Manhattan Associates Revenue Tops $300 Million as Pulmonx Returns to Growth in Third Quarter
Key Facts
Pulmonx and Manhattan Associates reported on October 27 results for the third quarter ended September 30, 2026, with the former returning to annual revenue growth and the latter exceeding $300 million in quarterly revenue for the first time. Pulmonx reported global revenue of $22.8 million, up 6% from $21.5 million in the same period of 2025. Manhattan Associates reported total revenue of $306.2 million, compared with $275.8 million a year earlier. Chief Executive Officer Eric Clark said cloud revenue exceeded services revenue and the quarter saw a record level of bookings. The results point to two different trajectories: improving revenue and losses at Pulmonx, versus expanding revenue at Manhattan Associates, supported by cloud subscriptions.
Pulmonx growth came from the U.S. and international markets, with U.S. revenue of $14.9 million, up 7% year over year. The company generated $7.9 million in international revenue, up 5% as reported and 6% on a constant-currency basis. Excluding China, international revenue rose 9% on both bases. The company said international growth was affected by the absence of sales to its distributor in China, as it resumes commercial activity in the region following renewal of its Chinese registration certificate. In this context, CEO Glen French said, "We are very pleased to have returned to year-over-year revenue growth in the third quarter."
Pulmonx’s gross margin improved to 76% from 75% in the same period last year, while operating expenses fell to $24.9 million from $30.4 million, a decline of 18%. The company narrowed its net loss to $8.4 million, or $0.19 per share, compared with a loss of $14 million, or $0.34 per share, a year earlier. Adjusted EBITDA loss also declined 57% to $3.5 million, versus $8.2 million in the third quarter of 2025. Cash and cash equivalents totaled $52.7 million on September 30. These figures show an improvement in losses and margin, while the company remained in negative territory on both net income and the adjusted earnings measure.
Pulmonx maintained its fiscal 2026 revenue outlook at a range of $90 million to $92 million and expects gross margin of about 77%. It also expects annual operating expenses of $108 million to $109 million, including about $14 million in non-cash stock-based compensation. The outlook follows quarterly revenue of $22.8 million, with the resumption of commercial activity in China among the factors the company described in its statement. French said the company continues to execute its commercial strategy and clinical initiatives and deliver the expected operating leverage. Pulmonx had scheduled its results call for October 27 at 4:30 p.m. Eastern Time.
At Manhattan Associates, cloud subscription revenue rose to $134.4 million from $104.9 million in the third quarter of 2025. Services revenue, by contrast, was $134.4 million, compared with $133 million a year earlier, showing that cloud revenue grew faster than services revenue changed. Adjusted diluted earnings per share, a non-GAAP measure, was $1.55, versus $1.36 in the comparable period. Clark said the company recorded a record quarter for bookings and that cloud revenue exceeded services revenue, while total quarterly revenue topped $300 million. The company described its business fundamentals as resilient despite continued economic headwinds.
Manhattan Associates’ remaining performance obligations, the value of performance-related commitments, totaled $2.59 billion on September 30, up from $2.47 billion on June 30. On collections, days sales outstanding rose to 81 days from 67 days between the two dates, which the company attributed primarily to increased billing in the final month of the quarter. Cash flow from operations fell to $68.6 million, compared with $93.1 million in the third quarter of 2025, despite cash rising to $199.4 million on September 30 from $186.1 million on June 30. The company repurchased 244,748 shares during the three months ended September 30, for a total investment of $50 million. These figures combine higher remaining obligations and cash with lower operating cash flow and an increase in collection days during the quarter.
Manhattan Associates set its fiscal 2026 revenue outlook at $1,176 million to $1,178 million, and adjusted earnings per share at $5.54 to $5.56. The company said it would provide additional details on its business and its outlook for the year and following quarter during its results call. Both companies announced results on October 27, while the latest available close in EL7 data before the announcements was the October 26 close. At that close, Manhattan Associates shares were priced at $236.4 and Pulmonx shares at $1.95. These prices represent the close on the day before the announcements and do not reflect share movement after the results were published.