Start here if you're new
what it is
It sells software that helps companies manage supply chains, inventory, and online orders.
how it gets paid
Last year Manhattan Assoc made $1.1B in revenue. Services was the main engine at $0.56B, or 51% of sales.
why it's growing
Revenue grew 3.7% last year. The quarter was driven by stronger cloud demand and a heavier mix toward subscriptions.
what just happened
$811M of revenue beat, and EPS reached $2.75.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
85/100 earnings predictability — you can trust these numbers
48.8x trailing p/e — you're paying up for this one
74.5% return on capital — a money-printing machine
xvary composite: 62/100 — average
What they do
It sells software that helps companies manage supply chains, inventory, and online orders.
You do not replace inventory software on a whim when 51% of revenue comes from services. Cloud subscriptions are 32% of sales and grew 21%, while services fell 3%. That mix says your daily shipping and stock counts are tied to this system.
How they make money
$1.1B
annual revenue · their business grew +3.7% last year
Services
$0.56B
3%
Cloud subscriptions
$0.35B
+21%
Maintenance
$0.14B
flat
Hardware
$0.03B
flat
Software license
$0.01B
flat
The products that matter
warehouse and supply chain software
Supply Chain Management Software
$675M · 61.4% of sales
This is the engine. At $675M, it drives most of the revenue base, and it sits close to the customer workflow. If this line stays healthy, Manhattan keeps its grip on the account.
core engine
recurring cloud subscriptions
Cloud subscriptions
21% growth
This is the line the market is paying for. Cloud subscriptions grew 21% in the latest quarter. In human-speak: the recurring part is still moving fast enough to defend the premium story.
the number that mattered
implementation and support work
Professional Services
$279M · 25.4% of sales
This business is smaller, but it tells you when projects are stretching out. Services fell 3% in the latest quarter. That does not prove demand is broken. It does prove reported growth still depends on customer timing.
timing tells
Key numbers
$3.90
fy2026 eps est
$2B
fy2028 rev est
48.8x
trailing p/e
n/a
dividend yield
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- net profit margin 22.3% — keeps 22 cents of every dollar in revenue
- return on equity 74% — $0.74 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in MANH 3 years ago → it's now worth $14,160.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
$811M of revenue beat, and EPS reached $2.75.
The quarter was driven by stronger cloud demand and a heavier mix toward subscriptions. Services still slipped 3%, so the split between growth and drag stayed obvious.
$811M
revenue
$2.75
eps
55%
gross margin
the number that mattered
Revenue at $811M mattered most because it showed the business can still grow while services lag.
-
manhattan associates is holding up reasonably well through a tougher market cycle.the company sells software that helps large retailers, distributors, and logistics firms manage fulfillment, and the latest quarter suggests demand is steady even as customers slow new project commitments. in the third quarter of 2025, revenue rose modestly to about $276 million, roughly in line with expectations.
-
the mix was key, as cloud subscription revenue grew 21%, while services fell 3%, to $133 million as implementations were delayed or shifted.profitability was mixed, as gross profit improved on the cloud-subscription mix, but higher selling, general, and administrative costs limited operating profit growth, and a bloated tax bill pushed net income down, leaving earnings per share at $0.96, about a dime under our estimate.
-
growth may stay restrained in 2026 unless deployments accelerate.to outperform, manhattan needs to convert backlog into faster rollouts and broader customer expansions. management is pushing a more proactive cloud conversion program for its on-premise base and a dedicated team aimed at driving add-on sales during renewals.
-
company leadership reiterated a view of roughly 20% cloud revenue growth and a return to services growth in 2026.timing remains a swing factor, as longer implementation schedules can mute reported growth, even if contract demand is solid.
-
a five-year recovery looks compelling.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
Manhattan is being priced like the cloud transition keeps working. If cloud growth slips below the roughly 20% target and services do not recover from the recent 3% drop, the premium multiple loses its main defense.
med
cloud conversion pace
Management is still pointing to roughly 20% cloud revenue growth. That's the promise holding up a 48.8x earnings multiple.
If cloud growth drops below that range for a couple of quarters, the stock stops trading like a clean recurring-revenue story and starts trading like an expensive transition.
med
product concentration
The core supply chain software line is $675M, or 61.4% of total revenue. That's concentration with a tie and a software badge.
If the core line slows, most of the revenue base feels it at once. This is not a portfolio of unrelated bets.
med
implementation delays
Services revenue fell 3% in the latest quarter even while demand commentary stayed decent. Timing, not necessarily order quality, was the issue.
Longer deployment schedules can keep reported revenue and profit softer than the backlog story suggests. The business may be fine while the stock gets impatient.
med
expense pressure
Higher selling and administrative costs limited the operating payoff in the latest quarter.
A 25.0% operating margin is strong. It also means investors notice quickly when cost growth starts nibbling at the edges.
The stock does not need perfection. It does need proof. At 48.8x earnings, Manhattan has room for execution drift, not for a stalled transition.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly print
Watch whether cloud subscription growth stays around 20% and whether services move back above the recent 3% decline. You want both, not just one.
trend
cloud mix
The 21% cloud subscription growth rate is the cleanest signal that the revenue base is getting more recurring and less dependent on project timing.
risk
services recovery
Services were down 3% last quarter. If that line stays negative, customer deployments are still taking longer to convert into reported revenue.
metric
operating margin
A 25.0% operating margin is strong. Keep watching whether higher selling and administrative costs keep diluting the quality of that number.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts do not see a clear short-term edge while the cloud story and the services drag keep arguing with each other.
risk profile
average
Stability score 3 means typical stock risk. You are not hiding here, but you are also not in a chaos trade.
chart momentum
average
Technical score 3 says the chart is behaving normally. No major breakdown. No obvious momentum stampede either.
earnings predictability
85 / 100
Management has usually been consistent. The question is not whether Manhattan can run the business. It is whether the mix shift shows up fast enough to satisfy a premium multiple.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 293 buyers vs. 267 sellers in 3q2025. total institutional holdings: 60.5M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$136
$297
$173
current price
$217
target midpoint · +25% from current · 3-5yr high: $450 (+160% · 27% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive