Manhattan Associates Inc (NASDAQ:MANH) reported fourth-quarter financial results that surpassed analyst expectations, a performance that has been met with a sharp positive reaction in after-hours trading. The supply chain and omnichannel software leader delivered both revenue and profit ahead of consensus estimates, while providing a full-year 2026 outlook that aligns closely with current market expectations.
Earnings and Revenue Versus Estimates
The company’s top and bottom-line results for the quarter ended December 31, 2025, came in stronger than anticipated.
- Revenue: Reported at $270.4 million, a 5.7% increase year-over-year. This figure narrowly exceeded the analyst consensus estimate of approximately $270.8 million.
- Earnings Per Share (Non-GAAP): Came in at $1.21, solidly beating the average analyst estimate of $1.14.
For the full year 2025, Manhattan Associates reported revenue of $1.08 billion, up from $1.04 billion in 2024. Non-GAAP diluted EPS for the year was $5.06, compared to $4.72 in the prior year.
Market Reaction
The market’s immediate response to the earnings beat has been decisively positive. Following the release, the stock surged over 2% in after-hours trading. This move suggests investors are rewarding the company for its ability to exceed profit expectations and maintain steady revenue growth in a competitive enterprise software landscape. The positive price action stands in contrast to the stock’s relatively flat performance over the prior month.
Key Highlights from the Quarter
Beyond the headline numbers, the earnings release underscored several critical elements of Manhattan Associates’ ongoing business transformation and financial health:
- Cloud Momentum: Cloud subscription revenue remains the primary growth driver, jumping 20% year-over-year in Q4 to $108.6 million. For the full year, cloud revenue reached $408.1 million, representing 21% growth.
- Strong Profitability and Cash Flow: The company demonstrated robust operational execution. Adjusted operating income for the quarter was $91.4 million, yielding a healthy adjusted operating margin of 33.8%. Notably, cash flow from operations for Q4 was $147.0 million, a significant increase from $104.7 million in the year-ago period.
- Capital Return to Shareholders: Manhattan Associates continued its aggressive share repurchase program, buying back 415,925 shares for $75 million during the quarter. The Board of Directors subsequently replenished the repurchase authorization by $100 million in January 2026.
- CEO Commentary: President and CEO Eric Clark stated, “Manhattan's business momentum continues to strengthen. We delivered record fourth quarter cloud bookings, and our industry leading solutions are gaining market share.” He also highlighted the recent release of new AI agents as a key initiative for customer success in 2026.
2026 Outlook and Comparison to Estimates
Looking ahead, management provided guidance for the full 2026 fiscal year. The company’s forecast sets a measured but confident tone for the coming year.
- Revenue Guidance: Manhattan Associates expects total revenue between $1.133 billion and $1.153 billion. This range, representing 5% to 7% growth, is centered around the current analyst consensus estimate of approximately $1.171 billion, indicating management’s outlook is slightly more conservative than the street.
- Earnings Guidance: The company anticipates non-GAAP diluted EPS in the range of $5.04 to $5.20. This guidance, which implies roughly flat to 3% growth, brackets the current analyst consensus for the full year.
The provided outlook does not include specific guidance for the first quarter of 2026. For Q1, analysts are currently estimating revenue of approximately $279.6 million.
For a detailed breakdown of historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information presented should not be construed as a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
