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Manhattan Associates
(NASDAQ:MANH)
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Rating:80Outperform
Price Target:
$227.00
▲(6.52% Upside)
Action:Reiterated
Date:08/18/26
The score is supported most by strong financial performance (profitability and standout free-cash-flow generation) and positive technical momentum. Raised guidance and strong bookings/RPO trends from the latest earnings call add confidence, while the high P/E valuation and watch-items around TTM gross margin and a reduced equity base keep the score from rating higher.
Positive Factors
Cloud and backlog growth
Strong cloud growth and expanding RPO support a larger recurring revenue base and improve forward visibility. Continued demand for supply-chain modernization should support durable adoption, while multi-year contracted revenue reduces dependence on individual project timing.
Negative Factors
Maintenance attrition and services pressure
The shift from legacy maintenance toward cloud can improve the long-term mix, but it creates an ongoing transition burden. Declining maintenance and weaker EMEA implementation activity may constrain near-term revenue growth and require sustained execution to replace legacy revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Cloud and backlog growth
Strong cloud growth and expanding RPO support a larger recurring revenue base and improve forward visibility. Continued demand for supply-chain modernization should support durable adoption, while multi-year contracted revenue reduces dependence on individual project timing.
Read all positive factors
Manhattan Associates Key Performance Indicators (KPIs)
Any
Revenue By Geography
Breaks down sales by region to show which markets drive growth and where the company is most dependent on local demand. Reveals geographic concentration risk, international expansion progress, and where product adoption or market share gains are occurring, helping assess future growth potential and exposure to regional economic cycles or currency swings.
Breaks down sales by region to show which markets drive growth and where the company is most dependent on local demand. Reveals geographic concentration risk, international expansion progress, and where product adoption or market share gains are occurring, helping assess future growth potential and exposure to regional economic cycles or currency swings.
Data provided by:
The Fly
The FlyManhattan Associates (MANH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.59B
Dividend YieldN/A
Average Volume (3M)668.02K
Price to Earnings (P/E)63.6
Beta (1Y)1.23
Revenue Growth6.48%
EPS Growth-3.07%
CountryUS
Employees4,100
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)3.52
Shares Outstanding58,304,974
10 Day Avg. Volume694,950
30 Day Avg. Volume668,021
Financial Highlights & Ratios
PEG Ratio21.19
Price to Book (P/B)33.30
Price to Sales (P/S)9.69
P/FCF Ratio28.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$213.43Price Target Upside0.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)5.5
Revenue Forecast (FY)$1.16B
Manhattan Associates Business Overview & Revenue Model
Company Description
Manhattan Associates, Inc. develops comprehensive software solutions to manage and optimize supply chains, inventory, and omni-channel operations. Their product portfolio features Manhattan SCALE, a suite of logistics execution tools covering aspe...
How the Company Makes Money
Manhattan Associates makes money primarily by selling its supply chain and omnichannel commerce software and by providing related services.
1) Software subscriptions (cloud/SaaS): A core revenue stream comes from customers paying recurring fees t...
Manhattan Associates Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution and momentum: record bookings, robust cloud revenue acceleration (26% YoY), raised revenue and EPS guidance, improved RPO and cash generation, rapid early traction for AI agents and a strategic product packaging (Editions) to broaden the addressable market. Offsetting items include FX headwinds, a one-time restructuring charge, maintenance attrition, modest near-term AI revenue contribution, EMEA services timing, and reinvestment-related accruals limiting immediate margin benefit. Overall, positive operational and financial momentum with manageable near-term headwinds.Positive Updates
Strong Cloud Revenue Growth
Cloud revenue increased 26% year-over-year to $127 million in Q2; full-year cloud revenue midpoint raised to $505.5 million (24% growth). Q3 cloud target ~$130M and Q4 ~$132M.
Negative Updates
FX Volatility Impact
Foreign exchange was a volatile factor: Q2 FX was a 70 bps tailwind to YoY total revenue but acted as a ~$3M headwind to sequential RPO growth and about a $9M headwind to YoY RPO growth. Guidance assumes FX neutral for full year but a 1-point headwind in H2 versus prior view.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cloud Revenue Growth
Cloud revenue increased 26% year-over-year to $127 million in Q2; full-year cloud revenue midpoint raised to $505.5 million (24% growth). Q3 cloud target ~$130M and Q4 ~$132M.
Read all positive updates
Company Guidance
Management raised its 2026 outlook and provided detailed targets: RPO is expected toward the high end of $2.62B–$2.68B (18%–20% growth), up from Q2 RPO of $2.47B (+23% YoY, +5% sequential), with ~39% of RPO to be recognized in the next 24 months; full‑year total revenue guidance is $1.160B–$1.166B (midpoint $1.163B, ~11% ex‑license/maintenance attrition, ~8% all‑in) with Q3 revenue $294M–$298M and Q4 ≈$287M; cloud revenue midpoint was raised to $505.5M (24% growth) with Q3 cloud ≈$130M and Q4 ≈$132M; service revenue is expected to be $513.5M (+2%) with Q3 ≈$133M and Q4 ≈$122M (EMEA services to trough in Q3); maintenance is expected to decline ~12% to ~$114M (Q3 ~$27M, Q4 ~$26M), license ≈$1M/quarter and hardware $5M–$6M/quarter. Profitability and cash metrics were also improved: full‑year adjusted operating margin nudged to ~35.1% (Q3 ~36.9%, Q4 ~36.1%), Q2 adjusted operating profit was $104M (34.9% margin), Q2 adjusted EPS $1.39 (+6%) and GAAP EPS $0.85 (impacted by an ~$8M/$0.11 restructuring charge); full‑year adjusted EPS guidance is $5.44–$5.50 (Q3 $1.45, Q4 $1.37) and GAAP EPS midpoint rose to $3.62 (Q3 GAAP ≈$1.00). Additional balance‑sheet/cash items: Q2 operating cash flow $91M (+22%), free cash flow margin 30.1%, adjusted EBITDA margin 35.4%, deferred revenue $343M (+14%), cash $186M/no debt, $125M repurchased in Q2 ($275M YTD) with $225M remaining buyback authority; expected tax rate ~22% and diluted share count ~59M (no buybacks assumed).Manhattan Associates Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
91
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.13B | 1.08B | 1.04B | 928.73M | 767.08M | 663.64M |
| Gross Profit | 615.45M | 602.74M | 565.07M | 492.36M | 402.18M | 357.90M |
| EBITDA | 290.03M | 292.21M | 273.12M | 219.42M | 164.78M | 141.99M |
| Net Income | 210.23M | 219.95M | 218.36M | 176.57M | 128.96M | 110.47M |
Balance Sheet | ||||||
| Total Assets | 698.65M | 839.39M | 757.55M | 673.35M | 570.18M | 539.71M |
| Cash, Cash Equivalents and Short-Term Investments | 186.11M | 328.75M | 266.23M | 270.74M | 225.46M | 263.71M |
| Total Debt | 53.88M | 112.36M | 47.79M | 17.69M | 14.06M | 23.16M |
| Total Liabilities | 541.14M | 524.62M | 458.43M | 395.07M | 343.38M | 289.06M |
| Stockholders Equity | 157.51M | 314.76M | 299.13M | 278.28M | 226.80M | 250.64M |
Cash Flow | ||||||
| Free Cash Flow | 399.19M | 374.01M | 286.33M | 241.49M | 173.04M | 181.17M |
| Operating Cash Flow | 414.88M | 389.47M | 295.00M | 246.22M | 179.63M | 185.18M |
| Investing Cash Flow | -15.69M | -15.46M | -8.68M | -4.73M | -6.59M | -4.02M |
| Financing Cash Flow | -435.00M | -315.16M | -286.37M | -196.05M | -204.46M | -120.42M |
Manhattan Associates Technical Analysis
Positive
213.10
Price Trends
171.77
Positive
155.28
Positive
156.85
Positive
Market Momentum
12.88
Negative
76.82
Negative
91.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MANH, the sentiment is Positive. The current price of 213.1 is above the 20-day moving average (MA) of 201.02, above the 50-day MA of 171.77, and above the 200-day MA of 156.85, indicating a bullish trend. The MACD of 12.88 indicates Negative momentum. The RSI at 76.82 is Negative, neither overbought nor oversold. The STOCH value of 91.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MANH.
Manhattan Associates Risk Analysis
Manhattan Associates disclosed 41 risk factors in its most recent earnings report. Manhattan Associates reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Manhattan Associates Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $8.24B | 23.17 | 37.43% | ― | 17.26% | ― | |
80 Outperform | $12.59B | 63.57 | 85.23% | ― | 6.48% | -3.07% | |
73 Outperform | $3.91B | 41.65 | 12.46% | ― | 24.21% | 206.42% | |
72 Outperform | $11.16B | 40.88 | 24.10% | 0.89% | 12.85% | 14.73% | |
66 Neutral | $15.91B | 106.40 | 10.99% | ― | 24.92% | 356.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MANH
Manhattan Associates
223.28
7.84
3.64%
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BSY
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MNDY
Monday.com
99.51
-93.50
-48.44%
Manhattan Associates Corporate Events
Business Operations and StrategyFinancial Disclosures
Manhattan Associates Announces Workforce Reduction and Restructuring Plan
Negative
Jun 1, 2026
On June 1, 2026, Manhattan Associates, Inc. began implementing plans to cut its global workforce by about 6%, citing gains in operational efficiency and a desire to redirect spending toward key strategic priorities. The company expects to record l...
Business Operations and StrategyShareholder Meetings
Manhattan Associates Shareholders Approve Expanded Equity Incentive Plan
Positive
May 20, 2026
On March 20, 2026, Manhattan Associates’ board adopted the first amendment to its 2020 Equity Incentive Plan, and shareholders approved it at the annual meeting on May 14, 2026, signaling investor support for expanded equity-based compensati...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.