Highlights

  • Second quarter 2026 revenue was $297.8 million, cloud subscriptions revenue was $126.7 million and diluted EPS was $0.85.
  • Operating income was $66.2 million for the second quarter, compared with $73.8 million in the second quarter of 2025.
  • The Board increased share repurchase authority from $100 million to $500 million, and $225.0 million remained at June 30, 2026.
  • On its October 27, 2026 call, management targeted full-year 2026 total revenue of $1.176 billion to $1.178 billion.

Manhattan Associates, Inc. (NASDAQ:MANH) shares were trading at USD 244.24 on October 28, 2026, up 4.38%, with a relative volume at time of 3.20. The supply chain software company filed its Form 10-Q for the quarter ended June 30, 2026 on July 31, 2026, and management held its third quarter earnings call on October 27, 2026.

Manhattan Associates is incorporated in Georgia and lists its principal executive offices in Atlanta, Georgia. The company develops, sells, deploys, services and maintains software solutions designed to manage supply chains, inventory and omnichannel operations. Its revenue comes from cloud subscriptions, software licenses, maintenance, services and hardware, and it has offices in Australia, Germany, India, Japan and the United Kingdom. It reports three geographic segments: the Americas, EMEA and APAC. At June 30, 2026, the company employed approximately 4,100 employees worldwide.

Second Quarter 2026 Results

The 10-Q covers the quarter ended June 30, 2026. Revenue was $297,794 thousand, compared with $272,421 thousand in the second quarter of 2025. Cloud subscriptions revenue was $126,722 thousand, compared with $100,422 thousand. Services revenue was $133,047 thousand, maintenance revenue was $30,523 thousand and hardware revenue was $5,579 thousand.

Operating income was $66,231 thousand, compared with $73,788 thousand, and operating margin was 22.2%, compared with 27.1%. Net income was $50,352 thousand, or $0.85 per diluted share, compared with $56,780 thousand, or $0.93 per diluted share.

For the six months ended June 30, 2026, revenue was $580,009 thousand and net income was $99,647 thousand, or $1.67 per diluted share, compared with $535,208 thousand and $109,362 thousand, or $1.78 per diluted share. Remaining performance obligations were approximately $2.5 billion at June 30, 2026.

Balance Sheet, Cash Flow and Capital

Cash was $186.1 million at June 30, 2026, compared with $226.1 million at March 31, 2026. Cash flow from operations was $90.7 million in the second quarter and $174.7 million for the six months, compared with $149.3 million. The company funded its business exclusively through cash generated from operations in the first six months and does not anticipate borrowing requirements for the remainder of 2026.

In the second quarter, the company repurchased approximately 0.9 million shares for a total of $125.0 million. In March 2026, the Board increased the share repurchase authority from $100 million to $500 million, and approximately $225.0 million remained at the end of the quarter. Cloud infrastructure obligations were approximately $177.7 million over the next four years.

The filing states that sales cycles for large cloud subscriptions could be extended and that macroeconomic uncertainty and geopolitical conflicts may affect customer decisions on timing of capital expenditures.

Third Quarter Call Commentary

On the October 27, 2026 call, management said third quarter cloud revenue was $134 million, remaining performance obligation was $2.59 billion and total revenue was $306 million. It reported non-GAAP EPS of $1.55 and GAAP EPS of $1.04. Management said it repurchased $50 million of shares in the quarter and had $175 million remaining under the authority announced in March.

2026 Outlook

On the call, management said it expects full-year 2026 total revenue of $1.176 billion to $1.178 billion, with a midpoint of $1.177 billion. It increased its remaining performance obligation outlook to 21% year-over-year growth, from a prior range of 18% to 20%. It expects full-year adjusted EPS of $5.54 to $5.56 and an adjusted operating margin midpoint of 35.3%.

For the fourth quarter, management is targeting total revenue of about $291 million, including cloud revenue of $136 million, services revenue of $122 million, maintenance revenue of $26 million and hardware revenue of $6 million. It is targeting fourth quarter adjusted EPS of $1.38 and GAAP EPS of $0.92.

For 2027, management gave preliminary commentary that includes 20% cloud revenue growth and low single digit services revenue growth. It said it intends to provide initial annual guidance on its fourth quarter call.