Manhattan Associates (MANH)
NASDAQ:MANH
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Manhattan Associates
(NASDAQ:MANH)
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Rating:73Outperform
Price Target:
$151.00
▲(4.09% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Manhattan Associates (MANH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.94B
Dividend YieldN/A
Average Volume (3M)754.37K
Price to Earnings (P/E)47.6
Beta (1Y)1.24
Revenue Growth4.10%
EPS Growth-0.21%
CountryUS
Employees4,690
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.21
Shares Outstanding59,847,550
10 Day Avg. Volume649,731
30 Day Avg. Volume754,367
Financial Highlights & Ratios
PEG Ratio21.20
Price to Book (P/B)33.30
Price to Sales (P/S)9.69
P/FCF Ratio28.02
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue7.07
Enterprise Value/Gross Profit12.66
Enterprise Value/Ebitda26.03
Forecast
1Y Price Target
$214.80Price Target Upside48.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)5.21
Revenue Forecast (FY)$1.15B
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 t...
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 cont...
Manhattan Associates Key Performance Indicators (KPIs)
Manhattan Associates Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Manhattan Associates delivered record cloud bookings, strong RPO growth (+25%), improving visibility via a new ramped ARR metric (+23%), healthy cloud revenue growth (+21% FY), strong cash generation, and commercial launches of AI agents with promising early feedback. Negatives were manageable: material maintenance attrition (-19% guidance), services remain only modestly growing after a FY decline, some lumpiness from large deals, and a small customer liquidation headwind. Management provided constructive 2026 guidance (RPO +18–20%, cloud +21%) while investing in sales, services, and AI commercialization.Positive Updates
Record cloud bookings and RPO growth
RPO increased 25% year-over-year to $2.2 billion and the company reported record cloud bookings in Q4, driven by strong new-logo momentum and >70% competitive win rates.
Negative Updates
Maintenance and license attrition headwind
License and maintenance attrition expected to be a ~4.4 percentage-point headwind to total revenue growth in 2026; maintenance revenue projected to decline ~19% to $105.5 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Record cloud bookings and RPO growth
RPO increased 25% year-over-year to $2.2 billion and the company reported record cloud bookings in Q4, driven by strong new-logo momentum and >70% competitive win rates.
Read all positive updates
Company Guidance
Manhattan guided 2026 RPO of $2.62–$2.68 billion (up 18%–20% YoY) with renewals expected to contribute 18%–20% of bookings, and total revenue of $1.133–$1.153 billion (midpoint $1.143B; +10% excluding license/maintenance attrition, +6% all‑in) with Q1 revenue $272–$274M. They expect cloud revenue up 21% to $492M (Q1 $114M, Q2 $121.5M, Q3 $126M, Q4 $130.5M), services up 3% to $517M (Q1 $124M, Q2 $131.5M, Q3 $137M, Q4 $124M), maintenance down 19% to $105.5M (Q1 $28M, Q2 $27M, Q3 $25.5M, Q4 $25M), license ~$1M/quarter and hardware $6–$6.5M/quarter, with license/maintenance attrition a ~4.4% headwind to revenue. Full‑year adjusted operating margin is guided to 34.5%–35% (mid ~34.75%, ~75 bps expansion ex‑attrition) and adjusted EPS $5.04–$5.20 (GAAP $3.37–$3.53); Q1 adjusted EPS $1.08–$1.10 (GAAP $0.64–$0.66). Quarterly midpoint adjusted margin commentary pegged around ~31% with specific midpoints cited of Q1 34.7%, Q2 36.9% and Q4 36.1%; they expect an effective tax rate of 22%, diluted share count of ~61M (no buybacks assumed), and noted onboarding ~100 services hires in January to support growth.Manhattan Associates Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
74
Positive
Cash Flow
90
Very Positive
| 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
Negative
145.07
Price Trends
149.12
Negative
162.16
Negative
183.97
Negative
Market Momentum
-2.97
Positive
38.07
Neutral
13.29
Positive
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 141.52, below the 50-day MA of 149.12, and below the 200-day MA of 183.97, indicating a bearish trend. The MACD of -2.97 indicates Positive momentum. The RSI at 38.07 is Neutral, neither overbought nor oversold. The STOCH value of 13.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MANH.
Manhattan Associates Risk Analysis
Manhattan Associates disclosed 41 risk factors in its most recent earnings report. Manhattan Associates reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Manhattan Associates Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.94B | 47.65 | 76.65% | ― | 4.10% | -0.21% | |
72 Outperform | $13.28B | 49.66 | 12.92% | ― | 22.80% | 198.93% | |
70 Outperform | $11.58B | 51.21 | 23.93% | 0.72% | 11.12% | -26.24% | |
67 Neutral | $3.83B | 63.93 | 9.88% | ― | 28.62% | 186.67% | |
63 Neutral | $5.47B | 224.68 | -9.44% | ― | 16.98% | -265.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MANH
Manhattan Associates
130.53
-44.29
-25.33%
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MNDY
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Manhattan Associates Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Manhattan Associates Announces CFO Retirement and Successor Appointment
Positive
Feb 26, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.