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Manhattan Associates
(NASDAQ:MANH)
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Rating:79Outperform
Price Target:
$234.00
▲(54.28% Upside)
Action:Reiterated
Date:07/30/26
The score is led by strong financial performance (high profitability and excellent free-cash-flow conversion) and a clearly positive technical trend (price above all major moving averages). The main constraint is valuation (high P/E and no dividend yield), while the latest earnings call was constructive with raised guidance but tempered by cloud-transition attrition, some non-recurring cloud upside, and tax-related GAAP EPS pressure.
Positive Factors
Free cash flow conversion
Manhattan’s strong operating and free cash flow conversion is a durable strength. Near one-to-one FCF to net income across years provides persistent self-funding for R&D, go-to-market, services scale and shareholder returns, reducing reliance on external financing and improving strategic optionality.
Negative Factors
Legacy revenue attrition
The structural migration from on‑premise maintenance/licenses to cloud creates a persistent near-term headwind to legacy recurring revenue. A ~17% maintenance decline compresses legacy cashflows and creates a dependency on cloud upsells to replace lapsed maintenance, pressuring short-term growth pacing.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow conversion
Manhattan’s strong operating and free cash flow conversion is a durable strength. Near one-to-one FCF to net income across years provides persistent self-funding for R&D, go-to-market, services scale and shareholder returns, reducing reliance on external financing and improving strategic optionality.
Read all positive factors
Manhattan Associates Key Performance Indicators (KPIs)
Any
Revenue By Geography
Breaks down sales by region to show which markets drive growth and where the company is most dependent on local demand. Reveals geographic concentration risk, international expansion progress, and where product adoption or market share gains are occurring, helping assess future growth potential and exposure to regional economic cycles or currency swings.
Breaks down sales by region to show which markets drive growth and where the company is most dependent on local demand. Reveals geographic concentration risk, international expansion progress, and where product adoption or market share gains are occurring, helping assess future growth potential and exposure to regional economic cycles or currency swings.
Data provided by:
The Fly
The FlyManhattan Associates (MANH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.38B
Dividend YieldN/A
Average Volume (3M)668.02K
Price to Earnings (P/E)54.7
Beta (1Y)1.26
Revenue Growth6.48%
EPS Growth-3.07%
CountryUS
Employees4,100
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)3.52
Shares Outstanding58,304,974
10 Day Avg. Volume694,950
30 Day Avg. Volume668,021
Financial Highlights & Ratios
PEG Ratio21.19
Price to Book (P/B)33.30
Price to Sales (P/S)9.69
P/FCF Ratio28.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$207.43Price Target Upside36.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)5.48
Revenue Forecast (FY)$1.16B
Manhattan Associates Business Overview & Revenue Model
Company Description
Manhattan Associates, Inc. develops comprehensive software solutions to manage and optimize supply chains, inventory, and omni-channel operations. Their product portfolio features Manhattan SCALE, a suite of logistics execution tools covering aspe...
How the Company Makes Money
Manhattan Associates makes money primarily by selling its supply chain and omnichannel commerce software and by providing related services.
1) Software subscriptions (cloud/SaaS): A core revenue stream comes from customers paying recurring fees t...
Manhattan Associates Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: accelerating cloud revenue (24% growth), a 24% increase in RPO to $2.35B, improved adjusted margins, raised full-year guidance, strong new-logo momentum including the largest-ever OMS booking, and promising early AI/agent customer outcomes. Offsets include GAAP EPS pressure from higher taxes, expected attrition of maintenance/license revenue as customers migrate to cloud (maintenance down ~17%), some nonrecurring cloud overage upside in Q1, and continued macro/FX uncertainty. Overall, management emphasized conservative modeling for the remainder of 2026 while highlighting durable wins and investments that underpin longer-term growth.Positive Updates
Total Revenue Beat and Growth
Total revenue of $282 million, up 7% year-over-year; excluding license and maintenance (cloud transition compression), revenue was up 13%.
Negative Updates
GAAP EPS Decline and Tax Impact
GAAP EPS was $0.82, down 4% year-over-year, adversely impacted by higher-than-expected tax expense driven by decreased stock-based compensation benefits.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Revenue Beat and Growth
Total revenue of $282 million, up 7% year-over-year; excluding license and maintenance (cloud transition compression), revenue was up 13%.
Read all positive updates
Company Guidance
Manhattan raised its 2026 outlook, targeting RPO of $2.62–$2.68 billion (18–20% growth) and total revenue of $1.147–$1.157 billion (midpoint $1.152B; ~11% growth ex‑license/maintenance attrition, ~7% all‑in) with a ~1 point FX tailwind; cloud revenue midpoint was increased to $495M (21% growth) with quarterly cloud targets of $121.5M (Q2), $126M (Q3) and $130.5M (Q4); services revenue is expected to rise 3% to $518M (Q2 $131.5M, Q3 $137M, Q4 $124M); maintenance is expected to decline ~17% to ~$108M (Q2 $27M, Q3 $25.5M, Q4 $25M), license ~ $1M/quarter and hardware $6–6.5M/quarter; adjusted operating margin midpoint was raised to 35% (Q2 ~34.7%, Q3 ~36.9%, Q4 ~36.1%, including a 100 bps headwind from license/maintenance attrition), adjusted EPS guidance of $5.29–$5.37 (Q2 $1.30, Q3 $1.43, Q4 $1.36), GAAP EPS midpoint of ~$3.59 (Q2 GAAP $0.86), tax rate ~22% and diluted share count of ~60M (assumes no buybacks).Manhattan Associates Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
91
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.13B | 1.08B | 1.04B | 928.73M | 767.08M | 663.64M |
| Gross Profit | 615.45M | 602.74M | 565.07M | 492.36M | 402.18M | 357.90M |
| EBITDA | 290.03M | 292.21M | 273.12M | 219.42M | 164.78M | 141.99M |
| Net Income | 210.23M | 219.95M | 218.36M | 176.57M | 128.96M | 110.47M |
Balance Sheet | ||||||
| Total Assets | 698.65M | 839.39M | 757.55M | 673.35M | 570.18M | 539.71M |
| Cash, Cash Equivalents and Short-Term Investments | 186.11M | 328.75M | 266.23M | 270.74M | 225.46M | 263.71M |
| Total Debt | 53.88M | 112.36M | 47.79M | 17.69M | 14.06M | 23.16M |
| Total Liabilities | 541.14M | 524.62M | 458.43M | 395.07M | 343.38M | 289.06M |
| Stockholders Equity | 157.51M | 314.76M | 299.13M | 278.28M | 226.80M | 250.64M |
Cash Flow | ||||||
| Free Cash Flow | 399.19M | 374.01M | 286.33M | 241.49M | 173.04M | 181.17M |
| Operating Cash Flow | 414.88M | 389.47M | 295.00M | 246.22M | 179.63M | 185.18M |
| Investing Cash Flow | -15.69M | -15.46M | -8.68M | -4.73M | -6.59M | -4.02M |
| Financing Cash Flow | -435.00M | -315.16M | -286.37M | -196.05M | -204.46M | -120.42M |
Manhattan Associates Technical Analysis
Positive
151.67
Price Trends
158.14
Positive
147.06
Positive
155.40
Positive
Market Momentum
11.58
Negative
64.62
Neutral
54.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MANH, the sentiment is Positive. The current price of 151.67 is below the 20-day moving average (MA) of 177.55, below the 50-day MA of 158.14, and below the 200-day MA of 155.40, indicating a bullish trend. The MACD of 11.58 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 54.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MANH.
Manhattan Associates Risk Analysis
Manhattan Associates disclosed 42 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.38B | 54.72 | 85.23% | ― | 6.48% | -3.07% | |
77 Outperform | $7.94B | 21.77 | 37.43% | ― | 17.26% | ― | |
73 Outperform | $14.71B | 91.58 | 10.99% | ― | 24.92% | 356.37% | |
72 Outperform | $11.01B | 38.84 | 24.10% | 0.89% | 12.85% | 14.73% | |
72 Outperform | $3.70B | 36.72 | 10.69% | ― | 24.21% | 206.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MANH
Manhattan Associates
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-27.56
-12.52%
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MNDY
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85.95
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Manhattan Associates Corporate Events
Business Operations and StrategyFinancial Disclosures
Manhattan Associates Announces Workforce Reduction and Restructuring Plan
Negative
Jun 1, 2026
On June 1, 2026, Manhattan Associates, Inc. began implementing plans to cut its global workforce by about 6%, citing gains in operational efficiency and a desire to redirect spending toward key strategic priorities. The company expects to record l...
Business Operations and StrategyShareholder Meetings
Manhattan Associates Shareholders Approve Expanded Equity Incentive Plan
Positive
May 20, 2026
On March 20, 2026, Manhattan Associates’ board adopted the first amendment to its 2020 Equity Incentive Plan, and shareholders approved it at the annual meeting on May 14, 2026, signaling investor support for expanded equity-based compensati...
Executive/Board ChangesShareholder Meetings
Manhattan Associates Shareholders Approve Directors and Governance Measures
Positive
May 18, 2026
At its annual meeting of shareholders held in Atlanta, Georgia, on May 14, 2026, Manhattan Associates reported a turnout of approximately 94% of eligible common stock, with 55,764,873 shares represented in person or by proxy. Shareholders 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.