A month has gone by since the last earnings report for Manhattan Associates (MANH). Shares have added about 5.8% in that time frame, outperforming the S&P 500. <\/p>\n
Will the recent positive trend continue leading up to its next earnings release, or is Manhattan Associates due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its latest earnings report in order to get a better handle on the important catalysts. <\/p>\n
MANH Q2 Earnings Beat Estimates, Cloud Growth Fuels Revenues <\/p>\n
Manhattan Associates reported second-quarter 2026 non-GAAP adjusted earnings of $1.39 per share, beating the Zacks Consensus Estimate by 6.11% and increasing 6.1% year over year.<\/p>\n
Revenues beat the consensus mark by 3.6% and climbed 9.3% year over year to $297.8 million. Management reported better-than-expected revenues and profitability, accelerating cloud growth and a sharp increase in remaining performance obligations.<\/p>\n
RPO increased to $2.47 billion as of June 30, 2026, compared to $2.35 billion as of March 31, 2026, representing 23% growth year over year. <\/p>\n
MANH’s Q2 Top-Line Details <\/p>\n
Cloud subscription revenues surged 26.2% year over year to $126.7 million. Software license revenues rose 25.9% year over year to $1.9 million, reflecting stronger deal activity within a still small revenue base. Maintenance revenues slipped 12.9% year over year to $30.5 million as customers continued migrating to cloud-native deployments. Services revenues grew 3.2% year over year to $133.0 million. Hardware revenues declined 14.4% year over year to $5.6 million.<\/p>\n
On a geographic basis, Americas revenues grew 9.9% year over year to $227 million. EMEA revenues increased 5.9% year over year to $55.4 million. APAC revenues rose 14% year over year to $15.4 million. <\/p>\n
Operating Details of MANH <\/p>\n
GAAP total costs and expenses rose 16.6% year over year to $231.6 million, driven in part by an $8.3 million restructuring charge tied to the June headcount reduction. GAAP operating income declined 10.2% year over year to $66.2 million. Non-GAAP adjusted operating income increased 2.7% year over year to $103.9 million.<\/p>\n
GAAP net income declined 11.3% year over year to $50.4 million while GAAP EPS fell 8.6% year over year to 85 cents, reflecting the restructuring expense and elevated equity-based compensation costs relative to the year-ago period. Non-GAAP adjusted EPS grew 6.1% year over year to $1.39. <\/p>\n
MANH’s Q2 Balance Sheet & Cash Flow <\/p>\n
Cash flow from operations grew 22.6% year over year to $90.7 million. Days Sales Outstanding improved to 67 days at June 30, 2026 from 72 days at March 31, 2026. Cash totaled $186.1 million at June 30, 2026, down 17.7% from $226.1 million at March 31, 2026, largely reflecting continued share repurchase activity.<\/p>\n
Capital expenditures were $1 million in the second quarter of 2026, down 74.7% year over year from $4 million in the second quarter of 2025. Manhattan Associates ended the quarter with no debt on its balance sheet.<\/p>\n
During the three months ended June 30, 2026, the company repurchased approximately 874,029 shares for a total of $125.0 million. Over the six months ended June 30, 2026, total repurchases reached 1,917,341 shares for $275.0 million. Approximately $225 million remained under the existing March 2026 repurchase authority as of quarter end. <\/p>\n
MANH’s 2026 Guidance <\/p>\n
For full-year 2026, Manhattan Associates raised guidance for total revenues to a range of $1.16 billion to $1.166 billion, implying 7-8% growth. GAAP operating margin guidance is 24.2% to 24.4% while non-GAAP adjusted operating margin is expected at 35-35.2%. GAAP EPS is projected at $3.59-$3.65 while non-GAAP adjusted EPS is guided at $5.44-$5.5, representing 8-9% growth.<\/p>\n
Full-year 2026 cloud revenue guidance was raised, with the midpoint increasing to $505.5 million, implying approximately 24% growth. <\/p>\n
How Have Estimates Been Moving Since Then? <\/p>\n
It turns out, estimates review have trended upward during the past month. <\/p>\n
VGM Scores <\/p>\n
Currently, Manhattan Associates has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy. <\/p>\n
Overall, the stock has an aggregate VGM Score of D. If you aren’t focused on one strategy, this score is the one you should be interested in. <\/p>\n
Outlook <\/p>\n
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Manhattan Associates has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. <\/p>\n
Performance of an Industry Player <\/p>\n
Manhattan Associates belongs to the Zacks Computer – Software industry. Another stock from the same industry, Pegasystems (PEGA), has gained 9.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. <\/p>\n
Pegasystems reported revenues of $420.72 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.35 for the same period compares with $0.28 a year ago. <\/p>\n
Pegasystems is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of +60%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. <\/p>\n
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pegasystems. Also, the stock has a VGM Score of B. <\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a> <\/p>\n Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report<\/a> <\/p>\n Pegasystems Inc. (PEGA) : Free Stock Analysis Report<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n