Manhattan Associates Reports $282.2 Million Revenue in Q1 2026, Cloud Subscription Revenue Up 24%

Manhattan Associates, Inc. reported a total revenue of $282.2 million for the first quarter of 2026, marking a 7% increase from $262.8 million in the same period of 2025. The company's cloud subscription revenue was a significant contributor, reaching $117.1 million, which represents a 24% year-over-year increase. However, software license revenue saw a substantial decline of 76%, falling to $2.2 million from $9.3 million in the previous year. The overall operating income for the quarter was $64.9 million, slightly up from $63.2 million, resulting in an operating margin of 23.0%, down from 24.0% a year earlier.

In terms of profitability, Manhattan Associates reported a net income of $49.3 million for the first quarter of 2026, compared to $52.6 million in the same quarter of 2025. The diluted earnings per share decreased to $0.82 from $0.85. The company attributed the decline in net income to increased operating expenses, particularly in sales and marketing, which rose by 32% to $27.8 million. The effective tax rate also increased to 28.8% from 18.5%, primarily due to a decrease in stock-based compensation benefits.

Operationally, Manhattan Associates experienced a notable increase in its customer base, with approximately 58% of new non-cancelable cloud subscriptions signed in the first quarter coming from new customers. The company employed around 4,390 employees globally as of March 31, 2026, and reported cash and cash equivalents of $226.1 million, down from $328.7 million at the end of 2025. The company also repurchased approximately 1.0 million shares of its common stock during the quarter, totaling an investment of $150 million.

Looking ahead, Manhattan Associates remains optimistic about its growth trajectory, driven by strong demand for its cloud solutions. The company plans to continue investing in innovation and expanding its cloud offerings, with a focus on customer success and long-term sustainable growth. The management highlighted that approximately $2.3 billion in remaining performance obligations is expected to be recognized as revenue in future periods, indicating a solid backlog of contracted business. Despite macroeconomic uncertainties, the company believes its strategic investments will position it well for continued success in the evolving supply chain management market.