Manhattan Associates (NASDAQ:MANH) Releases Earnings Results, Beats Expectations By $0.09 EPS

Manhattan Associates (NASDAQ:MANH) issued 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. Manhattan Associates had a net margin of 18.67% and a return on equity of 86.72%. The company had revenue of $306.19 million during the quarter, compared to analyst estimates of $297.01 million.

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 Stock Down 1.0%

Manhattan Associates stock traded down $2.42 during trading hours on Tuesday, hitting $233.98. The stock had a trading volume of 862,751 shares, compared to its average volume of 749,750. The stock has a market capitalization of $13.64 billion, a P/E ratio of 67.04 and a beta of 0.95. Manhattan Associates has a 12-month low of $119.06 and a 12-month high of $242.63. The stock’s 50-day moving average price is $213.57 and its 200-day moving average price is $165.35.

Insider Buying and Selling

In related news, CEO Eric Clark sold 3,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were 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 owned 89,638 shares of the company’s stock, valued at $17,726,810.88. This trade represents a 3.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP James Gantt sold 5,139 shares of the business’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 transaction of $1,004,828.67. Following the completion of the transaction, the executive vice president owned 55,676 shares of the company’s stock, valued at approximately $10,886,328.28. The trade was a 8.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.84% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on MANH shares. DA Davidson cut shares of Manhattan Associates from a “buy” rating to a “neutral” rating and set a $210.00 price objective on the stock. in a report on Monday, September 28th. Barclays lifted their target price on shares of Manhattan Associates from $201.00 to $239.00 and gave the company an “overweight” rating in a report on Tuesday, September 8th. Citigroup lifted their target price on shares of Manhattan Associates from $203.00 to $260.00 and gave the company a “buy” rating in a report on Tuesday, October 20th. Morgan Stanley raised Manhattan Associates from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $180.00 to $250.00 in a research report on Monday, October 12th. Finally, UBS Group restated a “buy” rating on shares of Manhattan Associates in a research note on Wednesday, October 14th. Eight research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $229.33.

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.