| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 14 | 60.4x | 17.6x | Bottom tier | |
Growth | 58 | 6.5% | 7.1% | Around median | |
Quality | 96 | 67.2% | 4.5% | Top tier | |
Safety | 78 | — | 2.6x | Top tier | |
Capital Return | 53 | — | 2.15% | Around median | |
Momentum | 80 | -8.7% | 2.3% | Top tier | |
Sentiment | 62 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Manhattan Associates develops cloud software for supply chain and commerce management, with applications spanning warehouse, transportation, order, store, and supply chain planning management. Its model relies on subscriptions to the Manhattan Active platform, alongside implementation services, while legacy license and maintenance revenue declines as customers migrate from on-premises systems to the cloud. The company serves diverse sectors including retail, grocery, food distribution, life sciences, manufacturing, technology, aviation, and third-party logistics.
In Q2 fiscal 2026, revenue increased 9% to $298 million, or 13% excluding the decline in license and maintenance revenue associated with the cloud transition. Cloud revenue reached $127 million, up 26%, and services revenue reached $133 million, up 3%, meaning these two businesses together accounted for approximately 87% of quarterly revenue. EDGAR data shows revenue of $297.8 million and gross profit of $168.3 million, equivalent to a gross margin of approximately 56.5%, as well as net income of $50.4 million and earnings per share of $0.85.
Adjusted operating profit reached $104 million in Q2 fiscal 2026, with a margin of 34.9%, while adjusted earnings per share increased 6% to $1.39. In contrast, GAAP earnings per share declined 9% to $0.85 due to a restructuring expense of approximately $8 million, or $0.11 per share. Operating cash flow increased 22% to $91 million, with a free cash flow margin of 30.1%, and the company ended the quarter with $186 million in liquidity and no debt.
The analyst consensus is Buy, with an average target of $210.57 within a wide range of $145 to $260; the average is below the 52-week range high of $227.03, while the highest target exceeds that high. No usable price-to-earnings ratio is available, so the risk assessment is based on the breadth of the target range and the 52-week range of $119.06 to $227.03, compared with cloud growth of 26%, total revenue growth of 9%, and restructuring pressure on accounting profit.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $298 million in Q2 fiscal 2026, up 9%, while increasing 13% excluding the decline in licenses and maintenance associated with the cloud transition. Cloud revenue grew 26% to $127 million, and services increased 3% to $133 million, driven by implementation and upselling. Adjusted operating profit reached $104 million with a margin of 34.9%, while the company reported adjusted earnings per share of $1.39 and GAAP earnings per share of $0.85.
Migrations from on-premises systems represented more than 40% of new cloud bookings in Q2 fiscal 2026. However, management said on July 28, 2026 that less than 25% of the migration base had begun transitioning and that the substantial increase in quarterly bookings came from less than 2% of the base. The Enterprise and Essentials systems add lower-cost, less complex migration paths, allowing customers to begin with a suitable package and then increase their subscription without rebuilding the platform.
As of the July 28, 2026 call, Active Agents had reached more than 10% of the Manhattan Active base through a trial or subscription, and completed trials achieved a 100% conversion rate to subscriptions. The company offers more than 50 foundational agents, which can be activated on day one, and customers linked their use to an 87% reduction in picking shortages and a 49% reduction in late shipments in cases presented by management. However, their contribution to revenue for the remainder of fiscal 2026 remains small, and the company did not separately disclose their value within revenue or RPO.
Automated analysis for informational purposes only — not investment advice.
In Q2 fiscal 2026, the company introduced three tiers of the same platform: Essentials, Enterprise, and Enterprise Premier. Essentials targets smaller companies and sites at a lower cost than Premier, while Enterprise enables Active Warehouse to be offered to less complex customers who were previously directed to Scale. The partner network supports this expansion, as partner-sourced deals increased fourfold in the first half of fiscal 2026, and the number of newly certified platform consultants doubled.
The company expects revenue of between $1.160 and $1.166 billion in fiscal 2026, equivalent to total growth of 8% and growth of 11% excluding the decline in licenses and maintenance. It expects an adjusted operating margin of approximately 35.1% and adjusted earnings per share of between $5.44 and $5.50, along with cloud revenue of $505.5 million, up 24%. It also expects RPO to be near the upper end of the $2.62 to $2.68 billion range, but reduced its services revenue forecast by $4.5 million to $513.5 million due to currency and the timing of European implementations.
The decline in legacy businesses continues, as the company expects maintenance revenue to fall 12% to approximately $114 million in fiscal 2026, requiring cloud revenue to offset this contraction. It also reduced its services outlook by $4.5 million and expects EMEA services to reach a trough in Q3 fiscal 2026 before growth improves in Q4. In addition, a restructuring expense of approximately $8 million reduced GAAP earnings per share in Q2, while savings from headcount reductions will not appear as incremental margin during fiscal 2026 because of reinvestment and higher bonus accruals.
