Manhattan Associates (MANH) Q3 2026 Earnings Call: Cloud Growth and Raised Guidance

Manhattan Associates reported total revenue of $306 million for the third quarter of 2026, up 11% year on year. Cloud revenue reached $134 million, while RPO rose to $2.590 billion, with both increasing significantly year on year and sequentially. Broader adoption of Active AI and the launch of the new Editions packages drove orders, while new customer wins and partner-sourced opportunities also increased sharply. Against this backdrop, management raised its full-year outlook for revenue and EPS, among other metrics.

Approximately 35% of new cloud orders came from new customers, and the win rate remained above 70%. Partner-sourced opportunities have increased more than fourfold year to date. The launch of Editions provides three offerings: Essentials, Enterprise, and Enterprise Premier, which are expected to accelerate revenue recognition and promote cross-selling. The fixed-price migration program supporting the transition from on-premises to the cloud also progressed.

Key financial data included adjusted operating income of $115 million, adjusted EPS of $1.55, and GAAP EPS of $1.04, confirming an improvement in margins. Cash was approximately $199 million at quarter-end, short-term deferred revenue was $348 million, and the free cash flow margin was 22.1%. Share repurchases reached a record level year to date.

For guidance, the company indicated full-year 2026 total revenue of $1.176 billion to $1.178 billion, RPO growth of 21% year on year, an adjusted operating margin of approximately 35.3%, and adjusted EPS of $5.54 to $5.56. Fourth-quarter revenue is expected to be approximately $291 million, including cloud revenue of $136 million and services revenue of $122 million, with adjusted EPS of $1.38. For 2027, management indicated, among other things, 20% growth in cloud revenue, but formal guidance is scheduled to be provided at the fourth-quarter earnings call.