MANH - Manhattan Associates, Inc.

Manhattan Associates develops and sells the Manhattan Active suite of supply chain and omnichannel commerce software, including warehouse management, transportation management, and point-of-sale systems. The company primarily serves large retailers, consumer goods manufacturers, logistics providers, and wholesale distributors under an enterprise SaaS model with subscription and professional services revenue. Manhattan Associates generates approximately $1.0B in annual revenue, with the majority derived from North America but with meaningful operations in Europe and Asia-Pacific.

Past Year Trends

• Cloud subscription revenue grew 21% YoY to $408M in FY2025, with ramped ARR reaching $600M (up 23% YoY), reflecting accelerating migration of on-premise customers to the Manhattan Active platform. (Bullish)
• Remaining Performance Obligations (RPO) surged 25% YoY to $2.2 billion at end of FY2025, driven by competitive win rates exceeding 70% and new-logo bookings representing 14% of Q3 2025 signings, signaling multi-year revenue visibility. (Bullish)
• Professional services revenue faced material headwinds throughout 2025 due to customer budget tightening and implementation delays, contributing to FX-adjusted total revenue growth of only ~3.75% YoY despite strong cloud momentum, compressing services margins. (Bearish)

Next Year Trends

• Morgan Stanley flagged that RPO growth is expected to decelerate from mid-20% to high-teens as early cloud cohort contracts renew at lower incremental values, while legacy maintenance revenue is forecast to decline approximately 19% to ~$105.5M in 2026, creating a ~4.4 percentage-point drag on total revenue growth. (Bearish)
• The January 2026 general availability of Manhattan Agent Foundry and embedded autonomous AI agents across all Manhattan Active solutions positions MANH to up-sell existing cloud customers on higher-tier AI SKUs, with management targeting 21% cloud revenue growth to $492M in FY2026. (Bullish)
• Blue Yonder's announced significant layoffs in March 2026 weakens one of MANH's two primary warehouse management competitors, creating an opportunity for Manhattan Associates to accelerate competitive displacement and capture displaced Blue Yonder pipeline in the near term. (Bullish)

Red Flags

No severe red flags identified as of August 2025.