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    Is S&P’s Rating Upgrade And AI Security Push Altering The Investment Case For Tenable (TENB)?

    Simply Wall St·12/08/2025 14:19:51
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    • S&P Global Ratings recently upgraded Tenable Holdings after being impressed by the company’s consistent revenue growth, stronger financial profile, and accelerating platform traction.
    • The upgrade also reflects Tenable’s expanded capabilities in operational technology and AI security, reinforced by its acquisition of Vulcan Cyber and growing exposure management adoption.
    • We’ll now examine how S&P’s upgrade and Tenable’s platform momentum may reshape the company’s investment narrative and future expectations.

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    Tenable Holdings Investment Narrative Recap

    To own Tenable, you need to believe exposure management can keep taking share as security environments grow more complex, and that its push toward an integrated platform ultimately improves profitability. S&P’s upgrade reinforces that near term catalyst by validating Tenable’s improved financial profile, but it does not remove the key risk that larger platform rivals and tight security budgets could still pressure renewals, margins and growth if customers slow expansion or consolidate elsewhere.

    Among recent developments, Tenable’s October Q3 2025 results look especially relevant to S&P’s decision, with revenue rising to US$252.44 million and the quarter turning a small net profit of US$2.26 million. That shift toward profitability, paired with continued revenue growth, supports the idea that the company’s expanding exposure management platform and acquisitions such as Vulcan Cyber are starting to show through in financials just as rating agencies and investors are focusing more on earnings quality and operating leverage.

    But against this improving story, investors should also be aware of how quickly bundled cybersecurity suites from larger vendors could...

    Read the full narrative on Tenable Holdings (it's free!)

    Tenable Holdings’ narrative projects $1.2 billion revenue and $33.8 million earnings by 2028.

    Uncover how Tenable Holdings' forecasts yield a $37.89 fair value, a 44% upside to its current price.

    Exploring Other Perspectives

    TENB Community Fair Values as at Dec 2025
    TENB Community Fair Values as at Dec 2025

    Six members of the Simply Wall St Community value Tenable between US$19.88 and US$53.71, highlighting very different expectations for upside. Set those views against the risk that larger, bundled cybersecurity platforms could compress margins and slow Tenable’s growth, and it becomes even more important to compare multiple perspectives on the company’s prospects.

    Explore 6 other fair value estimates on Tenable Holdings - why the stock might be worth 25% less than the current price!

    Build Your Own Tenable Holdings Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.