TENB Stock Forecast & Price Target

Tenable Holdings demonstrated solid financial performance in the second quarter, with current billings and total revenue growing by 8% and 11% year-over-year, respectively, outperforming consensus expectations. The company's long-term remaining performance obligation (RPO) surged by 41% year-over-year, indicating strong future revenue potential, while channel partners contributed to 94% of revenue, highlighting effective distribution strategies. Additionally, the increasing adoption of non-vulnerability management products suggests a potential acceleration in revenue growth, further supporting a favorable outlook for the company's stock.

Tenable Holdings has shown a downward trend in key financial metrics, with the Net Revenue Retention (NRR) rate declining to 106% and projected to decrease further in Q4. The company's non-GAAP operating margins have also decreased year-over-year, leading management to prudently lower 2025 guidance, partly due to increased expenses from the recent Apex Acquisition. Additionally, Tenable continues to face pressures from declining gross margins linked to its cloud investments, alongside significant macroeconomic challenges and competitive threats, which could adversely affect investor sentiment and the company’s stock valuation.