Manhattan Cloud Subscriptions Nearly Match Services in Q3

The Tip Desk · November 8, 2026 · 2 min read

Third-quarter revenue reached $306.2 million as cloud subscriptions hit $134.4 million, and full-year 2026 sales guidance moved to $1,176 million to $1,178 million.

Manhattan Associates, Inc. (MANH), the supply chain and omnichannel commerce software provider, reported third-quarter revenue of $306.2 million, up from $275.8 million a year earlier, as cloud subscription revenue reached $134.4 million and matched services revenue at the same level.

The company said cloud revenue had increased 28% from the year-ago quarter, when cloud subscriptions were $104.9 million. Services revenue was $134.4 million, compared with $133.0 million a year earlier. President and CEO Eric Clark said cloud revenue surpassed services revenue and that total quarterly revenue exceeded $300 million, citing record third-quarter and year-to-date results and another record bookings quarter.

GAAP diluted earnings were $1.04 a share, compared with $0.96 a year earlier. Adjusted diluted earnings, a non-GAAP measure, were $1.55 a share, compared with $1.36. GAAP operating income was $81.0 million, versus $75.8 million a year earlier. Adjusted operating income was $115.2 million, versus $103.4 million.

Clark said macroeconomic headwinds persist and that the company’s business fundamentals are solid, pointing to market-leading solutions and targeted go-to-market investments. He said the company continued to deliver industry-leading levels of customer success and that key metrics accelerated in the quarter.

Cash flow from operations was $68.6 million, down from $93.1 million a year earlier. Days sales outstanding were 81 days at September 30, 2026, compared with 67 days at June 30, 2026, 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 September 30, 2026. Remaining performance obligations increased to $2.59 billion from $2.47 billion at June 30, 2026.

During the three months ended September 30, 2026, Manhattan repurchased 244,748 shares for $50.0 million. In March 2026 the board increased share-repurchase authority from $100 million to $500 million; about $175.0 million remained under that authority at quarter-end.

On June 1, 2026, the company reduced global headcount by about 6% and recorded $8.3 million of pre-tax restructuring expense in the second quarter of 2026, which it excluded from adjusted results.

Manhattan raised full-year 2026 revenue guidance to $1,176 million to $1,178 million, or 9% growth, from a prior range of $1,147 million to $1,157 million, or 6% to 7% growth. GAAP operating margin guidance is 24.1% to 24.3%. Adjusted operating margin guidance is 35.2% to 35.4%. GAAP diluted EPS guidance is $3.62 to $3.64, or 1% growth. Adjusted diluted EPS guidance is $5.54 to $5.56, or 9% to 10% growth.

The company said it will make the earnings release and a recording of the conference call available on its investor relations website.