Tenable Holdings Q2 FY26 earnings call TENB

Tenable One achieved a record 50% of new business in Q2 FY26, demonstrating strong momentum. This was significantly driven by the new pricing and packaging introduced earlier in the year, which made the platform more accessible. Notably, the Tenable One Advanced offering saw greater-than-anticipated adoption, reflecting customer preference for its robust feature set and higher price point, which contributed to increased average deal sizes.

Hexa AI, Tenable's agentic engine for Tenable One, is experiencing high customer engagement. Over 80% of customers who open Hexa submit a prompt, and nearly half are using it to take action, not just consume information. Hexa users engage with an average of six Tenable One tools, indicating its effectiveness in orchestrating remediation and freeing security teams for higher-value work, as exemplified by identifying a single patch to neutralize 53 attack paths for one customer.

Tenable is actively securing customers' use of AI by extending AI Exposure coverage to include major AI models like Gemini, Claude, ChatGPT, and Copilot, as well as AI native development tools. The company is also deepening relationships with Frontier AI labs, including Anthropic (Project Glasswing) and OpenAI (Daybreak program). These partnerships provide early insights into the evolving attack landscape and reinforce the need for an integrated platform that can act with speed and context.

The quarter saw significant competitive displacements, with customers moving from legacy vulnerability management solutions to Tenable One. This included a 6-figure deal with a global manufacturing company, a 7-figure expansion with a leading financial services firm, and displacing a major competitor at a large European postal service. These wins highlight the increasing customer demand for unified exposure management and Tenable's ability to disrupt established relationships.

Tenable exceeded all guided metrics for Q2 FY26, reporting $268.5 million in revenue and $66.2 million in non-GAAP operating income. The net dollar expansion rate accelerated to 106%, the first increase in over four years, driven by strong expansion and renewals. The company repurchased 5.2 million shares for $100 million in Q2, with $108 million remaining on its authorization, demonstrating a commitment to returning capital to shareholders through buybacks.

Tenable One cloud exposure achieved FedRAMP high authorization during the quarter, a rigorous security standard that expands the company's opportunities within the U.S. federal government market. Additionally, the company reported a very strong quarter in Operational Technology (OT) security globally, indicating growing demand for securing industrial control systems and critical infrastructure.