Manhattan Associates Reports Strong Q4 Cloud Growth, but Issues Mixed 2026 EPS Guidance
Summary
Manhattan Associates reported strong Q4 and full-year 2025 results, with significant cloud subscription and RPO growth, but provided mixed 2026 guidance including a projected decline in GAAP EPS.
Key Events
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Strong Q4 and Full-Year 2025 Performance
Reported Q4 2025 revenue of $270.4 million (up from $255.8M in Q4 2024) and full-year 2025 revenue of $1,081.4 million (up from $1,042.4M in FY 2024). GAAP diluted EPS for Q4 2025 was $0.86 (up from $0.77 in Q4 2024) and $3.60 for full-year 2025 (up from $3.51 in FY 2024).
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Significant Cloud and RPO Growth
Cloud subscription revenue for Q4 2025 increased to $108.6 million from $90.3 million in Q4 2024. Remaining Performance Obligations (RPO) bookings increased 25% over the prior year, reaching $2.23 billion by December 31, 2025.
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Mixed 2026 Guidance
Provided 2026 full-year revenue guidance of $1,133 million to $1,153 million (5-7% growth). However, GAAP diluted EPS guidance is projected at $3.37 to $3.53 (-6% to -2% growth), while adjusted diluted EPS guidance is $5.04 to $5.20 (0-3% growth).
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Active Share Repurchase Program
The company repurchased $75.0 million of common stock in Q4 2025 and $274.5 million for the full year 2025. The Board of Directors replenished the share repurchase authority by an aggregate of $100.0 million in January 2026.
Analysis
Manhattan Associates delivered robust fourth-quarter and full-year 2025 results, driven by significant growth in cloud subscription revenue and a 25% increase in Remaining Performance Obligations (RPO) bookings. This indicates strong underlying demand for its supply chain and omnichannel commerce solutions. However, the company's 2026 guidance presents a mixed outlook, with projected revenue growth of 5-7% but a negative GAAP diluted EPS growth of -6% to -2%, and only modest adjusted diluted EPS growth of 0-3%. This divergence suggests potential headwinds or increased investments impacting profitability, despite continued top-line expansion. The replenishment of the share repurchase program signals ongoing commitment to shareholder returns.
At the time of this filing, MANH was trading at $169.73 on NASDAQ in the Technology sector, with a market capitalization of approximately $10.2B. The 52-week trading range was $140.81 to $299.27. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.