MANH · Manhattan Associates, Inc.

Manhattan Associates began 2026 with accelerating revenue growth, reporting Q1 total revenue of $282.2 million, a 7.4% increase year-over-year. The growth was primarily driven by a 24% surge in cloud subscription revenue to $117.1 million, offsetting a significant decline in license revenue which fell to $2.2 million from $9.3 million in the prior year. This shift underscores the company's ongoing transition toward a recurring revenue model. GAAP operating income grew modestly to $64.9 million, while Non-GAAP adjusted operating income remained relatively flat at $91.5 million. GAAP net income declined to $49.3 million from $52.6 million, largely due to a higher income tax provision, though adjusted net income improved to $74.3 million.

Operationally, the company generated $84.0 million in cash flow from operations, up from $75.3 million in the prior year. Remaining Performance Obligations (RPO) increased to $2.35 billion, signaling strong future revenue visibility. CEO Eric Clark cited solid demand and better-than-expected bookings, expressing optimism regarding long-term growth despite persistent macro volatility.

Capital allocation activity was notable during the quarter. The company repurchased 1.04 million shares for $150 million. In March 2026, the Board increased the share repurchase authorization from $100 million to $500 million, with approximately $350 million remaining under the authorization at quarter-end. Management guided for full-year 2026 revenue between $1.147 billion and $1.157 billion, representing 6-7% growth, with non-GAAP diluted EPS expected in the range of $5.29 to $5.37.