Tenable surges on earnings beat, expands share buyback program
Cybersecurity firm exceeds Q4 revenue targets with $260.5M, adds $150M to repurchase authorization
Tenable Holdings Inc. shares rallied in extended trading Tuesday after the cybersecurity company announced fourth-quarter results that beat analyst expectations and unveiled an expanded capital return program for shareholders.
The Columbia, Maryland-based company reported Q4 2025 revenue of $260.5 million, up 11% from the prior year, while full-year 2025 revenue reached $999.4 million, also an 11% increase year-over-year. Tenable exceeded all guided metrics for both the fourth quarter and full year, demonstrating resilience in the cybersecurity sector despite broader market volatility.
The earnings beat comes at a strategic moment for Tenable, which has seen its stock trade well below its 52-week high of $43.68. The company's current market capitalization stands at approximately $2.67 billion, with shares currently trading around $19.72. Analysts maintain an average price target of $34.37, suggesting significant upside potential if the company continues executing on its growth strategy.
"We delivered another quarter of strong operational and financial performance, exceeding our guidance across all metrics," said the company in its earnings announcement. The performance was underpinned by robust demand for cyber exposure management solutions as organizations continue to prioritize security investments in an increasingly complex threat landscape.
In a move to bolster shareholder confidence, Tenable's board authorized an additional $150 million for share repurchases, bringing the total remaining authorization to $338 million. This expansion signals management's confidence in the company's cash flow generation and long-term prospects. The company generated $277 million in unlevered free cash flow for the full year 2025, providing substantial capital for both strategic investments and shareholder returns.
The share repurchase program expansion is particularly notable given Tenable's current valuation metrics. The stock trades at a forward price-to-earnings ratio of 12.33 and a price-to-sales ratio of 2.74, which some analysts view as attractive relative to growth peers in the cybersecurity sector. With institutional investors holding approximately 98% of outstanding shares, the buyback program directly addresses the interests of the company's core ownership base.
Analyst sentiment remains broadly positive on Tenable, with 13 analysts rating the stock as either buy or strong buy, compared to 10 holding at neutral. No analysts currently recommend selling the shares, reflecting optimism about the company's positioning in the growing cybersecurity exposure management market.
The cybersecurity sector has faced pressure in recent months as investors rotated out of high-growth technology names, but Tenable's consistent execution and strong free cash flow generation have positioned it as a potential beneficiary when market sentiment improves. The company's focus on helping organizations identify and mitigate cybersecurity risks across increasingly complex digital environments has become increasingly relevant as enterprise attack surfaces expand.
Looking ahead, investors will be watching for guidance on 2026 and commentary on demand trends in the cybersecurity market. The additional share repurchase authorization provides flexibility for management to opportunistically buy back shares during periods of volatility, potentially supporting the stock price as the company works toward analyst price targets.
The earnings beat and expanded buyback program represent a dual catalyst for Tenable shares, addressing both fundamental performance expectations and capital allocation concerns. With $338 million remaining in repurchase authorization and a track record of exceeding guidance, the company has established momentum that could help close the gap between its current trading price and analyst targets in the coming quarters.