Track market-moving stories before they get noisy

A month has gone by since the last earnings report for Manhattan Associates (MANH - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Manhattan Associates due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

MANH Q2 Earnings Beat Estimates, Cloud Growth Fuels RevenuesManhattan Associates reported second-quarter 2026 non-GAAP adjusted earnings of $1.39 per share, beating the Zacks Consensus Estimate by 6.11% and increasing 6.1% year over year.

Revenues beat the consensus mark by 3.6% and climbed 9.3% year over year to $297.8 million. Management reported better-than-expected revenues and profitability, accelerating cloud growth and a sharp increase in remaining performance obligations.

RPO increased to $2.47 billion as of June 30, 2026, compared to $2.35 billion as of March 31, 2026, representing 23% growth year over year.

MANH's Q2 Top-Line DetailsCloud subscription revenues surged 26.2% year over year to $126.7 million. Software license revenues rose 25.9% year over year to $1.9 million, reflecting stronger deal activity within a still small revenue base. Maintenance revenues slipped 12.9% year over year to $30.5 million as customers continued migrating to cloud-native deployments. Services revenues grew 3.2% year over year to $133.0 million. Hardware revenues declined 14.4% year over year to $5.6 million.

On a geographic basis, Americas revenues grew 9.9% year over year to $227 million. EMEA revenues increased 5.9% year over year to $55.4 million. APAC revenues rose 14% year over year to $15.4 million.

Operating Details of MANHGAAP total costs and expenses rose 16.6% year over year to $231.6 million, driven in part by an $8.3 million restructuring charge tied to the June headcount reduction. GAAP operating income declined 10.2% year over year to $66.2 million. Non-GAAP adjusted operating income increased 2.7% year over year to $103.9 million.

GAAP net income declined 11.3% year over year to $50.4 million while GAAP EPS fell 8.6% year over year to 85 cents, reflecting the restructuring expense and elevated equity-based compensation costs relative to the year-ago period. Non-GAAP adjusted EPS grew 6.1% year over year to $1.39.

MANH's Q2 Balance Sheet & Cash FlowCash flow from operations grew 22.6% year over year to $90.7 million. Days Sales Outstanding improved to 67 days at June 30, 2026 from 72 days at March 31, 2026. Cash totaled $186.1 million at June 30, 2026, down 17.7% from $226.1 million at March 31, 2026, largely reflecting continued share repurchase activity.

Capital expenditures were $1 million in the second quarter of 2026, down 74.7% year over year from $4 million in the second quarter of 2025. Manhattan Associates ended the quarter with no debt on its balance sheet.

During the three months ended June 30, 2026, the company repurchased approximately 874,029 shares for a total of $125.0 million. Over the six months ended June 30, 2026, total repurchases reached 1,917,341 shares for $275.0 million. Approximately $225 million remained under the existing March 2026 repurchase authority as of quarter end.

MANH's 2026 GuidanceFor full-year 2026, Manhattan Associates raised guidance for total revenues to a range of $1.16 billion to $1.166 billion, implying 7-8% growth. GAAP operating margin guidance is 24.2% to 24.4% while non-GAAP adjusted operating margin is expected at 35-35.2%. GAAP EPS is projected at $3.59-$3.65 while non-GAAP adjusted EPS is guided at $5.44-$5.5, representing 8-9% growth.

Full-year 2026 cloud revenue guidance was raised, with the midpoint increasing to $505.5 million, implying approximately 24% growth.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresCurrently, Manhattan Associates has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Manhattan Associates has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerManhattan Associates belongs to the Zacks Computer - Software industry. Another stock from the same industry, Pegasystems (PEGA - Free Report) , has gained 9.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Pegasystems reported revenues of $420.72 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.35 for the same period compares with $0.28 a year ago.

Pegasystems is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of +60%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pegasystems. Also, the stock has a VGM Score of B.

3 Low P/E Stock ETFs for Hungry Value InvestorsManhattan Associates NASDAQ: MANH reported record second-quarter and first-half results for 2026, citing accelerating cloud revenue, three consecutive quarters of record bookings and growth in remaining performance obligations amid what executives described as a volatile global macroeconomic environment.

President and Chief Executive Officer Eric Clark said the company’s momentum was driven by continued product innovation and sales-and-marketing investments announced a year ago. Those investments included product-focused sales specialists, teams dedicated to on-premises-to-cloud conversions and renewals, expanded partner channels, and forward-deployed engineers supporting the company’s agentic artificial intelligence offerings.

Get Manhattan Associates alerts:

“Three consecutive quarters of record bookings give us confidence that our go-to-market approach is working,” Clark said.

Cloud Growth and Bookings Momentum Second-quarter total revenue rose 9% year over year to $298 million. Excluding license and maintenance revenue, which has been declining as customers transition to cloud subscriptions, total revenue increased 13%.

Cloud revenue increased 26% to $127 million, while services revenue rose 3% to $133 million. Chief Financial Officer Linda said cloud revenue outperformed expectations because of strong execution and upsells, which can generate revenue more quickly. About $1 million of implementation work also shifted from the third quarter into the second quarter.

Remaining performance obligations, or RPO, totaled $2.47 billion at quarter-end, up 23% from a year earlier and 5% sequentially. Foreign exchange was an approximately $3 million headwind to sequential RPO growth and a roughly $9 million headwind to year-over-year RPO growth, Linda said.

Clark said conversions from on-premises software to Manhattan Active accounted for more than 40% of new cloud bookings during the quarter. New logos represented more than 25% of new cloud bookings, while the company’s win rate remained above 70%. Sales to existing customers also accelerated, he said.

Executives said the stronger conversion activity represented less than 2% of the company’s conversion base during the quarter. Fewer than 25% of the company’s on-premises customer base had begun the conversion process, Clark said, leaving what he characterized as a sizable opportunity.

Adjusted operating profit was $104 million, producing a 34.9% adjusted operating margin. Adjusted earnings per share increased 6% to $1.39. GAAP earnings per share declined 9% to $0.85, reflecting about $8 million, or $0.11 per share, in restructuring expense. Operating cash flow rose 22% to $91 million, while free-cash-flow margin was 30.1%. The company ended the quarter with $186 million in cash and no debt. Manhattan repurchased $125 million of shares during the quarter and $275 million year to date. It had $225 million remaining under its share repurchase authorization announced in March.

AI Adoption Begins to Contribute Clark said Manhattan Active Agents are becoming a more meaningful differentiator in customer discussions and contributed to both deal activity and pipeline growth. The offering includes prebuilt agents that can be activated immediately, as well as an Agent Foundry that allows customers to build and deploy custom agents with assistance from Manhattan’s forward-deployed engineers.

The company said the agents are embedded in its cloud-native platform, reducing the need for customers to implement external data lakes. Clark said the technology combines deterministic workflows with probabilistic AI, using probabilistic models primarily for exception handling where they add value.

Since launching in the first quarter, Active Agents have reached more than 10% of the company’s Active install base through pilots or subscriptions. Manhattan said it has experienced a 100% conversion rate from AI pilot programs to subscriptions so far, though Clark cautioned that the offering has been commercially available for only two quarters and that the company does not yet have enough data to provide revenue guidance.

Linda said AI agents contributed to the company’s cloud revenue upside during the second quarter, but remained a relatively small contributor and were expected to remain so through the rest of 2026. Unlike other applications that generate revenue as deployments ramp, AI agents can be activated at full subscription value on the first day, executives said.

Clark cited customer operating results that included an 87% reduction in short picks at a healthcare products distributor, a 49% reduction in late shipment departures at a regional grocer, and a 21% reduction in order cycle time at the same grocer.

New Editions Expand Addressable Market Manhattan also announced three editions of its Manhattan Active solutions: Enterprise Premier, Enterprise and Essentials. Clark said the initiative changes packaging and pricing rather than introducing new products.

Enterprise Premier represents the company’s full-featured offering for the most complex supply chain and commerce operations. Enterprise is designed to give lower-volume or lower-complexity warehouse-management customers access to Active Warehouse rather than the company’s SCALE product, with a more prescribed feature set, lower subscription pricing and a rapid implementation methodology.

The Essentials edition is intended to extend warehouse, transportation, order-management and store capabilities to smaller companies, less complex sites within large enterprises and additional geographic markets at a lower cost than the Premier offering.

Clark described the editions as “a ladder, not a menu of different products,” allowing customers to begin on the Active platform and add functionality over time without replatforming. He said the initiative should create additional conversion opportunities among on-premises customers and broaden the market for smaller sites at existing enterprise clients.

The company began introducing the packaging to its sales organization during its midyear sales meeting. Clark said management does not expect material sales disruption because Manhattan was already pursuing similar customer segments with SCALE.

Raised 2026 Outlook Management raised its full-year outlook for revenue, operating margin and earnings per share. The company expects RPO to finish toward the high end of its prior $2.62 billion to $2.68 billion target range, representing growth of 18% to 20%.

Manhattan now expects full-year revenue of $1.16 billion to $1.166 billion, with a midpoint of $1.163 billion. The outlook represents 11% growth excluding license and maintenance attrition and 8% growth on an all-in basis. The forecast assumes foreign exchange will be neutral for the full year, compared with prior expectations for a one-percentage-point tailwind.

The company raised its cloud revenue midpoint to $505.5 million, representing 24% growth, and expects services revenue to rise 2% to $513.5 million. It forecast a full-year adjusted operating margin of about 35.1% and adjusted EPS of $5.44 to $5.50.

For the third quarter, Manhattan reaffirmed its total revenue target of $294 million to $298 million and expects adjusted EPS of $1.45. It is targeting approximately $287 million of revenue and adjusted EPS of $1.37 for the fourth quarter, accounting for retail peak-seasonality effects.

About Manhattan Associates (NASDAQ:MANH)Manhattan Associates, Inc NASDAQ: MANH is a provider of supply chain and omnichannel commerce software solutions designed to optimize the flow of goods, information and funds across enterprise operations. Its flagship offerings include warehouse management, transportation management, order management and omnichannel fulfillment applications. These solutions are delivered through a cloud-native platform called Manhattan Active, which enables retailers, manufacturers, carriers and third-party logistics providers to orchestrate inventory, manage distribution and improve customer service in real time.

Key product areas include Manhattan Active Warehouse Management, which automates and optimizes warehouse operations from receiving through shipping; Manhattan Active Transportation Management, supporting carrier selection, routing and freight payment; and Manhattan Active Omni, which unifies order capture, inventory visibility and fulfillment across stores, distribution centers and e-commerce channels.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Manhattan Associates Right Now?Before you consider Manhattan Associates, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Manhattan Associates wasn't on the list.

While Manhattan Associates currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.

Get This Free Report