{"id":114738,"date":"2026-01-28T05:22:26","date_gmt":"2026-01-28T05:22:26","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/114738\/"},"modified":"2026-01-28T05:22:26","modified_gmt":"2026-01-28T05:22:26","slug":"strong-cloud-growth-and","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/114738\/","title":{"rendered":"Strong Cloud Growth and …"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>.<\/p>\n

Revenue: Q4 revenue increased 6% to $270 million; full year revenue totaled $1.08 billion, up 4%.<\/p>\n

Cloud Revenue: Q4 cloud revenue totaled $109 million, up 20%; full year cloud revenue increased 21% to $408 million.<\/p>\n

RPO (Remaining Performance Obligations): Increased 25% to $2.2 billion.<\/p>\n

Adjusted Earnings Per Share: Q4 adjusted EPS increased to $1.21; full year adjusted EPS increased 7% to $5.06.<\/p>\n

Operating Margin: Q4 adjusted operating margin was 33.8%; full year adjusted operating margin was 35.8%.<\/p>\n

Free Cash Flow Margin: Q4 free cash flow margin was 52.7%; full year free cash flow margin was 34.6%.<\/p>\n

Cash and Debt: Ended the year with $329 million in cash and zero debt.<\/p>\n

Share Repurchases: Invested $75 million in share repurchases in Q4; $275 million in buybacks for 2025.<\/p>\n

2026 Revenue Guidance: Full year revenue expected to be $1.133 billion to $1.153 billion, representing 10% growth excluding license and maintenance attrition.<\/p>\n

2026 Cloud Revenue Guidance: Expected to increase 21% to $492 million.<\/p>\n

2026 Adjusted EPS Guidance: Range of $5.04 to $5.20.<\/p>\n

Release Date: January 27, 2026<\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n

Manhattan Associates Inc (NASDAQ:MANH<\/a>) achieved record cloud bookings in Q4 2025, contributing to a 25% increase in RPO to $2.2 billion.<\/p>\n

The company reported a 20% growth in cloud revenue for Q4, with total revenue increasing by 6% to $270 million.<\/p>\n

Manhattan Associates Inc (NASDAQ:MANH<\/a>) introduced new AI capabilities, including the commercial availability of AI agents and the Agent Foundry, which are expected to drive productivity and customer satisfaction.<\/p>\n

The company made strategic hires and reorganized its sales and marketing teams, which contributed to improved sales execution and market share gains.<\/p>\n

Manhattan Associates Inc (NASDAQ:MANH<\/a>) has a strong pipeline across diverse verticals, including retail, grocery, life sciences, and technology, indicating potential for continued growth in 2026.<\/p>\n

The global macro environment remains turbulent, posing risks to Manhattan Associates Inc (NASDAQ:MANH<\/a>)’s future performance.<\/p>\n

The company faces a 4-point headwind to total revenue growth in 2026 due to maintenance and license attrition.<\/p>\n

Manhattan Associates Inc (NASDAQ:MANH<\/a>) experienced a customer liquidation headwind of $1.3 million in Q4, impacting cloud revenue.<\/p>\n

The company anticipates a higher tax rate due to changes in US tax law, which could affect cash flow.<\/p>\n

Services revenue, although returning to growth, has historically been a line item with lower visibility, posing challenges in forecasting.<\/p>\n

Story Continues <\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Revenue: Q4 revenue increased 6% to $270 million; full year revenue totaled…\n","protected":false},"author":2,"featured_media":114739,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[7750,75,9238,84,83,9,24,63,9244,9243,9247],"class_list":{"0":"post-114738","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-manhattan","8":"tag-free-cash-flow","9":"tag-manhattan","10":"tag-manhattan-associates-inc","11":"tag-manhattan-headlines","12":"tag-manhattan-news","13":"tag-new-york","14":"tag-new-york-city","15":"tag-nyc","16":"tag-operating-margin","17":"tag-share-repurchases","18":"tag-total-revenue"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/114738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=114738"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/114738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/114739"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=114738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=114738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=114738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}