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1. Company Snapshot

1.a. Company Description

Manhattan Associates, Inc.develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations.It offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services; and Manhattan Active, a set of enterprise and store omni-channel solutions.


The company also provides inventory optimization, planning, and allocation solutions; maintenance services comprising customer support services and software enhancements; professional services, such as solutions planning and implementation, and related consulting services; and training and change management services.In addition, it resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals.The company offers products through direct sales personnel, as well as through partnership agreements with various organizations.


It serves grocery, food and beverage, manufacturing, medical and pharmaceutical, retail, third-party logistics, and wholesale industries.The company operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.Manhattan Associates, Inc.


was founded in 1990 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on MANH

Manhattan Associates' recent performance was negatively impacted by several factors. Fisher Asset Management and Bell Asset Management reduced their stakes in the company by 51.8% and 40.3%, respectively. Additionally, the New York State Common Retirement Fund decreased its position by 84.7%. An investigation by the Schall Law Firm into potential breaches of fiduciary duty by Manhattan Associates' directors and management may have also contributed to the negative sentiment. However, the company's Q1 earnings beat, with $1.24 per share, and revenue estimates, along with a "Moderate Buy" rating from analysts, may offset some of these concerns.

1.c. Company Highlights

2. Manhattan Associates Q1 2026 Earnings: Record Growth and Upgraded Outlook

Manhattan Associates delivered a stellar first‑quarter performance, with revenue climbing to $282 million—up 7% YoY and 13% excluding license and maintenance—while adjusted operating profit hit $91 million, translating to a 32.4% margin. Adjusted EPS rose 4% to $1.24, beating the $1.10 consensus. The company’s operating cash flow of $84 million enabled a $150 million share‑repurchase program, underscoring management’s confidence in the business’s cash‑generating capacity.

Publication Date: Apr -22

📋 Highlights
  • Revenue Growth:: Total revenue reached $282M (+7% YoY), with cloud revenue surging 24% to $117M and services revenue rising 4% to $126M.
  • Strong RPO Growth:: Remaining Performance Obligations (RPO) hit $2.35B (+24% YoY), driven by new logo performance and strong Q1 bookings.
  • Profitability & Efficiency:: Adjusted operating profit rose to $91M (32.4% margin), with $84M in operating cash flow and $150M invested in share repurchases.
  • Guidance Raised:: Full-year 2026 revenue guidance lifted to $1.147B–$1.157B (midpoint $1.152B), with cloud revenue midpoint of $495M (+21%) and adjusted EPS of $5.29–$5.37.

Revenue and Margin Surge

The company’s 11% revenue growth on a license‑and‑maintenance‑excl. basis, paired with a 7% all‑in rise, signals robust demand across its product suite. Adjusted operating margin targets of 35% for the year reflect a disciplined focus on high‑margin cloud and services segments, while the 32.4% achieved in Q1 confirms that the company is on track to meet or exceed this goal.

Cloud Dominance

Cloud revenue surged 24% to $117 million, driven by strong execution, catch‑up overage fees, and a lower churn rate. Staff noted that “the 24% cloud subscription growth was driven by strong execution.” Cloud’s 21% year‑ahead growth, with a 1% FX tailwind, positions the company well against competitors that are lagging in cloud adoption.

Services and RPO

Services revenue grew 4% to $126 million, supported by a 120‑person expansion of the services team and a focus on outcome‑based sales. Q1 RPO rose 24% YoY to $2.35 billion, indicating healthy pipeline and new logo momentum. The company’s high win‑rate (>70%) and solid renewal performance reinforce its competitive moat.

Guidance and Outlook

Manhattan raised its full‑year 2026 revenue guidance to $1.147‑$1.157 billion, with a midpoint of $1.152 billion, and lifted adjusted EPS to $5.29‑$5.37. Q2 revenue targets of $285‑$289 million and adjusted EPS of $1.30 reflect confidence in continued execution, while the company remains cautious about macro volatility.

Agentic and Subscription Shift

The 90‑day paid pilot for the Agentic solution has sparked conversations about subscription conversion, with customers citing ROI from overtime reduction. Positive reception to the subscription model, especially via the Google Cloud Marketplace, signals a successful go‑to‑market shift toward simpler, consumption‑based pricing.

Valuation Snapshot

With a P/E of 37.16 and a P/B of 39.24, Manhattan trades at a premium to its peers, reflecting high growth expectations. EV/EBITDA stands at 26.58, while ROIC and ROE are impressive at 76.84% and 78.22% respectively, underscoring the company’s efficient capital deployment and strong profitability.

3. NewsRoom

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Rosen Law Firm Announces Investigation of Breaches of Fiduciary Duties by the Directors and Officers of Manhattan Associates, Inc. – MANH

Apr -29

Source: globenewswire.com

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Manhattan Associates, Inc. (NASDAQ:MANH) Given Average Recommendation of “Moderate Buy” by Analysts

Apr -27

Source: defenseworld.net

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Manhattan Associates' Moat Remains Wide, And Now Is A Time To Buy

Apr -23

Source: seekingalpha.com

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Why Manhattan Associates Stock Blasted Nearly 6% Higher on Wednesday

Apr -22

Source: fool.com

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Manhattan Associates, Inc. Investor News: Rosen Law Firm Announces Investigation of Breaches of Fiduciary Duties by the Directors and Officers of Manhattan Associates, Inc. - MANH

Apr -22

Source: prnewswire.com

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MANH Investors Have the Opportunity to Join Investigation of Manhattan Associates, Inc. with the Schall Law Firm

Apr -22

Source: globenewswire.com

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Compared to Estimates, Manhattan Associates (MANH) Q1 Earnings: A Look at Key Metrics

Apr -21

Source: zacks.com

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Manhattan Associates, Inc. (MANH) Q1 2026 Earnings Call Transcript

Apr -21

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.03%)

6. Segments

Services

Expected Growth: 12%

Manhattan Associates' 12% growth driven by increasing adoption of omnichannel commerce, rising demand for supply chain optimization, and growing need for inventory management solutions. Additionally, the company's investments in artificial intelligence, machine learning, and cloud-based technologies have enhanced its offerings, attracting new customers and expanding existing relationships.

Cloud Subscriptions

Expected Growth: 15%

Manhattan Associates' Cloud Subscriptions growth is driven by increasing adoption of omnichannel commerce, rising demand for supply chain visibility, and growing need for warehouse management efficiency. Additionally, the company's investments in artificial intelligence, machine learning, and IoT capabilities are enhancing its cloud-based offerings, further fueling growth.

Maintenance

Expected Growth: 8%

Manhattan Associates' Maintenance segment growth is driven by increasing adoption of cloud-based supply chain management solutions, rising demand for omnichannel fulfillment, and growing need for predictive analytics to optimize logistics operations. Additionally, the company's focus on innovation, strategic partnerships, and expanding global presence contribute to its 8% growth.

Hardware

Expected Growth: 6%

Manhattan Associates' Hardware segment growth is driven by increasing adoption of omnichannel commerce, rising demand for warehouse management systems, and growing need for supply chain visibility. Additionally, the company's focus on cloud-based solutions, artificial intelligence, and IoT integration is fueling growth.

Software License

Expected Growth: 11%

Manhattan Associates' software license growth is driven by increasing adoption of omnichannel commerce, rising demand for supply chain visibility, and growing need for warehouse management efficiency. Additionally, the company's focus on cloud-based solutions, strategic partnerships, and geographic expansion contribute to its 11% growth.

7. Detailed Products

Warehouse Management

A comprehensive solution that manages and optimizes warehouse operations, including inventory management, order fulfillment, and labor management.

Transportation Management

A solution that optimizes transportation operations, including route optimization, carrier management, and freight audit and payment.

Order Management

A solution that manages the entire order lifecycle, including order capture, inventory allocation, and fulfillment.

Inventory Optimization

A solution that uses advanced analytics to optimize inventory levels, reducing stockouts and overstocking.

Supply Chain Visibility

A solution that provides real-time visibility into supply chain operations, enabling proactive decision-making and improved collaboration.

Omni-Channel Fulfillment

A solution that enables retailers to fulfill orders from any channel, including online, in-store, and mobile.

8. Manhattan Associates, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Manhattan Associates, Inc. is medium due to the presence of alternative supply chain management solutions.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major retailers and manufacturers, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the company's strong negotiating position.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry is medium due to the presence of several established competitors, but the company's strong market position and differentiated products mitigate the competitive pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.93%
Debt Cost 3.95%
Equity Weight 93.07%
Equity Cost 11.22%
WACC 10.71%
Leverage 7.45%

11. Quality Control: Manhattan Associates, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Aspen Technology

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Value: 3.3

Growth: 5.1

Quality: 5.9

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

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Tyler Technologies

A-Score: 4.4/10

Value: 0.7

Growth: 7.2

Quality: 7.6

Yield: 0.0

Momentum: 2.5

Volatility: 8.3

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Progress Software

A-Score: 4.2/10

Value: 4.4

Growth: 6.4

Quality: 5.9

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

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Manhattan Associates

A-Score: 4.1/10

Value: 0.8

Growth: 7.9

Quality: 8.7

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

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Elastic

A-Score: 3.8/10

Value: 3.2

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

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Agilysys

A-Score: 3.8/10

Value: 0.0

Growth: 7.9

Quality: 7.5

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

142.1$

Current Price

142.1$

Potential

-0.00%

Expected Cash-Flows