MANH Q2 Earnings Beat Estimates, Cloud Growth Fuels Revenues

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.

MANH's Q2 Top-Line Details

Cloud subscription revenues surged 26.19% year over year to $126.7 million. Software license revenues rose 25.85% year over year to $1.9 million, reflecting stronger deal activity within a still small revenue base. Maintenance revenues slipped 12.93% year over year to $30.5 million as customers continued migrating to cloud native deployments. Services revenues grew 3.22% year over year to $133.0 million. Hardware revenues declined 14.37% year over year to $5.6 million.

On a geographic basis, Americas revenues grew 9.88% year over year to $227 million. EMEA revenues increased 5.88% year over year to $55.4 million. APAC revenues rose 13.99% year over year to $15.4 million.

Operating Details of MANH

GAAP total costs and expenses rose 16.58% 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 10.24% year over year to $66.2 million. Non-GAAP adjusted operating income increased 2.75% year over year to $103.9 million.

GAAP net income declined 11.32% year over year to $50.4 million while GAAP diluted 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 diluted EPS grew 6.11% year over year to $1.39.

MANH's Q2 Balance Sheet & Cash Flow

Cash flow from operations grew 22.57% 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 17.69% from $226.1 million at March 31, 2026, largely reflecting continued share repurchase activity.

Capital expenditures were $1 million in the second quarter of 2026, down 74.75% year over year from $4 million in the second quarter of 2025. Manhattan Associates ended the quarter with no debt on its balance sheet.

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.

MANH's 2026 Guidance

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.

Full-year 2026 cloud revenue guidance was raised, with the midpoint increasing to $505.5 million, implying approximately 24% growth.

Zacks Rank & Stocks to Consider

MANH currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Applied Materials AMAT and Cisco Systems CSCO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Analog Devices have rallied 34.8% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 59.4% year over year.

Shares of Applied Materials have skyrocketed 85.4% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 4 cents over the past 30 days, indicating a rise of 28.9% year over year.

Cisco Systems shares have surged 50% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year.

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