Key Highlights

  • Manhattan Associates reported third quarter total revenue of USD 306 million, up 11% year over year and above expectations.
  • Cloud revenue grew 28% to USD 134 million, reaching parity with services revenue for the first time.
  • Non-GAAP earnings per share were USD 1.55, up 14% from USD 1.36 in the same period of 2025.
  • The company raised full year 2026 revenue guidance to a midpoint of USD 1.177 billion and non-GAAP EPS guidance to USD 5.54 to USD 5.56.

Cloud Revenue Reaches Milestone Parity With Services

Manhattan Associates (NASDAQ:MANH) reported third quarter total revenue of USD 306 million, up 11% year over year and exceeding company expectations. Cloud revenue grew 28% to USD 134 million, while services revenue grew 1% to USD 134 million, marking the first quarter in which cloud revenue reached parity with services revenue.

Non-GAAP earnings per share were USD 1.55, up 14% from USD 1.36 a year earlier, while GAAP earnings per share were USD 1.04, up 8%. Non-GAAP operating margin was 37.6%, with cloud revenue growth offsetting higher go-to-market investments and bonus accruals during the quarter.

Record Bookings Drive Backlog Growth

Remaining performance obligations reached USD 2.59 billion, up 25% year over year and 5% sequentially, marking the company's fourth consecutive quarter of record bookings. Next 24-month RPO represented 40% of total RPO, up from 39% in the prior quarter, reflecting faster deployment cycles and strong deal volume.

New logos represented about 35% of new cloud bookings, with a win rate consistently above 70%. The company's newly launched Additions tiered pricing model, consisting of Essentials, Enterprise and Enterprise Premier tiers, contributed to deal activity during the quarter, extending the company's platform to a wider range of customer sizes.

Raised Guidance and Preliminary 2027 Outlook

The company raised full year 2026 RPO growth guidance to 21%, up from a prior range of 18% to 20%, and increased revenue guidance to a midpoint of USD 1.177 billion, representing 9% total growth for the year. Non-GAAP earnings per share guidance was raised to a range of USD 5.54 to USD 5.56, with fourth quarter revenue targeted at approximately USD 291 million, including cloud revenue of approximately USD 136 million.

Management provided preliminary 2027 guidance anticipating 20% cloud revenue growth and low single digit services revenue growth, alongside continued operating margin expansion. Share repurchases totaled USD 50 million in the quarter, bringing year-to-date buybacks to a record USD 325 million.

Bookings and Guidance Metrics to Track

RPO growth relative to the raised 21% full year guidance, continued cloud revenue growth relative to the 28% increase reported this quarter, and progress toward the preliminary 2027 outlook of 20% cloud revenue growth are among the items the company has flagged for investors. The pace of Additions tiered pricing adoption, along with continued new logo wins at the roughly 35% share reported this quarter, remain early indicators of broader platform expansion across customer segments.