Tenable Raises Full-Year Outlook After Beating Every Q3 Target

Tenable raised its full-year outlook on Wednesday after third-quarter results beat every metric the cybersecurity company had guided to, with non-GAAP earnings per share jumping to $0.63 from $0.42 a year earlier.

Revenue rose 9.5% to $276.4 million, according to the earnings release Tenable filed with an 8-K on Wednesday. The exposure management company now expects 2026 revenue of $1.084 billion to $1.087 billion and non-GAAP EPS of $2.16 to $2.19.

Margins widen

"We delivered an excellent third quarter, exceeding every one of our guided metrics," Co-CEO Steve Vintz said in the release. He said that as AI reshapes how organizations manage cyber exposure, "security is becoming its own business function tied to business risk and growth."

GAAP operating income more than doubled to $16.7 million from $7.1 million, lifting GAAP operating margin to 6.0% from 2.8%. Gross profit rose to $215.1 million from $195.7 million, while total operating expenses grew more slowly, to $198.3 million from $188.6 million. Non-GAAP operating margin rose 380 basis points to 27.1%.

GAAP net income climbed to $11.3 million, or $0.10 a diluted share, from $2.3 million, or $0.02. Non-GAAP net income increased to $72.9 million from $51.4 million.

Cash from operations rose to $72.5 million from $53.9 million, and unlevered free cash flow grew to $69.4 million from $58.5 million.

Customer expansion

Tenable added 413 new enterprise platform customers and 39 net new six-figure customers in the quarter. Its dollar-based net expansion rate edged up to 107% from 106% in the second quarter.

"Customers are moving from conversation to commitment, and this quarter that increasingly meant expanding their relationship with Tenable One," Co-CEO Mark Thurmond said.

The company also said it integrated Anthropic's Claude Mythos model into its Tenable One platform to power a feature called Adversary View, which is designed to help security teams find hidden attack paths.

Convertible notes and buybacks

During the quarter, Tenable closed an upsized $800 million convertible senior notes offering and a new $400 million secured revolving credit facility. It repurchased 6.8 million shares for $223.8 million, including 5.3 million shares for $170.5 million in connection with the convertible notes issuance.

The balance sheet at Sept. 30 showed $779.0 million of convertible senior notes and no term loan, compared with a $354.2 million term loan, net of current portion, at the end of 2025. Cash and cash equivalents rose to $317.4 million from $187.8 million.

The outlook

For the fourth quarter, Tenable expects revenue of $277.0 million to $280.0 million and non-GAAP EPS of $0.56 to $0.58, based on 114.0 million diluted shares.

For the full year, it projects non-GAAP operating income of $270.0 million to $273.0 million and unlevered free cash flow of $289.0 million to $295.0 million.

Sources

1. Tenable Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001660280-26-000050)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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