Manhattan Associates shares jump 11% after hours after forecast raise
Adjusted EPS of $1.55 topped the $1.49 consensus estimate compiled by Finnhub, and revenue of $306.2 million was above the $303 million estimate. Shares rose 11.0% in after-hours trading.
Key takeaways
- Manhattan Associates Inc. (MANH) said on Oct. 27 that third-quarter adjusted earnings per share were $1.55, topping the $1.49 consensus estimate compiled by Finnhub. Revenue was $306.2 million, up from $275.8 million a year earlier. It raised its 2026 adjusted EPS forecast to $5.54 to $5.56 from $5.44 to $5.50.
Manhattan Associates Inc. (MANH) said on Oct. 27 that third-quarter adjusted earnings per share were $1.55, up from $1.36 a year earlier, and it raised its full-year 2026 adjusted EPS forecast.
Shares rose 11.0% in after-hours trading as of 5:07 p.m. ET, from a regular-session close of $233.80.
Adjusted EPS topped the $1.49 per share consensus estimate compiled by Finnhub. Revenue of $306.2 million was above the $303 million consensus estimate from the same source.
The company sells supply chain and omnichannel commerce solutions. It reported nine-month revenue of $886.2 million, according to its press release.
Here's how the company did:
- Adjusted EPS: $1.55 vs. $1.36 a year earlier, against a $1.49 consensus estimate compiled by Finnhub
- GAAP diluted EPS: $1.04 vs. $0.96 a year earlier
- Revenue: $306.2 million vs. $275.8 million a year earlier, against a $303 million consensus estimate compiled by Finnhub
- GAAP operating income: $81.0 million vs. $75.8 million a year earlier
- Adjusted operating income: $115.2 million vs. $103.4 million a year earlier
Cloud subscription revenue was $134.4 million, up from $104.9 million a year earlier. Services revenue was $134.4 million, compared with $133.0 million.
President and CEO Eric Clark said, “While macroeconomic headwinds persist, Manhattan’s business fundamentals are solid.” He also said cloud revenue surpassed services revenue in the quarter.
Cash flow from operations was $68.6 million, down from $93.1 million a year earlier. Days sales outstanding rose to 81 days at Sept. 30 from 67 days at June 30, which the company said was primarily driven by an increase in billing in the last month of the quarter.
Cash totaled $199.4 million at Sept. 30. Remaining performance obligations increased to $2.59 billion from $2.47 billion at June 30.
2026 guidance
The company raised its 2026 forecast for total revenue, adjusted EPS and adjusted operating margin, according to the press release.
| Metric | Previous (July 28) | New (Oct. 27) |
|---|---|---|
| Total revenue | $1,160 million to $1,166 million | $1,176 million to $1,178 million |
| GAAP diluted EPS | $3.59 to $3.65 | $3.62 to $3.64 |
| Adjusted diluted EPS | $5.44 to $5.50 | $5.54 to $5.56 |
| Adjusted operating margin | 35.0% to 35.2% | 35.2% to 35.4% |
The company's previous guidance was issued in its July 28 results release.
Segment results
Americas revenue was $233.2 million, up from $206.7 million a year earlier. EMEA revenue was $56.9 million, compared with $54.0 million. APAC revenue was $16.1 million, up from $15.2 million.
Costs and capital returns
The company cut its global headcount by about 6% on June 1, 2026, and recorded $8.3 million of restructuring expense in the second quarter.
In the third quarter, Manhattan repurchased 244,748 shares for $50.0 million. It bought $325.0 million of stock in the first nine months of 2026. About $175.0 million remained under the authorization the board raised in March 2026 from $100 million to $500 million.
Board appointment and bylaws
The board elected Juan Perez as a Class III director on Oct. 22, the company said in a regulatory filing. His service is expected to begin on Jan. 28, 2027, and the board has not yet set his committee assignments. Perez most recently served as executive vice president and chief information officer at Salesforce, Inc.
The board also approved bylaw amendments effective immediately. They include a 1% ownership threshold for derivative suits and make the Georgia State-wide Business Court the exclusive forum for internal entity claims.