Highlights

  • Second quarter 2026 revenue rose 9% to $297.8 million, while GAAP diluted earnings per share fell to $0.85 from $0.93.
  • Cloud subscriptions revenue grew 26% to $126.7 million, and remaining performance obligations reached about $2.5 billion, up 23%.
  • A June 1 workforce reduction of about 6% resulted in $8.3 million of pretax restructuring expense for the company.
  • The company repurchased about $275.0 million of stock in six months and held $186.1 million of cash with no debt.

Manhattan Associates, Inc. (NASDAQ:MANH) shares were trading near their 52-week high at USD 235.44 on October 21, 2026, a gain of 1.11%. The supply chain software maker raised its share repurchase authority to $500 million in March, cut about 6% of its workforce on June 1, and filed its second quarter 2026 report on July 31.

Based in Atlanta, Georgia, Manhattan Associates is a Georgia corporation that develops, sells and services software to manage supply chains, inventory and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers and government agencies. It earns revenue from cloud subscriptions, software licenses, maintenance, professional services and hardware, and reports three geographic segments: the Americas, Europe, the Middle East and Africa, and Asia Pacific. It employed approximately 4,100 people at June 30, 2026, and its fiscal year ends December 31.

Cloud Growth Offsets Weaker Profit

Revenue for the three months ended June 30, 2026 was $297.8 million, up from $272.4 million a year earlier. Cloud subscriptions, now 42% of revenue, grew 26% to $126.7 million, with all three segments expanding. Services revenue rose 3% to $133.0 million. Maintenance, which relates to legacy perpetual licenses, fell to $30.5 million from $35.1 million, and the company expects it to decline as customers move to the cloud. Hardware revenue slipped to $5.6 million from $6.5 million.

Profit moved the other way. Operating income fell to $66.2 million from $73.8 million, and GAAP net income was $50.4 million against $56.8 million. Diluted earnings per share were $0.85 versus $0.93. Total costs and expenses rose to $231.6 million from $198.6 million, with sales and marketing up to $30.7 million from $20.0 million and the restructuring charge adding $8.3 million. A lower diluted share count, 59.0 million against 61.1 million, partly cushioned the per-share result.

For six months, revenue was $580.0 million, up 8%, and GAAP net income was $99.6 million, or $1.67 per diluted share, compared with $109.4 million, or $1.78. International revenue made up 34% of the total.

Restructuring, Cash and Share Repurchases

On June 1, 2026, the company reduced its global headcount by about 6%, saying the move reflected operating efficiencies and would let it concentrate investment on key strategic priorities. The $8.3 million pretax charge, or $6.2 million after tax ($0.10 per diluted share), consisted mainly of severance and outplacement costs, and $4.2 million had been paid by quarter end.

Operating cash flow was $90.7 million for the quarter and $174.7 million for six months, compared with $149.3 million a year earlier. Cash and cash equivalents were $186.1 million, of which $110.8 million sat with foreign subsidiaries, and the company had no debt and no credit facilities. Financing outflows of $306.5 million went to buying back common stock, including $29.5 million of shares withheld for taxes. Manhattan repurchased approximately $275.0 million under its program in the half, and about $225.0 million of the $500 million authority raised in March remained at June 30.

Cloud infrastructure commitments total roughly $177.7 million over four years, which management expects to fund from working capital.

Management Priorities and Outlook

The report contains no numeric guidance. Management said its first-half 2026 results exceeded its expectations on solid demand for cloud solutions, while it stayed cautious about the global economy, including conflicts involving the United States, Israel and Iran and the war between Russia and Ukraine. It also said sales cycles for large cloud subscriptions could lengthen.

For the rest of 2026, the company named five strategic goals, including customer success, innovation, and expanding its Manhattan Active cloud suite and cloud subscription revenue. Its first use of cash is expected to be investment in its omnichannel, digital supply chain and Manhattan Active Agents solutions, followed by growth investments and share repurchases. It does not anticipate borrowing for general corporate purposes in 2026. These are management expectations, not commitments.