Manhattan Associates (MANH) AI Stock Analysis

• Market Cap: $8.11B
• Dividend Yield: N/A
• Average Volume (3M): 952.46K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 1.31
• Revenue Growth: 4.10%
• EPS Growth: -0.21%
• Country: US
• Employees: 4,690
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.21
• Shares Outstanding: 59,847,550
• 10 Day Avg. Volume: 677,269
• 30 Day Avg. Volume: 952,456
• PEG Ratio: 21.20
• Price to Book (P/B): 33.30
• Price to Sales (P/S): 9.69
• P/FCF Ratio: 28.02
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 7.35
• Enterprise Value/Gross Profit: 13.15
• Enterprise Value/Ebitda: 27.04
• 1Y Price Target: $215.00
• Price Target Upside: 48.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.21
• Revenue Forecast (FY): $1.15B

• Rating: 73 Outperform
• Price Target: $151.00 ▲(4.09% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

Overall score reflects strong financial performance (high margins and excellent cash generation) and constructive 2026 guidance, offset by notably weak technicals (price below major moving averages with negative momentum) and a premium valuation (P/E ~37.6).

Positive Factors

Strong cash generation

Manhattan's very strong cash conversion (FCF nearly equals net income and large year-over-year FCF growth) provides durable internal funding for product investment, M&A or buybacks, reducing reliance on external capital and supporting long-term strategic flexibility.

Recurring cloud revenue and RPO growth

Growing cloud RPO and a disclosed ramped ARR improve revenue visibility and demonstrate durable subscription expansion. High new-logo momentum and >70% competitive win rates signal sustainable market penetration and stronger recurring revenue predictability over the medium term.

High margins and operating leverage

Consistently high gross and operating margins reflect scalable SaaS economics and strong pricing power. Operating leverage supports durable profitability as cloud revenue grows, enabling continued investment in R&D and go-to-market while preserving cash generation over multiple years.

Negative Factors

Maintenance and license attrition

Material attrition in maintenance and licenses erodes a core recurring revenue component, forcing higher new sales to offset it. Sustained attrition could compress revenue growth and complicate margin expansion if replacement economics are weaker than legacy recurring streams.

Services revenue pressure & predictability

Services are less predictable and historically declined, which increases overall revenue volatility and makes margin and cash forecasts harder. Scaling services profitably requires hiring and fixation on execution; persistent underperformance would weigh on blended margins and cash conversion.

Higher leverage after 2025 debt increase

A meaningful increase in debt raises financial risk and reduces balance-sheet flexibility. Given a relatively small equity base and very high ROE, results become more sensitive to profit swings; higher leverage constrains capital allocation choices during downturns or if growth investments require funding.

Manhattan Associates Business Overview & Revenue Model

Company Description

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations. It offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services; and Manhattan Active, a set of enterprise and store omni-channel solutions. The company also provides inventory optimization, planning, and allocation solutions; maintenance services comprising customer support services and software enhancements; professional services, such as solutions planning and implementation, and related consulting services; and training and change management services. In addition, it resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. The company offers products through direct sales personnel, as well as through partnership agreements with various organizations. It serves grocery, food and beverage, manufacturing, medical and pharmaceutical, retail, third-party logistics, and wholesale industries. The company operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Manhattan Associates generates revenue primarily through the sale of software licenses, subscription fees, and professional services. The company offers its software solutions on a subscription basis, providing a recurring revenue stream that contributes to consistent earnings. Key revenue streams include software licensing fees for on-premise deployments, SaaS (Software as a Service) subscriptions for cloud-based solutions, and revenue from consulting services that assist clients in implementing and optimizing their systems. Additionally, the company benefits from maintenance and support services that ensure ongoing client satisfaction and system performance. Strategic partnerships with major technology firms and integration with various supply chain platforms further enhance its market presence and revenue potential.

Manhattan Associates Financial Statement Overview

Summary

Strong and improving fundamentals: revenue expanded materially to $1.08B in 2025 with high profitability (~20% net margin) and improving gross/operating margins. Cash generation is a standout with operating cash flow up to $389M and free cash flow $374M, showing excellent cash conversion. Main offsets are the 2025 leverage uptick noted in the balance sheet analysis and a small net-margin dip versus 2024.

Income Statement

Revenue has expanded strongly over the period (up from $586M in 2020 to $1.08B in 2025), with growth accelerating meaningfully in the latest year (2025 revenue growth 136.7% vs. 12.2% in 2024). Profitability is consistently high and improving: gross margin rose to 55.7% (2025) from ~54.2% (2024), operating margin improved to 26.4% from 25.1%, and net margin remains robust around ~20% (20.3% in 2025). The main watch item is that net margin dipped slightly versus 2024 (20.3% vs. 20.9%), suggesting some incremental costs or mix effects despite stronger operating performance.

Balance Sheet

The balance sheet is generally solid with growing equity ($315M in 2025 vs. $219M in 2020) and moderate leverage overall. However, debt stepped up sharply in 2025 ($112M vs. $48M in 2024), pushing debt relative to equity higher (0.36 vs. 0.16). Returns on equity are exceptionally high (roughly 57%–73% over 2022–2025), which is a strength, but also indicates the company is generating very high profits on a relatively small equity base—making results more sensitive to changes in profitability and capital structure.

Cash Flow

Cash generation is a standout: operating cash flow increased to $389M in 2025 from $141M in 2020, and free cash flow rose to $374M from $138M. Free cash flow closely tracks earnings (free cash flow to net income ~0.96–0.98 across the years), signaling strong cash conversion and earnings quality. Free cash flow growth is strong in the most recent year (12.25 in 2025) after being relatively modest in 2024 (0.19). One concern is that operating cash flow has not consistently exceeded free cash flow (operating cash flow coverage ratio below 1.0 each year), which may indicate favorable working-capital timing or lower reinvestment in certain periods—worth monitoring for sustainability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.08B	1.04B	928.73M	767.08M	663.64M
Gross Profit	602.74M	565.07M	492.36M	402.18M	357.90M
EBITDA	292.21M	267.90M	215.63M	159.36M	142.25M
Net Income	219.95M	218.36M	176.57M	128.96M	110.47M
Balance Sheet
Total Assets	839.39M	757.55M	673.35M	570.18M	539.71M
Cash, Cash Equivalents and Short-Term Investments	328.75M	266.23M	270.74M	225.46M	263.71M
Total Debt	112.36M	47.79M	17.69M	14.06M	23.16M
Total Liabilities	524.62M	458.43M	395.07M	343.38M	289.06M
Stockholders Equity	314.76M	299.13M	278.28M	226.80M	250.64M
Cash Flow
Free Cash Flow	374.01M	286.33M	241.49M	173.04M	181.17M
Operating Cash Flow	389.47M	295.00M	246.22M	179.63M	185.18M
Investing Cash Flow	-15.46M	-8.68M	-4.73M	-6.59M	-4.02M
Financing Cash Flow	-315.16M	-286.37M	-196.05M	-204.46M	-120.42M

Manhattan Associates Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 145.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MANH, the sentiment is Negative. The current price of 145.07 is above the 20-day moving average (MA) of 141.21, below the 50-day MA of 159.84, and below the 200-day MA of 188.03, indicating a bearish trend. The MACD of -6.98 indicates Negative momentum. The RSI at 38.44 is Neutral, neither overbought nor oversold. The STOCH value of 40.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MANH.

Manhattan Associates Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANH	73 Outperform	$8.11B	37.59	71.66%	―	4.10%	-0.21%
BSY	70 Outperform	$11.07B	42.79	24.92%	0.72%	11.12%	-26.24%
MNDY	67 Neutral	$3.69B	32.42	10.43%	―	28.62%	186.67%
GWRE	65 Neutral	$12.35B	137.81	6.57%	―	22.80%	198.93%
ESTC	63 Neutral	$5.49B	-65.40	-10.24%	―	16.98%	-265.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Manhattan Associates Corporate Events

Manhattan Associates Announces CFO Retirement and Successor Appointment

On February 26, 2026, Manhattan Associates Inc. announced that longtime Executive Vice President and Chief Financial Officer Dennis B. Story will retire from his CFO and Treasurer roles at the close of business on March 31, 2026. The board elected veteran finance executive Linda C. Pinne, currently Senior Vice President, Global Corporate Controller and Chief Accounting Officer, to succeed him as Senior Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer, effective on the same transition date.

Story, who has served as CFO since March 2006 and spent 20 years with the company, will remain employed as Advisor to the Chief Executive Officer through December 31, 2026 to ensure a gradual transition of his responsibilities. During his tenure, Manhattan’s revenue rose about 275%, operating cash flow about 785% and market capitalization more than 50-fold, underscoring his role in supporting the company’s transformation into an AI-native platform business.

To govern the transition, Manhattan entered into a Retirement and Advisory Agreement under which Story will continue to receive his current base salary while serving as advisor and will be eligible for a first-quarter 2026 performance cash bonus but no further cash bonuses thereafter. His unvested restricted stock units will continue to vest during his advisory term, with remaining unvested awards vesting at his retirement date, subject to specific treatment for performance-based units and standard conditions around termination, death or disability.

The Retirement Agreement replaces his prior executive employment agreement for most purposes but carries forward key provisions such as intellectual property, confidentiality and restrictive covenants, and includes customary releases and non-disparagement terms. The company also agreed to pay up to 12 months of COBRA premiums after his retirement or earlier termination, while retaining the right to end benefits if he leaves early under certain circumstances.

CEO Eric Clark publicly praised Story’s contributions in a February 26, 2026 press release and highlighted his influence on Manhattan’s growth strategy and global finance organization. Clark also emphasized Pinne’s deep knowledge of Manhattan’s operations, customers and strategy, signaling continuity in financial leadership and a focus on sustaining the company’s leadership in the supply chain commerce market.

Pinne, a more than 20-year finance veteran at Manhattan who has led global corporate controller and accounting functions since 2016, has been central to strengthening financial processes and controls and supporting growth. Her elevation to CFO, along with Manhattan’s reaffirmation of its 2026 financial guidance and planned participation in upcoming investor conferences, is likely to reassure investors about stability in the finance function during the leadership transition.

The most recent analyst rating on (MANH) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on Manhattan Associates stock, see the MANH Stock Forecast page.