Tenable, a cybersecurity firm focused on proactive exposure management, has captured the interest of Wall Street, with many analysts recommending its stock as a compelling buy. Despite a significant 65% drop from its 2022 peak, this small-cap company, with a market capitalization of $2.5 billion, is seen as offering substantial growth potential. Its innovative solutions, including the renowned Nessus platform and the AI-driven Tenable One, are addressing the critical need for robust cybersecurity measures in an increasingly digital world.
Tenable’s core offering, Nessus, is widely recognized for its ability to identify and address system vulnerabilities before they can be exploited by malicious actors. This platform serves as an entry point for businesses to access Tenable’s broader suite of sophisticated products. In 2022, the company further enhanced its capabilities with the introduction of Tenable One, an all-encompassing exposure management solution. This platform is now augmented with artificial intelligence, significantly improving its effectiveness in pinpointing potential attack vectors that hackers might target.
The integration of ExposureAI within Tenable One empowers cybersecurity professionals to operate with greater efficiency. It rapidly aggregates data, uncovers latent risks, and delivers crucial insights that streamline decision-making processes. This advanced functionality has driven considerable demand, with Tenable One constituting 46% of all new business for the company in the fourth quarter of 2025, marking a new high. This statistic underscores the increasing corporate reliance on AI-powered cybersecurity solutions.
Tenable concluded 2025 with record-breaking total revenue of $999.4 million, an 11% increase from the previous year, surpassing management's projections. The company also expanded its customer base, reaching 2,161 clients with annual contract values exceeding $100,000, indicating successful penetration into larger organizations with substantial cybersecurity budgets.
While Tenable recorded a GAAP net loss of over $36 million in 2025, similar to 2024, its adjusted (non-GAAP) profit, excluding one-off and non-cash expenses, soared to $194.4 million, a 22% increase from 2024, exceeding management's forecasts. This financial performance, combined with its innovative product pipeline, has fueled Wall Street's optimistic outlook.
Currently, 23 analysts cover Tenable stock, with 12 issuing a buy rating and two categorizing it as overweight, while none recommend selling. Their consensus price target is $30.72, suggesting a potential 42% upside within the next 12 to 18 months. The most bullish prediction places the stock at $40, indicating an 85% potential gain.
The attractive valuation of Tenable's stock further supports these projections. Based on its 2025 revenue and current market capitalization, the company trades at a price-to-sales (P/S) ratio of just 2.5. This represents a significant discount compared to industry giants like CrowdStrike and Palo Alto Networks, which are valued at approximately $100 billion. Although these larger competitors exhibit faster revenue growth (16% for Palo Alto and 22% for CrowdStrike in their recent quarters), Tenable's substantial valuation gap, particularly an 88% discount to CrowdStrike, is considered overly steep given the quality of its operations. Even if Tenable reaches the consensus price target, its P/S ratio would still be a modest 3.6, highlighting its undervalued status in the market.