Abstract
Tenable Holdings Inc. will report quarterly results on February 04, 2026 Post Market, with consensus pointing to moderate top-line growth and improving profitability supported by stable gross margin and operating leverage.
Market Forecast
For the current quarter, Tenable Holdings Inc. is projected to deliver revenue of $251.73 million, up 8.69% year over year, with estimated EBIT of $58.48 million, reflecting a 22.96% year-over-year increase, and estimated EPS of $0.41, up 20.54% year over year. The company’s gross profit margin is modeled to remain broadly consistent with its last-reported level, and net profit margin is expected to trend higher alongside operating-scale gains; adjusted EPS is anticipated to rise with sustained subscription mix. The main business is expected to benefit from resilient subscription demand and steady renewals, while professional services remains a small but supportive contributor. The most promising segment is subscription, which remains the revenue engine with a high proportion of total sales and a mid-to-high single-digit growth outlook in the quarter.
Last Quarter Review
In the last reported quarter, Tenable Holdings Inc. delivered revenue of $252.44 million, a gross profit margin of 77.52%, GAAP net profit attributable to the parent company of $2.26 million, a net profit margin of 0.90%, and adjusted EPS of $0.42, with revenue up 11.16% year over year and adjusted EPS up 31.25% year over year. A key highlight was the stronger-than-expected operating result as EBIT reached $58.91 million, exceeding prior estimates and underscoring operating leverage. The main business mix was anchored by subscription at $232.21 million, with perpetual license and maintenance at $11.09 million and professional services and other at $9.14 million, indicating a balanced yet subscription-weighted model.
Current Quarter Outlook (with major analytical insights)
Core Subscription Business Momentum
Tenable Holdings Inc.’s subscription business remains the foundation of quarterly performance by contributing the overwhelming share of revenue and gross profit. The forecast for revenue growth of 8.69% year over year aligns with stable enterprise renewal activity, expansion in strategic accounts, and continued adoption of cloud-delivered offerings. Given the last quarter’s gross profit margin of 77.52%, mix stability should sustain margin quality as subscription continues to outweigh licenses and services. The company’s operating model indicates improving efficiency, with estimated EBIT growth of 22.96% year over year outpacing revenue growth, signaling a path of margin expansion supported by prudent expense control and moderate hiring. Customer focus on consolidating security vendors can provide tailwinds for broader platform uptake, which may support upsell motions within existing accounts while tempering pricing pressure.
High-Visibility Revenue Engine and the Most Promising Segment
Subscription stands out as the key growth engine this quarter due to its recurring profile and prominent share of total revenue. With the prior quarter’s subscription revenue at $232.21 million, the revenue base provides visibility for sequential contributions from renewals, multi-year contracts, and cross-sell into broader exposure management solutions. The forecasted adjusted EPS of $0.41, rising 20.54% year over year, suggests the subscription-weighted mix is translating into stronger earnings power through better gross margins and operational scale. The revenue run-rate and consistent mix also imply improved cash conversion potential as billings seasonality moderates and customer cohorts mature, allowing subscription to remain the most promising segment by both magnitude and growth durability.
Key Stock Price Drivers in the Quarter
Three factors are likely to dominate the stock’s near-term trading reaction: revenue growth relative to consensus, margin trajectory, and the quality of the forward guide. With the consensus calling for $251.73 million in revenue and earnings metrics pointing to operating leverage, any over-delivery on growth—especially within subscription—should be viewed constructively. Margin commentary will be critical; investors will look for confirmation that gross margin holds near prior-quarter levels and that EBIT leverage remains intact, reinforcing the year-over-year expansion embedded in estimates. Finally, forward-looking commentary on demand trends, renewal rates, and pipeline conversion will shape expectations for subsequent quarters; constructive guidance that validates the current 8.69% growth pace—or better—could support multiple stability, while any signals of elongating deal cycles could temper sentiment.
Analyst Opinions
Recent analyst views are predominantly bullish. A recent note reiterated a Buy rating with a target price that underscores confidence in sustained execution and earnings leverage as the mix remains subscription-heavy and top-line growth holds in the high single digits. The supportive thesis highlights operating discipline, consistent renewal performance, and a measured approach to investment that underpins estimated EBIT growth of 22.96% year over year and EPS growth of 20.54% year over year this quarter. While some neutral stances exist, the prevailing view emphasizes that Tenable Holdings Inc. can sustain healthy gross margins near its last-reported level of 77.52% and continue to compound revenue at a steady rate, positioning the company to deliver upside if pipeline conversion and cross-sell momentum hold through February 04, 2026.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments