Manhattan Associates (NASDAQ:MANH) Issues Earnings Results

Manhattan Associates (NASDAQ:MANH) released its quarterly earnings results on Tuesday. The software maker reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.46 by $0.09, FiscalAI reports. The firm had revenue of $306.19 million for the quarter, compared to analyst estimates of $297.01 million. Manhattan Associates’s revenue for the quarter was up 11.0% on a year-over-year basis. During the same period in the prior year, the business earned $1.36 earnings per share.

Here are the key takeaways from Manhattan Associates’ conference call:

• Strong Q3 execution: Revenue rose 11% to $306 million, cloud revenue increased 28% to $134 million, adjusted EPS grew 14% to $1.55, and RPO climbed 25% to $2.6 billion. The company reported its fourth consecutive quarter of record bookings.
• Manhattan raised its full-year 2026 outlook, including RPO growth of 21%, revenue of approximately $1.177 billion, a 35.3% adjusted operating margin, and adjusted EPS of $5.54-$5.56. Management also expects 20% cloud revenue growth in 2027, while acknowledging macroeconomic volatility.
• AI adoption is gaining traction: The company said AI contributed to Q3 cloud subscription revenue, with some customers moving directly from pilots to subscriptions and reported operational benefits including lower labor requirements, faster invoice resolution, and increased sales. Management cited a 100% pilot-to-subscription conversion rate to date.
• The new Editions packaging is expanding Manhattan’s addressable market by allowing smaller and less complex customers to adopt the Active platform. Early momentum includes multiple Enterprise Edition wins and the first Essentials Edition deal, while partner-sourced deals increased more than fourfold year over year.
• Services revenue grew only 1% in Q3, although management said faster implementations and a healthy pipeline support expectations for low-single-digit services growth. Cloud conversions are accelerating through fixed-price offerings, Editions, partners, and dedicated conversion teams, but the company expects the migration opportunity to develop over several years.

Manhattan Associates Trading Up 7.8%

MANH stock opened at $252.21 on Wednesday. The stock’s 50 day simple moving average is $214.32 and its 200 day simple moving average is $165.66. Manhattan Associates has a 12-month low of $119.06 and a 12-month high of $242.63. The firm has a market cap of $14.71 billion, a P/E ratio of 72.05 and a beta of 0.95.

Insider Activity

In related news, EVP James Gantt sold 5,139 shares of the firm’s stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $195.53, for a total value of $1,004,828.67. Following the sale, the executive vice president directly owned 55,676 shares in the company, valued at $10,886,328.28. This trade represents a 8.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Eric Clark sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $197.76, for a total transaction of $593,280.00. Following the completion of the sale, the chief executive officer directly owned 89,638 shares of the company’s stock, valued at approximately $17,726,810.88. This represents a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.84% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on MANH shares. Morgan Stanley raised shares of Manhattan Associates from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $180.00 to $250.00 in a research note on Monday, October 12th. DA Davidson lowered Manhattan Associates from a “buy” rating to a “neutral” rating and set a $210.00 target price on the stock. in a research report on Monday, September 28th. Barclays lifted their target price on Manhattan Associates from $201.00 to $239.00 and gave the company an “overweight” rating in a report on Tuesday, September 8th. Wall Street Zen upgraded Manhattan Associates from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Weiss Ratings raised shares of Manhattan Associates from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, October 2nd. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Manhattan Associates has a consensus rating of “Moderate Buy” and a consensus target price of $234.89.

Manhattan Associates News Roundup

Here are the key news stories impacting Manhattan Associates this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations. Adjusted EPS was $1.55 versus the $1.46 consensus, while revenue rose 11% year over year to $306.2 million, ahead of the $297.0 million estimate. Manhattan Associates Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management raised full-year 2026 guidance. Revenue is now expected at $1.176 billion-$1.178 billion, compared with the prior $1.160 billion-$1.166 billion range, while adjusted EPS guidance increased to $5.54-$5.56 from $5.44-$5.50. Manhattan Associates Provides 2026 Earnings Guidance
• Positive Sentiment: Cloud momentum and future contracted revenue remain strong. Cloud subscription revenue increased 28% to $134.4 million, and remaining performance obligations reached approximately $2.59 billion, supporting expectations for durable subscription growth. Management also said AI pilots are converting at a high rate and that new platform tiers could expand the addressable market. Manhattan Associates Raises Revenue Outlook and Discusses RPO Growth
• Neutral Sentiment: Board expertise was expanded. Manhattan Associates elected Juan Perez, a former Salesforce chief information officer, to its board, potentially adding enterprise technology and cloud expertise. Manhattan Associates Elects Juan Perez to Its Board
• Negative Sentiment: Valuation and insider selling are risks. MANH trades well above its 50-day and 200-day moving averages and carries a high earnings multiple. Recent insider activity included sales by the CEO and other executives, with no reported open-market purchases, which could temper enthusiasm if growth slows.

Manhattan Associates Company Profile

Manhattan Associates, Inc develops supply chain commerce software for retailers, wholesalers, manufacturers and logistics providers. Its solutions help organizations plan, execute and optimize inventory, warehouse, transportation and omnichannel fulfillment operations.

The company’s product portfolio includes warehouse management, transportation management, order management, inventory optimization, labor management and point-of-sale capabilities. Manhattan Associates also provides tools that support warehouse automation, store fulfillment, distributed order management and customer engagement across digital and physical retail channels.

Founded in 1990 and headquartered in Atlanta, Georgia, Manhattan Associates serves customers across North America, Europe, Asia-Pacific and other international markets.