Manhattan Associates (MANH)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
$206.10-0.88%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
Warn: Management is running behind on a stated commitment.
Manhattan Associates grows revenue about 7% yearly, hitting $1.15B in 2026. Profit margins stay strong near 25%. Cash from operations rises steadily, supporting growth. AI partnerships boost supply chain software demand.
Profit margin improvement lags, showing limited gains. Cost cuts may signal pressure on growth. Soft guidance risks slowing revenue and earnings growth.
The price sits about 10% below our fair value near $176. Analysts expect about 9% revenue growth, slightly above guidance. Our fair value is below the Street median, reflecting cautious optimism.
Breaks if: No progress or loss of AI partnerships by end of 2026
Breaks if: Cash from operations falls below $75M in next 4 quarters
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and cash generation. The current thesis state is intact, supported by recent earnings beats, though there are concerns about management's ability to enhance operating income.
The market currently prices MANH at a premium compared to its peers, indicating that expectations are somewhat high. The valuation reflects a justified level, but there is a low fragility tier due to weak execution quality.
Fundamentals are likely to show continued revenue growth, as management has prioritized this area and has made progress. However, the mixed results in operating income and the near-term risk of missing estimates could impact overall performance.
The thesis hinges on several factors, including the potential for the Fed to cut rates, which could benefit MANH and other tech companies. Additionally, the performance of sector leaders like SAP, CRM, and NOW will be crucial for maintaining momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Additionally, a new partnership with Boscov's enhances revenue growth through improved fulfillment capabilities. There are no significant threats noted at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Grow operating cash flow to support business investments and shareholder returns.
Stated as a priority in 4 of last 4 quarters. Operating cash flow increased from $74.0 million in 2025-Q2 to $90.7 million in 2026-Q2, demonstrating delivering progress on improving cash generation to support investments and shareholder returns.
“Cash flow from operations was $90.7 million for Q2 2026, compared to $74.0 million for Q2 2025.”
“Cash flow from operations was $84.0 million for Q1 2026, compared to $75.3 million for Q1 2025.”
“Cash flow from operations was $93.1 million for Q3 2025, compared to $62.3 million for Q3 2024.”
“Cash flow from operations increased compared to prior year.”
Breaks if: Operating margin falls below 23% in FY26
Improve operating income and margins through operational efficiencies and cost management despite macro volatility.
Stated as a priority in 4 of last 4 quarters. GAAP operating income declined from $73.8 million in 2025-Q2 to $66.2 million in 2026-Q2, but adjusted operating income rose from $101.1 million to $103.9 million over the same period. Management's focus on operational efficiencies and investments shows mixed delivery with adjusted results improving but GAAP operating income declining.
“GAAP operating income was $66.2M for Q2 2026, compared to $73.8M for Q2 2025.”
“GAAP operating income was $64.9M for Q1 2026, compared to $63.2M for Q1 2025.”
“GAAP operating income was $75.8M for Q3 2025, compared to $75.1M for Q3 2024.”
“Operating income focus continues with cost discipline.”
Breaks if: Revenue falls below $1.07B in FY26
Continue driving revenue growth through strong demand, cloud subscription expansion, and market share gains in supply chain commerce.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $272.4 million in 2025-Q2 to $297.8 million in 2026-Q2, driven by cloud subscription revenue growth from $100.4 million to $126.7 million. Management consistently emphasized accelerating revenue growth and market share gains, and the financials show delivering progress on this priority.
“We posted our third consecutive record bookings quarter and once again accelerated our revenue growth.”
“We accelerated our Q1 revenue growth and delivered better than expected bookings.”
“Solid demand drove cloud revenue growth of 21% and better than expected services revenue generation.”
“Focus on revenue growth and cloud subscription expansion.”
Over the next 1 to 3 years, MANH's performance will depend on management execution and broader market conditions. Not investment advice.