Manhattan Associates delivered a fourth quarter that exceeded Wall Street’s expectations, driven by robust cloud revenue growth and a resurgence in its services segment. Management attributed the strong finish to increased adoption of its cloud-based supply chain solutions, accelerated customer migrations, and expansion into new verticals beyond retail. CEO Eric Clark highlighted the company’s ability to secure both new customers and expansions from existing clients, noting that “more than 75% of our new cloud bookings were generated from net new logos.” The introduction of AI-powered features and streamlined implementation processes also contributed to improved customer outcomes and higher overall bookings.
Is now the time to buy MANH? Find out in our full research report (it’s free for active Edge members).
Manhattan Associates (MANH) Q4 CY2025 Highlights:
- Revenue: $270.4 million vs analyst estimates of $264.7 million (5.7% year-on-year growth, 2.2% beat)
- Adjusted EPS: $1.21 vs analyst estimates of $1.13 (6.7% beat)
- Adjusted Operating Income: $91.37 million vs analyst estimates of $87.06 million (33.8% margin, 5% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $5.12 at the midpoint, missing analyst estimates by 3.6%
- Operating Margin: 24.8%, up from 23.7% in the same quarter last year
- Billings: $310.2 million at quarter end, up 8.8% year on year
- Market Capitalization: $9.02 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Manhattan Associates’s Q4 Earnings Call
- Terry Tillman (Truist Securities): Asked about progress on cloud migrations and faster renewals. CEO Eric Clark pointed to early pipeline success, increased services headcount, and faster fixed-fee implementations as evidence of momentum.
- Brian Peterson (Raymond James): Questioned what drove strong RPO growth and deal mix. Clark explained diverse product and deal types contributed, with new metrics like ramped ARR introduced for added disclosure.
- George Kurosawa (Citi): Sought clarity on renewal rates and conservatism in guidance. Clark cited a preference for shorter renewal durations, allowing more frequent pricing adjustments and flexibility.
- Parker Lane (Stifel): Probed the monetization strategy for AI agents. Clark detailed a low-risk pilot program, with pricing structured as an uplift to existing contracts, aiming for easy adoption and future conversion.
- Christopher Quintero (Morgan Stanley): Inquired about services growth rates and implementation backlogs. Clark described the services business as domain-specific with mid-single-digit growth expectations, supported by ongoing rollouts and fixed-fee programs.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the pace of adoption and monetization for Manhattan Associates’ new AI agent offerings, (2) progress on migrating legacy customers to cloud-based solutions and the resulting effect on recurring revenue, and (3) the impact of expanded services and sales investments on both customer acquisition and margin trends. Execution in cross-selling and pipeline conversion will also be closely monitored.
Manhattan Associates currently trades at $150.57, down from $169.73 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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