Manhattan Associates (MANH) reported a net profit margin of 20.2%, slightly down from last year’s 21.4%, reflecting an earnings decline over the past year. The company’s impressive earnings growth rate has averaged 21.1% annually over the last five years. Going forward, earnings are projected to rise at a more moderate 11.7% per year. Despite being valued at a premium with a Price-to-Earnings ratio of 54.3x, Manhattan Associates now trades below its estimated fair value. Steady, if slower, revenue and profit growth remains in focus for investors.
See our full analysis for Manhattan Associates.
Next, we’ll see how these headline numbers stack up against the broader community narrative, where current beliefs might be reinforced and where they could be challenged.
See what the community is saying about Manhattan Associates
NasdaqGS:MANH Revenue & Expenses Breakdown as at Oct 2025
Recurring cloud and AI-powered software solutions are driving higher-margin revenue, with recent filings noting over 20% cloud segment growth and consistent contract pipeline expansion.
According to the analysts’ consensus view, this recurring business model is expected to offer long-term earnings visibility and steer margin expansion.
The narrative highlights an expected profit margin climb from 20.9% today to 22.8% in 3 years, underpinned by robust adoption of unified, high-margin offerings.
Analysts connect these gains directly to process automation and faster customer migration to the cloud, challenging concerns that earnings might slip as growth moderates.
What is striking is that despite slower headline revenue growth (forecast at 7.2% per year, versus the US market’s 10.1%), Manhattan’s rapid shift to cloud services is underpinning healthy profit margins and visibility on future earnings. This is a theme that analysts believe could offset near-term sales fluctuations and cyclical challenges. 📊 Read the full Manhattan Associates Consensus Narrative.
Strategic sales initiatives, including global sales leadership changes and deepening partnerships with major platforms like Google Cloud and Shopify, are expected to fuel market share gains and position Manhattan to beat the industry’s projected growth rates for comparable segments.
Analysts’ consensus narrative points out that these efforts, paired with a robust SaaS renewal cycle over the next several years, offer clear catalysts for top-line acceleration.
The upcoming multi-year renewals are driving recurring revenue visibility as well as additional upsell and cross-sell opportunities.
Consensus also emphasizes that Manhattan’s investments in direct sales capacity and product unification are designed to capture underpenetrated verticals like POS and TMS. This supports the idea that market expansion is not just a short-term boost, but a structural shift.
Story Continues
With a current P/E ratio of 54.3x, Manhattan trades at a significant premium to the US software industry average of 36.2x and its peers. However, the stock’s $194.52 share price remains below the DCF fair value of $219.69, suggesting some valuation headroom.
Consensus narrative highlights that while the analyst price target (225.27) represents only a modest 5.4% upside from here, much of the long-term value depends on the company delivering forecasted $1.3 billion revenues and $297.9 million earnings by 2028.
The implied future P/E of 56.5x remains well above industry norms, reinforcing the premium investors place on Manhattan’s durable cloud-model margins and recurring revenue base.
Consensus notes the company’s strong historical growth but cautions that with slower projected gains, the premium may not be justified if margin and market share expansion fall short.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Manhattan Associates on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
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A great starting point for your Manhattan Associates research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
Despite Manhattan Associates’ impressive profit margins, slower revenue growth and questions about sustaining its valuation premium raise concerns about the company’s long-term momentum.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MANH.
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