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Manhattan Associates (MANH) is back in focus after reporting Q1 2026 results that topped earnings and revenue expectations, driven by cloud subscription growth, stronger AI activity, and a higher full year outlook.
See our latest analysis for Manhattan Associates.
The Q1 beat and raised full year guidance come after a mixed share price pattern, with a 7 day share price return of 6.48% alongside a 90 day share price return of 20.51% and a 1 year total shareholder return of 20.60%, suggesting recent momentum is trying to turn after a tougher stretch.
If this kind of earnings driven move has you thinking about what else is setting up for an AI fueled runway, it is worth scanning 38 AI infrastructure stocks
With the share price down over the past year despite higher guidance, recent earnings strength and AI traction, is Manhattan Associates quietly trading at a discount, or is the market already factoring in its next leg of growth?
With Manhattan Associates closing at $138.32 against a widely followed fair value of $160, the key question is how its cloud and AI story feeds into that gap.
Uncertain macroeconomic and geopolitical conditions could impact revenue growth and net margins by delaying services and shifting customer budgets. The reliance on transitioning to cloud offerings may face challenges, affecting revenue due to longer sales cycles and heightened operational expenses.
Want to see what keeps that $160 fair value intact despite those pressures? The narrative focuses on steady growth, resilient margins, and a punchy future earnings multiple. Curious which assumptions really do the heavy lifting here?
Result: Fair Value of $160 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the risk that macro conditions slow cloud conversions, along with richer assumed future P/E levels, could quickly challenge the idea that Manhattan Associates is 13.6% undervalued.
Find out about the key risks to this Manhattan Associates narrative.
The narrative fair value of $160 paints Manhattan Associates as modestly undervalued, yet the market is already paying a P/E of 37.8x compared with 31.3x for the US Software industry and 23.8x for peers, while the fair ratio sits at 25.9x. That gap points to valuation risk if growth or margins fall short, so how comfortable are you paying that much more than the broader group?
To see how those earnings multiples stack up in more detail, including how the current valuation compares with the fair ratio, take a closer look at the full breakdown, See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:MANH P/E Ratio as at Apr 2026
After weighing the optimism and the risks, the next move is yours. Look through the numbers, pressure test the assumptions, and then check out the 2 key rewards
If Manhattan Associates is on your radar, do not stop there. Broaden your watchlist now so you are not late to the next opportunity.
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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