Manhattan Associates (MANH) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 and first half results, with 26% cloud revenue growth and three consecutive quarters of record bookings, driven by strong demand for cloud and services despite global macro volatility.

• Strategic investments in sales, marketing, and AI capabilities are expanding the addressable market and driving momentum.

• Launched Editions packaging for Manhattan Active Solutions, offering three tiers to serve a broader customer base.

• AI offerings, particularly ActiveAgents, are delivering measurable operational value and accelerating customer adoption.

• Operating income declined 10% to $66.2 million due to restructuring and higher sales and marketing expenses.

Financial highlights

• Q2 2026 total revenue was $298 million, up 9% year-over-year; cloud revenue rose 26% to $127 million; service revenue increased 3% to $133 million.

• Adjusted operating profit was $104 million with a 34.9% margin; adjusted EPS was $1.39, up 6%; GAAP EPS was $0.85, down 9% due to $8.3 million restructuring expense.

• RPO ended at $2.47 billion, up 23% year-over-year and 5% sequentially.

• Operating cash flow increased 22% to $91 million; free cash flow margin was 30.1%.

• Deferred revenue grew 14% to $343 million; $186 million in cash and zero debt.

Outlook and guidance

• Full-year 2026 total revenue guidance raised to $1.16–$1.166 billion (7–8% growth); cloud revenue midpoint increased to $505.5 million, representing 24% growth.

• Adjusted operating margin guidance raised to 35.1% for the year; GAAP operating margin expected at 24.2–24.4%.

• Adjusted EPS range increased to $5.44–$5.50; GAAP EPS guidance: $3.59–$3.65.

• RPO expected at high end of $2.62–$2.68 billion target (18–20% growth).

• FX expected to be a 1-point headwind in the second half.