EarningsQ3 2026 Earnings Report
MX:TENB Q3 2026 EPS Results
Actual EPS$11.84
Consensus EPS$9.54
Beat/MissBeat by +$2.29
One Year Ago EPS$7.89
MX:TENB Q3 2026 Revenue Results
Actual Revenue$5.19B
Expected Revenue$5.10B
Beat/MissBeat by +$90.38M
YoY Revenue Growth+9.49%
Earnings Announcement Details
QuarterQ3 2026
Date10/28/2026
TimeAfter Close
Conference CallWednesday, October 28, 2026
MX:TENB Upcoming Earnings
Tenable Holdings's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TENB Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Highlights significantly outweighed the limited lowlights, with accelerating net dollar expansion, record Tenable One adoption, strong platform conversions, higher profitability, raised full-year guidance, robust Hexa AI usage and multiple competitive wins. The main cautions were that Q4 revenue growth is guided below the Q3 rate and that the business impact of PHP2Shell remains unquantified.Company Guidance
Revenue and Full-Year Guidance Raised
Third-quarter revenue was $276.4 million, up 9.5% year-over-year and above the high end of the guided range. Tenable raised full-year 2026 revenue guidance to $1.084 billion to $1.087 billion, representing a year-over-year increase of 8.6% at the midpoint, and expects fourth-quarter revenue of $277 million to $280 million, up 6.9% year-over-year at the midpoint.
Accelerating Net Dollar Expansion
Net dollar expansion rate increased to 107% from 106% in Q2, marking the first time in more than four years that the expansion rate accelerated for two consecutive quarters. Management attributed the acceleration to strong expansion and renewal business, with platform expansion a primary driver.
Record Tenable One Adoption
Tenable One represented a record 59% of new business, up from 50% in Q2 and 39% in Q3 2025. The company ended the quarter with more than 5,000 Tenable One customers, and Q3 was its best quarter ever for Tenable One new logos, with more than half of new logos landing on the Advanced package.
Strong Customer Expansion and Deal Sizes
The company added 413 new enterprise customers and 39 net new six-figure accounts. New six-figure account annual contract value increased 18% year-over-year. Average Tenable One customer value is double that of stand-alone SKUs, while platform customers pay 15x what Nessus customers pay.
Platform Conversions Across the Customer Base
Hundreds of stand-alone vulnerability management customers transitioned to Tenable One, and legacy Tenable One customers converted to the new SKU. Management said all tracked measures for Tenable One new-logo activity were record-setting, with large Fortune 500 and Fortune 1000 customers moving from vulnerability management to the full platform.
Improved Profitability
Non-GAAP income from operations was $74.9 million, or 27.1% of revenue, compared with $58.9 million, or 23.3% of revenue, in Q3 2025. Operating margin increased by 380 basis points year-over-year while the company continued investing significantly in product development and sales capacity.
Higher Earnings Per Share
Non-GAAP earnings per share was $0.63 compared with $0.42 in Q3 2025, an increase of $0.21. The improvement reflected higher profitability and included a one-time discrete tax benefit of $0.03 per share.
Raised Profit and EPS Outlook
Full-year 2026 non-GAAP operating income guidance was raised to $270 million to $273 million, or 25.0% of revenue at the midpoint, representing a year-over-year increase of 310 basis points. Non-GAAP net income guidance was raised to $250 million to $253 million, up 29.4% year-over-year at the midpoint, and diluted EPS guidance was raised to $2.16 to $2.19, an increase of $0.59 year-over-year at the midpoint.
Strong Free Cash Flow and Liquidity
Unlevered free cash flow was $69.4 million, up 18.7% from $58.5 million in Q3 2025. The company ended the quarter with $495.3 million in cash and short-term investments and closed a revolving line of credit providing access to $400 million of additional liquidity.
Debt Refinancing and Share Repurchases
Tenable raised $800 million through a convertible note offering, used the proceeds to repay its existing Term Loan B, extended debt maturity to September 2031, and added $186 million in cash to the balance sheet at a significantly lower overall cost of capital. During the quarter, it repurchased 6.8 million shares for $223.5 million; year-to-date repurchases totaled 18.2 million shares for approximately $454 million, with $54 million remaining under the current authorization.
Hexa AI Usage and Automation Growth
Since June, Hexa AI evaluated more than 2 billion assets and findings. Customers using Hexa resolved 2 to 3x more critical exposures across affected asset types than comparable customers, while tasks that previously took weeks were being completed in hours and analyses that took days were completed in minutes. Hexa now operates as a coordinated fleet of agents that continuously identifies critical exposures, orchestrates remediation and verifies fixes.
PHP2Shell Customer Engagement
Following the PHP2Shell vulnerability disclosure, Hexa prompt volume increased by as much as 5x. Tenable shipped plug-ins overnight, held customer webinars with attendance described as off the charts, and worked with customers to assess affected instances and related exposure. Management said the event had little impact on the quarter because of its timing, but customer engagement, webinar attendance and web traffic were all up.
Expansion of AI Security Capabilities
Tenable brought Anthropic's Claude Mythos into Tenable One through Adversary View, which reasons like an attacker using Tenable telemetry to identify exposure chains and recommend fixes. The company also expanded Hexa AI, which is model agnostic and works with leading frontier and open-weight models.
CyberAgents Exchange Launch
Tenable launched the CyberAgents Exchange, described as the industry's first open-source, vendor-agnostic registry for cybersecurity AI agents and skills. Its AI inspector pairs OpenAI's ChatGPT cyber models with Tenable researchers to vet community-built components, and the exchange influenced a competitive Tenable One win at a financial services company where agentic AI was a key purchasing requirement.
Competitive Wins and Larger Platform Deals
Tenable won a competitive evaluation against a leading endpoint security platform provider based on asset discovery, exposure visibility, Hexa capabilities and tool consolidation. A Fortune 100 global technology company expanded through a multimillion-dollar agreement to the full platform, while a global software company expanded its contract by nearly $1 million through cloud security and adopted Hexa AI.
OT Security Momentum
OT security had a very strong quarter globally, including an outstanding quarter in federal business. Adoption also increased in state and local government, including critical infrastructure and water treatment customers.
Federal and Public-Sector Opportunity
Tenable reported strong federal results and major market leadership across a wide range of federal agencies. Management cited new AI security policies, participation with CISA and the JCDC on PHP2Shell response, involvement in the Gold Eagle AI security vulnerability clearinghouse and participation in Project Watershed 250. Management expects to continue taking and winning share in the U.S. public-sector space.
Recurring Revenue and Contracted Growth
Recurring revenue remained high at 95% of total revenue. Current remaining performance obligations grew 12%, and CCB growth accelerated to 9% in the third quarter. Management expects CCB growth to tick up slightly in Q4.
Gross Margin Stability
Non-GAAP gross margin was 81.5%, compared with 81.6% in Q3 2025 and within the company's historical low-80s range. Management expects gross margin to remain about that level, stating that Hexa is not putting pressure on gross margins because platform upgrades and add-on SKUs cover Hexa usage.
MX:TENB Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed