Manhattan Associates (MANH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $282.2 million, up 7% year-over-year, driven by strong cloud subscription growth and robust demand across all regions and product lines.

• Cloud revenue grew 24% to $117.1 million, now 41% of total revenue, with over 55% of new bookings from net new customers and continued migration to cloud solutions.

• Adjusted operating profit was $91.5 million (32.4% margin); GAAP operating income was $64.9 million (23.0% margin); adjusted EPS was $1.24 (up 4%), GAAP EPS $0.82 (down 4%).

• Strategic investments in go-to-market and AI-powered Active® Agent solutions are yielding results, with dozens of pilots and early customer successes across industries.

• $150 million was used for share repurchases in Q1 2026; repurchase authority increased to $500 million, with $350 million remaining.

Financial highlights

• Cloud revenue grew 24% year-over-year to $117.1 million; services revenue increased 4% to $126 million; maintenance revenue declined 5%; license revenue dropped 76%.

• Cash flow from operations was $84 million, up from $75.3 million in Q1 2025; free cash flow margin was 28.3%, adjusted EBITDA margin 33.1%.

• Cash and equivalents were $226.1 million at March 31, 2026, down from $328.7 million at year-end 2025, mainly due to share repurchases; no debt outstanding.

• Deferred revenue increased 20% to $356 million; days sales outstanding was 72 days at quarter-end.

• Adjusted net income for Q1 2026 was $74.3 million, up from $73.0 million in Q1 2025.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.147–$1.157 billion (6–7% growth); cloud revenue midpoint increased to $495 million (21% growth); services revenue expected to rise 3% to $518 million.

• Adjusted operating margin midpoint increased to 35%; GAAP operating margin expected at 24.6–24.9%; full-year adjusted EPS range raised to $5.29–$5.37, GAAP EPS $3.55–$3.63.

• RPO targeted at $2.62–$2.68 billion (18–20% growth); tax rate expected at 22%, diluted share count ~60 million.

• Management remains cautious about global macroeconomic and geopolitical risks but expects continued growth driven by cloud adoption and digital transformation.

• No anticipated borrowing needs for 2026; focus remains on product development and share repurchases.