Tenable HoldingsTENB +10.05%69 Gross Margin % is 78.38% as of Mar. 2026, which is 4% below its 10-year median of 81.36. GuruFocus rates TENB with a GF Score™ of 69/100 and a GF Value™ of $48.79 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,685 Software companies, Tenable Holdings ranks better than 87.08% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tenable Holdings had a gross margin of 78.38% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tenable Holdings Gross Margin % Related Terms
Tenable Holdings Gross Margin % Historical Data
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The historical data trend for Tenable Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Tenable Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tenable Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Tenable Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tenable Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tenable Holdings (TENB) has a Gross Margin % of 78.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tenable Holdings and its competitors. This is near median its historical median of 81.36. Over the past decade, Tenable Holdings' Gross Margin % has ranged from 77.02 to 88.57. According to the industry distribution chart, Tenable Holdings ranks #347 out of 2685 companies in the Software industry, placing it in the top 12.9%.
Is Tenable Holdings' Gross Margin % too high?
Tenable Holdings' current Gross Margin % of 78.38% is near median its 10-year median of 81.36. Over the past 10 years, this metric has ranged from a low of 77.02 to a high of 88.57. The Software industry median Gross Margin % is 40.45. Tenable Holdings' value of 78.38% is 93.8% above this industry median. Based on the distribution chart, Tenable Holdings ranks #347 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tenable Holdings has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tenable Holdings' Gross Margin % compare to TDC and NTCT?
According to the Software industry distribution chart, Tenable Holdings ranks #347 out of 2685 companies for Gross Margin %. This places Tenable Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Tenable Holdings' value of 78.38% is 93.8% above this benchmark. Historically, Tenable Holdings' own Gross Margin % has ranged from 77.02 to 88.57 over the past decade. While the company's 10-year median is 81.36 vs. the industry median of 40.45, Tenable Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tenable Holdings's current Gross Margin % of 78.38% is 93.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tenable Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tenable Holdings's current Gross Margin % is 78.38%, which is near median its own 10-year median of 81.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tenable Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tenable Holdings (TENB) is currently considered Possible Value Trap. The stock's GF Value™ is $48.79, compared to a current price of $30.20 — trading 38.1% below its estimated fair value. The current Gross Margin % is 78.38%, which is near median its 10-year median of 81.36 and 93.8% above the Software industry median of 40.45. Tenable Holdings' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tenable Holdings (TENB), the current Gross Margin % is 78.38% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tenable Holdings (TENB) Overvalued in 2026?
Based on GuruFocus' analysis, Tenable Holdings stock appears to be undervalued.
The current stock price of $30.20 is trading 38.1% below its estimated GF Value™ of $48.79.
GuruFocus considers Tenable Holdings to be Possible Value Trap.
Key valuation signals for TENB:
Gross Margin %: 78.38% (near median its 10-year median of 81.36)
GF Value™: $48.79 vs. price of $30.20 (38.1% below fair value)
Industry Position: 93.8% above the Software median (#347 of 2685)
No single metric tells the full story. See the TENB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 2002, Tenable is a cybersecurity company that began providing vulnerability management solutions under its Nessus software. In recent years, Tenable has expanded its portfolio to provide a broader range of exposure management modules. Solutions include cloud security and compliance, active directory management, operational technology security and advanced vulnerability analytics. The Maryland-based company went public in 2018.
69GF Score
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