensus mark of $265 million by 1.32%.
Results were driven by record adoption of the Tenable One platform, which represented 50% of new business during the quarter, up from 40% in the year-ago period.
TENB Benefits From Platform Adoption
Revenue growth was supported by strong expansion within existing accounts and continued strength in renewals. Professional services also contributed ahead of expectations. Recurring revenues remained high at 95% of total revenues compared with 96% in the year-ago period.
Tenable continued expanding its customer base, adding 381 new enterprise platform customers during the quarter, along with 32 net new six-figure customers. The net dollar expansion rate improved to 106% from 105% in the prior quarter, marking the first quarter-over-quarter increase in the metric since the first quarter of 2022.
Tenable Sees AI as a Long-Term Tailwind
The heightened AI-driven threat environment following the Mythos development is accelerating customer demand for exposure management platforms capable of prioritizing and remediating cyber risk at speed. Tenable Hexa AI, the company's agentic engine within Tenable One, saw strong early traction, with more than 80% of users submitting prompts and nearly half using it to take action rather than simply consume information.
The company also expanded its Tenable One AI Exposure offering to include coverage for Gemini alongside existing coverage for Claude, ChatGPT and Copilot. Tenable deepened its partnerships with Anthropic through Project Glasswing and with OpenAI through its Daybreak Cyber Partner Program during the quarter.
TENB Maintains Healthy Profitability
Non-GAAP gross margin was 81.4% compared with 82% in the year-ago period, within the company's typical historical range. Non-GAAP operating income increased 38.8% year over year to $66.2 million. The non-GAAP operating margin expanded 540 basis points to 24.7%.
GAAP income from operations was $12.4 million compared with a loss of $7.4 million in the year-ago quarter, while GAAP operating margin was 4.6% versus negative 3% a year earlier.
Tenable Generates Strong Cash Flow
The company ended the quarter with $298.2 million in cash and short-term investments, down from $360.3 million as of March 31, 2026, primarily reflecting share repurchase activity.
Long-term debt was $353 million, down slightly on a sequential basis from $353.6 million as of March 31, 2026. Unlevered free cash flow was $45.3 million, or 16.9% of revenues compared with $44.3 million in the year-ago quarter. During the quarter, Tenable repurchased 5.2 million shares for $100 million and had $108 million remaining under its existing authorization.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Tenable has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Tenable has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tenable is part of the Zacks Internet - Software industry. Over the past month, F5 Networks (FFIV - Free Report) , a stock from the same industry, has gained 5.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
F5 reported revenues of $865.08 million in the last reported quarter, representing a year-over-year change of +10.9%. EPS of $4.73 for the same period compares with $4.16 a year ago.
For the current quarter, F5 is expected to post earnings of $4.24 per share, indicating a change of -3.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for F5. Also, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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Why Is Tenable (TENB) Up 15.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Tenable (TENB - Free Report) . Shares have added about 15.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Tenable due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
TENB Q2 Earnings Beat on Tenable One Momentum, Outlook Raised
Tenable Holdings reported strong second-quarter 2026 results, with non-GAAP earnings of 51 cents per share, up 50% year over year. The figure beat the Zacks Consensus Estimate of 47 cents by 8.51%. Revenues rose 8.6% year over year to $268.5 million and surpassed the consensus mark of $265 million by 1.32%.
Results were driven by record adoption of the Tenable One platform, which represented 50% of new business during the quarter, up from 40% in the year-ago period.
TENB Benefits From Platform Adoption
Revenue growth was supported by strong expansion within existing accounts and continued strength in renewals. Professional services also contributed ahead of expectations. Recurring revenues remained high at 95% of total revenues compared with 96% in the year-ago period.
Tenable continued expanding its customer base, adding 381 new enterprise platform customers during the quarter, along with 32 net new six-figure customers. The net dollar expansion rate improved to 106% from 105% in the prior quarter, marking the first quarter-over-quarter increase in the metric since the first quarter of 2022.
Tenable Sees AI as a Long-Term Tailwind
The heightened AI-driven threat environment following the Mythos development is accelerating customer demand for exposure management platforms capable of prioritizing and remediating cyber risk at speed. Tenable Hexa AI, the company's agentic engine within Tenable One, saw strong early traction, with more than 80% of users submitting prompts and nearly half using it to take action rather than simply consume information.
The company also expanded its Tenable One AI Exposure offering to include coverage for Gemini alongside existing coverage for Claude, ChatGPT and Copilot. Tenable deepened its partnerships with Anthropic through Project Glasswing and with OpenAI through its Daybreak Cyber Partner Program during the quarter.
TENB Maintains Healthy Profitability
Non-GAAP gross margin was 81.4% compared with 82% in the year-ago period, within the company's typical historical range. Non-GAAP operating income increased 38.8% year over year to $66.2 million. The non-GAAP operating margin expanded 540 basis points to 24.7%.
GAAP income from operations was $12.4 million compared with a loss of $7.4 million in the year-ago quarter, while GAAP operating margin was 4.6% versus negative 3% a year earlier.
Tenable Generates Strong Cash Flow
The company ended the quarter with $298.2 million in cash and short-term investments, down from $360.3 million as of March 31, 2026, primarily reflecting share repurchase activity.
Long-term debt was $353 million, down slightly on a sequential basis from $353.6 million as of March 31, 2026. Unlevered free cash flow was $45.3 million, or 16.9% of revenues compared with $44.3 million in the year-ago quarter. During the quarter, Tenable repurchased 5.2 million shares for $100 million and had $108 million remaining under its existing authorization.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Tenable has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Tenable has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tenable is part of the Zacks Internet - Software industry. Over the past month, F5 Networks (FFIV - Free Report) , a stock from the same industry, has gained 5.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
F5 reported revenues of $865.08 million in the last reported quarter, representing a year-over-year change of +10.9%. EPS of $4.73 for the same period compares with $4.16 a year ago.
For the current quarter, F5 is expected to post earnings of $4.24 per share, indicating a change of -3.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for F5. Also, the stock has a VGM Score of D.