This article first appeared on GuruFocus.
Revenue: Q4 revenue increased 6% to $270 million; full year revenue totaled $1.08 billion, up 4%.
Cloud Revenue: Q4 cloud revenue totaled $109 million, up 20%; full year cloud revenue increased 21% to $408 million.
RPO (Remaining Performance Obligations): Increased 25% to $2.2 billion.
Adjusted Earnings Per Share: Q4 adjusted EPS increased to $1.21; full year adjusted EPS increased 7% to $5.06.
Operating Margin: Q4 adjusted operating margin was 33.8%; full year adjusted operating margin was 35.8%.
Free Cash Flow Margin: Q4 free cash flow margin was 52.7%; full year free cash flow margin was 34.6%.
Cash and Debt: Ended the year with $329 million in cash and zero debt.
Share Repurchases: Invested $75 million in share repurchases in Q4; $275 million in buybacks for 2025.
2026 Revenue Guidance: Full year revenue expected to be $1.133 billion to $1.153 billion, representing 10% growth excluding license and maintenance attrition.
2026 Cloud Revenue Guidance: Expected to increase 21% to $492 million.
2026 Adjusted EPS Guidance: Range of $5.04 to $5.20.
Release Date: January 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Manhattan Associates Inc (NASDAQ:MANH) achieved record cloud bookings in Q4 2025, contributing to a 25% increase in RPO to $2.2 billion.
The company reported a 20% growth in cloud revenue for Q4, with total revenue increasing by 6% to $270 million.
Manhattan Associates Inc (NASDAQ:MANH) introduced new AI capabilities, including the commercial availability of AI agents and the Agent Foundry, which are expected to drive productivity and customer satisfaction.
The company made strategic hires and reorganized its sales and marketing teams, which contributed to improved sales execution and market share gains.
Manhattan Associates Inc (NASDAQ:MANH) has a strong pipeline across diverse verticals, including retail, grocery, life sciences, and technology, indicating potential for continued growth in 2026.
The global macro environment remains turbulent, posing risks to Manhattan Associates Inc (NASDAQ:MANH)’s future performance.
The company faces a 4-point headwind to total revenue growth in 2026 due to maintenance and license attrition.
Manhattan Associates Inc (NASDAQ:MANH) experienced a customer liquidation headwind of $1.3 million in Q4, impacting cloud revenue.
The company anticipates a higher tax rate due to changes in US tax law, which could affect cash flow.
Services revenue, although returning to growth, has historically been a line item with lower visibility, posing challenges in forecasting.
Story Continues
Q: Can you provide an update on cloud migrations for WMS and the impact on the 2026 model? A: Eric Clark, President and CEO, explained that the conversion of on-prem customers to Active Warehouse began mid-2025 and has shown early success. The pipeline is building, and deals have already closed in Q1, contributing to a strong start. The company has added 100 services headcount in January, reflecting confidence in the business built around services.
Q: What drove the strong RPO numbers in Q4, and what products or geographies contributed to this strength? A: Eric Clark noted that the strength in Q4 RPO came from a variety of products and deal types across the entire product suite. This diversity gives confidence in the pipeline for the next year. The company introduced ramped ARR to provide a clearer picture of growth, especially with upcoming renewals.
Q: Can you elaborate on the services business outlook and the factors underpinning your confidence in 3% growth for 2026? A: Eric Clark highlighted that strong bookings growth in Q4 and throughout 2025 will drive services into 2026. Conversion programs initiated in mid-2025 are bearing fruit, and the Agentic AI opportunity is significant. The company has a unique advantage with its domain expertise and forward-deployed engineers.
Q: How are you monetizing the AI Agent and Agent Foundry, and what momentum do you expect in 2026? A: Eric Clark stated that the company is offering low-cost, low-risk 90-day proof of concepts to customers, with forward-deployed engineers assisting in building custom agents. The goal is to demonstrate significant value, leading to monetization through a standard uplift model similar to other products.
Q: What is the impact of the customer liquidation headwind on Q4 and the annualized effect for 2026? A: Dennis Story, CFO, confirmed a $1.3 million headwind in Q4, with an annualized impact of $2.5 million. This was unexpected but is now included in all future projections.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.