Tenable (NASDAQ: TENB) reported third-quarter 2026 revenue of $276.4 million, up 9.5% year over year, while higher earnings and a 27.1% non-GAAP operating margin highlighted the cybersecurity company’s operating leverage. The company also projected full-year revenue of $1.084 billion to $1.087 billion as it continued to emphasize its Tenable One exposure-management platform.
Non-GAAP income from operations reached $74.9 million in the quarter. On a GAAP basis, Tenable recorded operating income of $16.7 million, representing a 6.0% operating margin. The difference primarily reflected $51.2 million of stock-based compensation, along with amortization of acquired intangible assets and other adjustments.
Third-quarter GAAP net income was $11.3 million, or $0.10 per diluted share, compared with $2.3 million, or $0.02 per diluted share, a year earlier. Non-GAAP net income rose to $72.9 million from $51.4 million, while non-GAAP diluted earnings per share increased to $0.63 from $0.42.
Tenable said it repurchased 18.2 million shares during the first nine months of 2026, contributing to a decrease in diluted shares outstanding. The weighted-average diluted share count used for both GAAP and non-GAAP earnings was approximately 116.0 million in the third quarter, down from about 122.0 million a year earlier.
Tenable One gains a larger role in new sales
Recurring revenue accounted for 95% of third-quarter revenue. Tenable One represented 59% of new sales, and the company added 413 enterprise platform customers during the quarter. More than 5,000 customers now use Tenable One for exposure management.
The number of customers generating at least $100,000 in annual contract value over the latest 12 months increased to 2,275 from 2,156 in the comparable period a year earlier. Tenable serves more than 40,000 customers across 160 countries, including approximately 65% of Fortune 500 companies.
Trailing-12-month revenue reached $1.07 billion, compared with $974.6 million for the period ended in the third quarter of 2025. Over the same period, non-GAAP operating income increased to $266.6 million from $214.6 million, and the corresponding margin expanded to 25.0% from 22.0%.
Third-quarter unlevered free cash flow was $69.4 million, or 25.1% of revenue. On a trailing-12-month basis, unlevered free cash flow totaled $290.8 million, with a margin of 27.2%, compared with $275.3 million and 28.2%, respectively, a year earlier. Tenable defines the measure as free cash flow plus cash paid for interest and other financing costs; it cautioned that the figure does not represent residual cash available for discretionary spending because of debt and other contractual obligations.
Full-year revenue forecast tops $1.08 billion
For the fourth quarter, management expects revenue of $277 million to $280 million and non-GAAP income from operations of $67.1 million to $70.1 million. Non-GAAP diluted earnings per share are projected at $0.56 to $0.58, based on approximately 114 million diluted weighted-average shares.
For full-year 2026, Tenable forecast revenue of $1.084 billion to $1.087 billion and non-GAAP operating income of $270 million to $273 million. The company expects non-GAAP diluted earnings per share of $2.16 to $2.19 and unlevered free cash flow of $289 million to $295 million.
Tenable’s product strategy centers on combining exposure data across cloud, identity, operational technology, web applications, devices and AI systems. The presentation also highlighted Tenable Hexa AI, an agentic layer intended to use connected exposure data to prioritize risks and orchestrate remediation, subject to customer approvals. Tenable noted that information about unreleased services or features describes general product direction and that their development, release and timing remain at the company’s discretion.
The outlook is subject to assumptions and risks that could cause actual results to differ materially. Tenable cited a competitive and rapidly changing operating environment and noted that projections for its performance and markets carry uncertainty. Its non-GAAP measures also exclude items including stock-based compensation, acquisition-related costs, restructuring expenses and amortization of acquired intangible assets, limiting direct comparability with measures reported by other companies.
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