TENB Stock Forecast & Price Target

Tenable Holdings demonstrated solid financial performance in its recent quarter, with total revenue increasing by 11% year-over-year to $252.4 million, alongside a consistent 8% growth in current billings, which aligns with market expectations. The company's long-term Remaining Performance Obligations (RPO) showcased a remarkable 41% year-over-year increase, indicating strong future revenue visibility and a healthy sales pipeline, particularly due to the improved contributions from channel partners. Additionally, the potential for accelerating customer acquisition and upselling existing solutions, coupled with the wider adoption of non-vulnerability management products, supports a positive outlook for the company’s growth trajectory.

Tenable Holdings has witnessed a decline in key performance metrics such as Net Revenue Retention (NRR), which decreased to 106% and is projected to decline further by Q4 before stabilizing in FY26. Additionally, the company's non-GAAP operating margin has deteriorated year-over-year, prompting management to reduce 2025 operating margin guidance due to rising expenses linked to the recent Apex Acquisition. Compounding these issues, Tenable's gross margins have been adversely affected by investments in cloud products and increasing third-party cloud infrastructure costs, raising concerns about future profitability amid persistent macroeconomic pressures and competitive threats.