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Manhattan Associates Reports Third Quarter Results

October 27, 2026 4:05 PM

Cloud Revenue Increased 28% over Prior Year

RPO Increased 25% over Prior Year

ATLANTA--(BUSINESS WIRE)-- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported revenue of $306.2 million for the third quarter ended September 30, 2026, compared to $275.8 million in Q3 2025. GAAP diluted earnings per share for Q3 2026 was $1.04 compared to $0.96 in Q3 2025. Non-GAAP adjusted diluted earnings per share for Q3 2026 was $1.55 compared to $1.36 in Q3 2025.

"Manhattan delivered record Q3 and year-to-date results. On strong demand we posted another record bookings quarter and achieved two milestones. Cloud revenue surpassed services revenue and total quarterly revenue exceeded $300 million,” said Manhattan Associates President and CEO Eric Clark.

“While macroeconomic headwinds persist, Manhattan’s business fundamentals are solid. Powered by market-leading solutions and targeted go-to-market investments, we continue to deliver industry-leading levels of customer success alongside strong financial performance that included acceleration across key metrics in the quarter,” Mr. Clark concluded.

THIRD QUARTER 2026 FINANCIAL SUMMARY:

NINE MONTH 2026 FINANCIAL SUMMARY:

2026 GUIDANCE

Manhattan provides the following revenue, operating margin, and diluted earnings per share guidance for the full year 2026:

Guidance Range - 2026 Full Year

($'s in millions, except operating margin and EPS)

$ Range

% Growth Range

Total revenue

$1,176

$1,178

9%

9%

Operating Margin:

GAAP operating margin

24.1%

24.3%

Equity-based compensation

10.4%

10.4%

Restructuring expense (3)

0.7%

0.7%

Adjusted operating margin(1)

35.2%

35.4%

Diluted earnings per share (EPS):

GAAP EPS

$3.62

$3.64

1%

1%

Equity-based compensation

1.79

1.79

Tax deficiency of stock awards vested (2)

0.03

0.03

Restructuring expense (3)

0.11

0.11

Adjusted EPS(1)

$5.54

$5.56

9%

10%

(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based compensation,

expense related to an unusual health insurance claim, restructuring expense, and the related income tax effects, if applicable.

(2) The tax deficiency (benefit) on stock vesting occurred primarily in the first quarter of 2026.

(3) On June 1, 2026, we reduced our global headcount by approximately 6%, leveraging increased operational efficiencies and allowing us to focus investments on key strategic priorities. We recorded pre-tax restructuring expense in the second quarter of 2026 and exclude the amount from adjusted non-GAAP results.

Manhattan currently intends to make public certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below.

Manhattan will make this earnings release and a recording of the conference call referenced below available on the investor relations section of our website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release or the conference call, including the guidance, should be considered historical only, and Manhattan disclaims any obligation to update them.

CONFERENCE CALL

Manhattan’s conference call regarding its third quarter financial results will be held today, October 27, 2026, at 4:30 p.m. Eastern Time. We also will discuss our business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of our website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software. The Internet webcast will be available until Manhattan Associates’ fourth quarter 2026 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

Manhattan provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share in this press release as additional information regarding our historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. Manhattan believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare our results and guidance, because the measures provide supplemental information in evaluating the operating results of our business, as distinct from results that include items not indicative of ongoing operating results, and because we believe our peers typically publish similar non-GAAP measures. This release should be read in conjunction with Manhattan's Form 8-K earnings release filing for the three and nine months ended September 30, 2026.

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share exclude the impact of equity-based compensation, an expense – net of insurance recoveries, related to an unusual health insurance claim, and restructuring expense – net of income tax effects, collectively. They also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes from the compensation expense recorded for financial reporting purposes. We include reconciliations of Manhattan's GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a global technology leader, providing supply chain and omnichannel commerce solutions with unmatched AI capabilities. We design, build, and offer best-in-class, AI-powered, cloud-based solutions that drive resilience and efficiency for businesses. We enable enterprises to uniquely unify front-end sales with back-end supply chain execution.

Our commitment to innovation, cloud-native platform, and API-first architecture create simpler experiences and faster paths to value for our customers. We empower them to preempt and react to emerging trends and global disruptions with technical expertise and operational confidence, transforming challenges into competitive advantage. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2026 Guidance” and statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate,” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including as a result of global instability due to military conflict, including the military conflict involving the United States, Israel, and Iran, as well as the ongoing war between Russia and Ukraine, disruption and transformation in the retail sector and our vertical markets; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; risks associated with our use of generative and agentic artificial intelligence; and the other risk factors set forth in Item 1A of Manhattan's Annual Report on Form 10-K for the year ended December 31, 2025, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenue:

Cloud subscriptions

$134,438

$104,852

$378,283

$299,580

Software license

3,634

1,356

7,791

12,176

Maintenance

29,229

30,492

90,344

97,693

Services

134,417

133,007

393,181

383,033

Hardware

4,469

6,088

16,597

18,521

Total revenue

306,187

275,795

886,196

811,003

Costs and expenses:

Cost of cloud subscriptions, maintenance and services

131,257

119,604

386,241

349,883

Cost of software license

633

208

1,753

711

Research and development

35,543

36,360

107,654

106,529

Sales and marketing

26,784

18,057

85,235

59,097

General and administrative

29,258

24,078

79,705

74,273

Depreciation and amortization

1,717

1,660

5,182

4,785

Restructuring expense

-

-

8,263

2,937

Total costs and expenses

225,192

199,967

674,033

598,215

Operating income

80,995

75,828

212,163

212,788

Other income, net

1,888

2,604

7,208

4,656

Income before income taxes

82,883

78,432

219,371

217,444

Income tax provision

21,539

19,799

58,380

49,449

Net income

$61,344

$58,633

$160,991

$167,995

Basic earnings per share

$1.05

$0.97

$2.73

$2.77

Diluted earnings per share

$1.04

$0.96

$2.72

$2.75

Weighted average number of shares:

Basic

58,207

60,381

58,880

60,620

Diluted

58,732

60,954

59,250

61,183

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Operating income

$80,995

$75,828

$212,163

$212,788

Equity-based compensation (a)

34,215

27,577

90,095

80,678

Unusual health insurance claim (c)

-

-

-

(658)

Restructuring expense (d)

-

-

8,263

2,937

Adjusted operating income (Non-GAAP)

$115,210

$103,405

$310,521

$295,745

Income tax provision

$21,539

$19,799

$58,380

$49,449

Equity-based compensation (a)

4,245

3,253

12,125

10,749

Tax benefit (deficiency) of stock awards vested (b)

15

321

(2,301)

3,924

Unusual health insurance claim (c)

-

-

-

(159)

Restructuring expense (d)

-

-

2,041

708

Adjusted income tax provision (Non-GAAP)

$25,799

$23,373

$70,245

$64,671

Net income

$61,344

$58,633

$160,991

$167,995

Equity-based compensation (a)

29,970

24,324

77,970

69,929

Tax (benefit) deficiency of stock awards vested (b)

(15)

(321)

2,301

(3,924)

Unusual health insurance claim (c)

-

-

-

(499)

Restructuring expense (d)

-

-

6,222

2,229

Adjusted net income (Non-GAAP)

$91,299

$82,636

$247,484

$235,730

Diluted EPS

$1.04

$0.96

$2.72

$2.75

Equity-based compensation (a)

0.51

0.40

1.32

1.14

Tax deficiency (benefit) of stock awards vested (b)

-

(0.01)

0.04

(0.06)

Unusual health insurance claim (c)

-

-

-

(0.01)

Restructuring expense (d)

-

-

0.11

0.04

Adjusted diluted EPS (Non-GAAP)

$1.55

$1.36

$4.18

$3.85

Fully diluted shares

58,732

60,954

59,250

61,183

a)

Adjusted results exclude all equity-based compensation, as detailed below, to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly because of Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives.

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Cost of services

$12,553

$11,417

$35,118

$33,355

Research and development

7,490

6,216

19,871

17,848

Sales and marketing

3,828

2,267

10,792

5,694

General and administrative

10,344

7,677

24,314

23,781

Total equity-based compensation

$34,215

$27,577

$90,095

$80,678

b)

Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also exclude the related tax benefit (expense) generated upon their vesting.

c)

In the fourth quarter of 2024, we recorded $7.0 million of expense for an unusual health insurance claim. During the first quarter of 2025, we received an insurance recovery of $4.7 million for this claim, partially offset by $1.0 million of ongoing expense for the claim. During the second quarter of 2025, we recorded an additional $3.0 million of expense for this unusual health insurance claim. During the fourth quarter of 2025, we settled the remaining balance of the claim and recorded $6.2 million of benefit as the final payment was much lower than the cost estimates previously provided by our health insurance provider. Based on the uncommonly large magnitude and nature of the claim and timing of related insurance recoveries, we do not believe that this expense reflects our normal operating activities, and we have excluded the amount from adjusted non-GAAP results.

d)

Restructuring expense primarily consists of employee severance and outplacement services. On June 1, 2026, we reduced our global headcount by approximately 6% and recorded pre-tax restructuring expense in the second quarter of 2026 of approximately $8.3 million. In January 2025, we eliminated about 100 positions and recorded pre-tax restructuring expense in the first quarter of 2025 of approximately $2.9 million. We excluded these costs for adjusted non-GAAP results to facilitate period-to-period comparability of operating performance.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

September 30, 2026

December 31, 2025

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

199,449

$

328,747

Accounts receivable, net

268,110

214,679

Prepaid expenses and other current assets

45,340

39,912

Total current assets

512,899

583,338

Property and equipment, net

23,823

23,120

Operating lease right-of-use assets

44,435

50,443

Goodwill, net

62,239

62,244

Deferred income taxes

58,608

75,900

Other assets

48,809

44,343

Total assets

$

750,813

$

839,388

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

22,118

$

22,182

Accrued compensation and benefits

76,739

69,309

Accrued and other liabilities

32,877

26,570

Deferred revenue

348,090

337,049

Income taxes payable

271

803

Total current liabilities

480,095

455,913

Operating lease liabilities, long-term

51,744

56,180

Other non-current liabilities

18,231

12,530

Shareholders' equity:

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2026 and 2025

-

-

Common stock, $0.01 par value; 200,000,000 shares authorized; 58,061,274 and 59,845,291 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively

581

598

Retained earnings

238,568

345,097

Accumulated other comprehensive loss

(38,406

)

(30,930

)

Total shareholders' equity

200,743

314,765

Total liabilities and shareholders' equity

$

750,813

$

839,388

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

Nine Months Ended September 30,

2026

2025

(unaudited)

(unaudited)

Operating activities:

Net income

$

160,991

$

167,995

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

5,182

4,785

Equity-based compensation

90,095

80,678

Gain on disposal of equipment

(162

)

(22

)

Deferred income taxes

16,871

17,946

Unrealized foreign currency loss

1,909

246

Changes in operating assets and liabilities:

Accounts receivable, net

(54,863

)

(8,865

)

Other assets

(13,040

)

(4,311

)

Accounts payable, accrued and other liabilities

16,066

(18,463

)

Income taxes

2,059

(9,840

)

Deferred revenue

18,206

12,271

Net cash provided by operating activities

243,314

242,420

Investing activities:

Purchase of property and equipment

(6,099

)

(10,799

)

Net cash used in investing activities

(6,099

)

(10,799

)

Financing activities:

Repurchase of common stock

(356,929

)

(238,187

)

Net cash used in financing activities

(356,929

)

(238,187

)

Foreign currency impact on cash

(9,584

)

3,891

Net change in cash and cash equivalents

(129,298

)

(2,675

)

Cash and cash equivalents at beginning of period

328,747

266,230

Cash and cash equivalents at end of period

$

199,449

$

263,555

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1. GAAP and adjusted earnings per share by quarter are as follows:

2025

2026

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

GAAP Diluted EPS

$0.85

$0.93

$0.96

$0.86

$3.60

$0.82

$0.85

$1.04

$2.72

Adjustments to GAAP:

Equity-based compensation

0.40

0.35

0.40

0.43

1.57

0.38

0.43

0.51

1.32

Tax (benefit) deficiency of stock awards vested

(0.06)

-

(0.01)

-

(0.06)

0.04

-

-

0.04

Unusual health insurance claim

(0.05)

0.04

-

(0.08)

(0.09)

-

-

-

-

Restructuring expense

0.04

-

-

-

0.04

-

0.11

-

0.11

Adjusted Diluted EPS

$1.19

$1.31

$1.36

$1.21

$5.06

$1.24

$1.39

$1.55

$4.18

Fully Diluted Shares

61,527

61,074

60,954

60,642

61,054

60,038

58,997

58,732

59,250

2. Revenues and operating income by reportable segment are as follows (in thousands):

2025

2026

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Revenue:

Americas

$194,615

$206,606

$206,659

$202,546

$810,426

$214,550

$227,012

$233,165

$674,727

EMEA

55,542

52,301

53,975

53,978

215,796

53,663

55,378

56,916

165,957

APAC

12,630

13,514

15,161

13,865

55,170

14,002

15,404

16,106

45,512

$262,787

$272,421

$275,795

$270,389

$1,081,392

$282,215

$297,794

$306,187

$886,196

GAAP Operating Income:

Americas

$33,862

$48,051

$45,783

$39,875

$167,571

$39,005

$41,336

$49,793

$130,134

EMEA

23,703

19,807

22,877

21,686

88,073

19,670

18,122

23,729

61,521

APAC

5,607

5,930

7,168

5,451

24,156

6,262

6,773

7,473

20,508

$63,172

$73,788

$75,828

$67,012

$279,800

$64,937

$66,231

$80,995

$212,163

Adjustments (pre-tax):

Americas:

Equity-based compensation

$28,826

$24,275

$27,577

$30,585

$111,263

$26,524

$29,356

$34,215

$90,095

Unusual health insurance claim

(3,658)

3,000

-

(6,224)

(6,882)

-

-

-

-

Restructuring expense

2,929

8

-

-

2,937

-

5,637

-

5,637

$28,097

$27,283

$27,577

$24,361

$107,318

$26,524

$34,993

$34,215

$95,732

EMEA:

Restructuring expense

-

-

-

-

-

-

2,346

-

2,346

APAC:

Restructuring expense

-

-

-

-

-

-

280

-

280

Adjusted non-GAAP Operating Income:

Americas

$61,959

$75,334

$73,360

$64,236

$274,889

$65,529

$76,329

$84,008

$225,866

EMEA

23,703

19,807

22,877

21,686

88,073

19,670

20,468

23,729

63,867

APAC

5,607

5,930

7,168

5,451

24,156

6,262

7,053

7,473

20,788

$91,269

$101,071

$103,405

$91,373

$387,118

$91,461

$103,850

$115,210

$310,521

3. Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

2025

2026

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Revenue

$(1,591)

$2,724

$2,652

$3,833

$7,618

$5,975

$2,027

$118

$8,120

Costs and expenses

(1,966)

1,180

738

906

858

2,646

(1,113)

(1,777)

(244)

Operating income

375

1,544

1,914

2,927

6,760

3,329

3,140

1,895

8,364

Foreign currency gains (losses) in other income

131

(65)

1,597

9

1,672

3,229

217

1,130

4,576

$506

$1,479

$3,511

$2,936

$8,432

$6,558

$3,357

$3,025

$12,940

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

2025

2026

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Operating income

$785

$514

$832

$1,409

$3,540

$1,045

$2,235

$1,775

$5,055

Foreign currency gains (losses) in other income

15

140

1,978

742

2,875

3,449

730

1,097

5,276

Total impact of changes in the Indian Rupee

$800

$654

$2,810

$2,151

$6,415

$4,494

$2,965

$2,872

$10,331

4. Other income includes the following components (in thousands):

2025

2026

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Interest income

$1,101

$852

$1,007

$1,429

$4,389

$951

$753

$758

$2,462

Foreign currency gains (losses)

131

(65)

1,597

9

1,672

3,229

217

1,130

4,576

Other non-operating income (expense)

106

(72)

-

(1)

33

157

13

-

170

Total other income (loss)

$1,338

$715

$2,604

$1,437

$6,094

$4,337

$983

$1,888

$7,208

5. Capital expenditures are as follows (in thousands):

2025

2026

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Capital expenditures

$891

$3,980

$5,928

$4,658

$15,457

$4,103

$1,005

$991

$6,099

6. Stock Repurchase Activity (in thousands):

2025

2026

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Shares purchased under publicly-announced buy-back program

539

263

233

416

1,451

1,043

874

245

2,162

Shares withheld for taxes due upon vesting of restricted stock

179

3

8

2

192

198

1

2

201

Total shares purchased

718

266

241

418

1,643

1,241

875

247

2,363

Total cash paid for shares purchased under publicly-announced buy-back program

$100,000

$49,596

$49,947

$74,996

$274,539

$149,983

$125,000

$49,999

$324,982

Total cash paid for shares withheld for taxes due upon vesting of restricted stock

36,447

595

1,602

398

39,042

29,404

105

454

29,963

Total cash paid for excise tax

-

-

-

1,581

1,581

-

1,984

-

1,984

Total cash paid for shares repurchased

$136,447

$50,191

$51,549

$76,975

$315,162

$179,387

$127,089

$50,453

$356,929

7. Remaining Performance Obligations

We disclose revenue that we expect to recognize from our remaining performance obligations ("RPO"). Over 99% of our RPO represents cloud native subscriptions with non-cancelable terms greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts are typically one year and not included in the RPO. Our RPO as of the end of each period appears below (in thousands):

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

June 30, 2026

September 30, 2026

Remaining Performance Obligations

$1,891,384

$2,013,495

$2,076,628

$2,232,234

$2,347,952

$2,473,753

$2,589,654

Michael Bauer

VP, Investor Relations

Manhattan Associates, Inc.

678-597-7538

[email protected]

Devika Goel

Director, Corporate Communications & PR

Manhattan Associates, Inc.

678-597-6754

[email protected]

Source: Manhattan Associates, Inc.

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