What happened According to a Securities and Exchange Commission (SEC) filing dated Feb. 17, 2026, Brown Capital Management sold 232,073 shares of Manhattan Associates (NASDAQ:MANH) during the fourth quarter of 2025. The estimated transaction value was $42.42 million, based on the average closing price for the period. At quarter’s end, the position’s reported value fell by $53.51 million, reflecting both the share sale and stock price movement. What else to know The sale reduced the stake to 2.67% of rep ...

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Manhattan Associates, Inc. (NASDAQ:MANH) is among the best money-making stocks to buy right now. On January 28, Raymond James reduced the price target on Manhattan Associates, Inc. (NASDAQ:MANH) to $230 from $240 and maintained an Outperform rating. This downward adjustment in price target came after the company’s Q4 2025 results, which the firm believes demonstrated “impressive bookings momentum and execution” under the leadership of CEO Eric Clark. In its analysis, Raymond James noted the company’s rec ...

Cloud Solutions and Technology - Manhattan Associates offers cloud-based supply chain solutions, with a focus on subscription-based software as a service (SaaS) that ensures all customers run on a single, fully up-to-date codebase[14]. - The Manhattan Active Platform is built on Google Cloud Platform, providing "always current" versionless access and enabling customers to benefit from regular software updates[24]. - The company is investing in AI technology, focusing on Agentic AI advancements to enhance supply chain execution and planning applications, with plans to expand into generative AI[30]. - The company’s Transportation Management Solution (TMS) helps shippers navigate complex transportation demands while minimizing freight costs, featuring procurement and modeling tools[20]. - Manhattan Active Supply Chain Planning unifies demand forecasting, replenishment, and allocation into a real-time planning solution, improving inventory management across products and locations[22]. - The company’s Warehouse Management solutions are recognized as industry-leading, optimizing productivity and throughput in distribution centers globally[15]. - Manhattan Active Omni provides a unified commerce application that integrates Order Management, Store Inventory & Fulfillment, and Customer Engagement tools, enhancing omnichannel capabilities[19]. - The company’s solutions are designed to interoperate with existing systems, allowing customers to leverage their current resources while adopting new technologies[26]. - Manhattan Active Warehouse Management (MAWM) is delivered as a cloud-based application, providing state-of-the-art fulfillment optimization technology and a consumer-grade mobile app experience[20]. Financial Performance - Total revenue for 2025 was $1,081.4 million, with cloud subscriptions accounting for 38% of total revenue[180]. - Cloud revenue increased from $337.2 million in 2024 to $408.1 million in 2025, representing a 21% year-over-year growth[192]. - Remaining Performance Obligations (RPO) reached approximately $2.2 billion, a 25% increase over the previous year, indicating strong demand[194]. - Maintenance revenue totaled $130.0 million, representing 12% of total revenue, with expectations of decline as cloud offerings expand[198]. - Services revenue amounted to $503.0 million, or 47% of total revenue, with significant contributions from the Americas, EMEA, and APAC segments[200]. - Consolidated revenue for 2025 was $1,081.4 million, a 3.3% increase from $1,042.4 million in 2024[211]. - Operating income for 2025 was $279.8 million, compared to $261.6 million in 2024, reflecting an increase of 6.5%[211]. - Operating margins improved to 25.9% in 2025, up from 25.1% in 2024[211]. - Cash flow from operations was $389.5 million in 2025, an increase from $295.0 million in 2024[211]. - Cash and investments totaled $328.7 million at December 31, 2025, compared to $266.2 million at the end of 2024[211]. - R&D expenses for 2025 were $145.1 million, up from $137.7 million in 2024[206]. Customer and Market Strategy - The company focuses on enhancing its Supply Chain, Omnichannel Commerce, and Supply Chain Planning Solutions, aiming to provide the broadest and most feature-rich software portfolio in the marketplace[39]. - The sales cycle typically requires nine to twelve months, beginning with lead generation through various marketing efforts[44]. - The company utilizes multi-channel global marketing programs to reach new prospects and expand relationships with current customers, including digital marketing and industry events[43]. - The company plans to expand its international presence, leveraging relationships with U.S. and Europe-based customers that have significant international operations[40]. - The company evaluates strategic acquisition opportunities to enhance and expand its offerings, targeting technologies and businesses that complement its existing solutions[42]. Employee and Workplace Culture - The company employs approximately 2,600 employees in its international operations as of December 31, 2025[56]. - The company has a hybrid work model to ensure employee health and safety during the Covid-19 pandemic[60]. - The workforce is highly educated and diverse, contributing to the company's innovation in supply chain and omnichannel commerce software[61]. - The company employs a robust in-house recruiting program to attract diverse talent, including individuals with disabilities and veterans[62]. - Competitive compensation and benefits programs are provided to attract and retain employees[63]. - Employee engagement is assessed through periodic surveys, with no work stoppages reported globally[64]. - The company offers a full day each year for employees to give back to their communities through the Manhattan Purpose™ day[65]. - The performance management program, MPOWER™, empowers employees to drive their career development[66]. - Various well-being programs are provided, including free virtual mental health counseling and gym access[67]. Risks and Challenges - The company faces competition from various ERP and supply chain management vendors, which may have more resources and larger customer bases[53]. - The company faces regulatory risks due to proposed legislation governing AI tools, which may affect business operations and efficiency[1][86]. - Lengthy sales cycles, particularly with larger customers, typically extend from nine to twelve months, impacting revenue predictability[2][88]. - The company recognizes revenue from cloud subscriptions over the term of the subscription, which may delay the impact of new business on financial results[3][98]. - Significant investments in research and development are anticipated, but returns from these activities are uncertain[4][101]. - The company competes in an intensely competitive market, with potential pricing pressure from competitors leading to reduced margins[5][95]. - Disruption in the retail market, driven by digital commerce, may lead to delayed purchase decisions from traditional retailers[6][93]. - The company may experience significant costs and operational disruptions due to potential intellectual property claims, which could negatively impact financial results[116]. - The use of open source software in products may expose the company to risks that could harm its intellectual property and financial condition[119]. - International operations present risks including compliance with foreign laws and potential adverse tax treatment, which could affect business performance[128]. - Fluctuations in foreign currency values could materially impact revenues and operating profits, particularly due to operations in multiple currencies[129]. - The company’s stock price has been highly volatile, influenced by various factors including macroeconomic conditions and quarterly operating results[131]. - Fixed expense levels may lead to significant changes in operating results if revenue expectations are not met, potentially resulting in quarterly losses[135]. - Economic and political conditions can adversely affect revenue growth and profitability, impacting the company's financial condition and stock price[137]. - The company may face challenges in hiring and retaining foreign nationals due to immigration restrictions, which could adversely impact operations and financial results[130]. Corporate Governance and Social Responsibility - The company is committed to Environmental, Social, and Governance (ESG) objectives, overseen by a dedicated committee[68]. - The company has implemented a Cyber Risk Management Program to assess and manage cybersecurity threats, with oversight from the Board Audit Committee[145][147]. - The Cyber Program includes mandatory training for new hires and quarterly training for employees, focusing on cybersecurity awareness and risk management[152]. - The company engages third-party auditors and cybersecurity service providers to enhance its cybersecurity measures and incident response capabilities[154][155]. - The company has not experienced any material cybersecurity incidents as of the end of the reporting year[156]. - The company is subject to various risks, including those from public health crises, which could adversely impact its operations and financial condition[141][142]. - The company maintains crisis management and disaster response plans to mitigate disruptions from catastrophic events[143].

Core Insights - Manhattan Associates reported revenue of $270.39 million for the quarter ended December 2025, reflecting a year-over-year increase of 5.7% and exceeding the Zacks Consensus Estimate of $264.25 million by 2.32% [1] - The company's EPS for the quarter was $1.21, up from $1.17 in the same quarter last year, and surpassed the consensus EPS estimate of $1.11 by 9.01% [1] Revenue Breakdown - Cloud subscriptions revenue was $108.56 million, slightly below the average estimate of $109.02 million, but showed a year-over-year growth of 20.2% [4] - Maintenance revenue reached $32.28 million, exceeding the average estimate of $29.56 million, but represented a decline of 3.8% year over year [4] - Hardware revenue was reported at $6.9 million, surpassing the estimated $5.94 million, but showed a decrease of 1% compared to the previous year [4] - Software license revenue was $2.64 million, significantly higher than the average estimate of $1.92 million, but reflected a substantial year-over-year decline of 51.5% [4] - Services revenue amounted to $120.01 million, exceeding the average estimate of $118 million, with a modest year-over-year increase of 0.4% [4] - Total revenue from Cloud Subscriptions, Maintenance, and Services was $260.85 million, surpassing the average estimate of $256.59 million [4] Stock Performance - Over the past month, shares of Manhattan Associates have returned +0.6%, compared to a +0.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Manhattan Associates reported better-than-expected fourth-quarter and full-year results for 2025, highlighting record cloud bookings and significant growth in remaining performance obligations (RPO) and total revenue [4][6][19] Financial Performance - For the full year, revenue totaled $1.08 billion, reflecting a 4% increase on an as-reported basis, with a 5% growth when excluding license and maintenance revenue [1] - Fourth-quarter revenue reached $270 million, up 6% year over year, with cloud revenue increasing by 20% to $109 million [3][6] - Full-year cloud revenue rose 21% to $408 million, while services revenue declined 4% to $503 million [1][3] Remaining Performance Obligations (RPO) - RPO ended the quarter at $2.2 billion, marking a 25% year-over-year increase and a 7% sequential rise [2][6] - The company guided for RPO of $2.62 billion to $2.68 billion for 2026, implying 18% to 20% growth [5][14] Cloud Revenue and Growth Metrics - Management introduced a new "ramped ARR" metric, which exceeded $600 million, up 23% year-over-year, indicating strong cloud revenue growth as subscription contracts ramp to full pricing [5][9] - Cloud revenue is expected to increase by 21% to $492 million in 2026 [16] Profitability and Cash Flow - Adjusted operating profit for Q4 was $91 million, representing a 33.8% margin, while full-year adjusted operating profit was $387 million with a 35.8% margin [6] - Fourth-quarter operating cash flow increased by 40% to $147 million, with a free cash flow margin of 52.7% [7] Strategic Initiatives - The company emphasized investments in AI agents and the Active platform, aiming to enhance customer productivity and satisfaction [11][12] - A reorganization of the global sales team and hiring of key executives were noted to support growth initiatives [13] Guidance and Outlook - Total revenue guidance for 2026 is set between $1.133 billion and $1.153 billion, implying a 10% growth excluding license and maintenance attrition [15] - Adjusted EPS guidance for 2026 is projected between $5.04 and $5.20, with GAAP EPS expected to be between $3.37 and $3.53 [16]

分组1 - Manhattan Associates reported quarterly earnings of $1.21 per share, exceeding the Zacks Consensus Estimate of $1.11 per share, and showing an increase from $1.17 per share a year ago, resulting in an earnings surprise of +9.01% [1] - The company achieved revenues of $270.39 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.32% and increasing from $255.8 million year-over-year [2] - Manhattan Associates has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 2.3% since the beginning of the year, outperforming the S&P 500's gain of 1.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.22 on revenues of $272.54 million, and for the current fiscal year, it is $5.31 on revenues of $1.14 billion [7] - The Computer - Software industry, to which Manhattan Associates belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 6% to $270 million, with full-year revenue totaling $1.08 billion, up 4% [20][22] - Cloud revenue for Q4 reached $109 million, up 20%, contributing to a full-year increase of 21% to $408 million [22] - Adjusted earnings per diluted share increased by 3% to $1.21 in Q4, while full-year adjusted EPS rose by 7% to $5.06 [23] - RPO increased by 25% year-over-year to $2.2 billion, with competitive win rates remaining over 70% [10][22] Business Line Data and Key Metrics Changes - Services revenue in Q4 was $120 million, returning to growth earlier than expected, while full-year services revenue declined by 4% to $503 million [22][23] - New logos represented more than 55% of new cloud bookings in 2025, with expectations for net new logos to revert to one-third of new cloud bookings over time [10][22] Market Data and Key Metrics Changes - The company reported strong performance across various sectors, including retail, grocery, food distribution, life sciences, and technology [11] - The pipeline remains strong with numerous opportunities for growth, including adding new customers and cross-selling [13] Company Strategy and Development Direction - The company aims to deliver sustainable double-digit top-line growth and top quartile operating margins, with a focus on cloud revenue and AI capabilities [25][30] - Strategic investments in R&D and sales have been made to enhance product offerings and improve sales velocity [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business fundamentals and the strong momentum entering 2026, despite a volatile macro environment [5][31] - The introduction of AI agents and the Agent Foundry is expected to drive significant value and customer satisfaction [7][16] Other Important Information - The company ended the year with $329 million in cash and zero debt, having invested $75 million in share repurchases in Q4 [24][25] - A new metric, ramped ARR, was introduced, which exceeded $600 million, up 23% year-over-year [11][21] Q&A Session Summary Question: Comments on cloud migrations and renewals - Management noted early success in converting on-prem customers to cloud solutions and building a strong pipeline for 2026 [34][35] Question: Insights on RPO strength and deal timing - The strength in RPO was attributed to a variety of products and deal types, with confidence in the pipeline for the upcoming year [47][49] Question: Services business outlook and growth confidence - Management highlighted strong bookings growth and the impact of agentic AI as key drivers for the services business, projecting mid-single-digit growth [61][110] Question: Clarification on customer liquidation headwind - A customer liquidation headwind of $1.3 million was noted for Q4, with an annualized impact of $2.5 million expected in 2026 [100][103]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 6% to $270 million, with full-year revenue totaling $1.08 billion, up 4% [20][22] - Cloud revenue for Q4 reached $109 million, up 20%, contributing to a full-year cloud revenue increase of 21% to $408 million [22] - Adjusted earnings per diluted share increased to $1.21 in Q4, a 3% rise, while full-year adjusted earnings per share rose 7% to $5.06 [23] - RPO (Remaining Performance Obligations) increased by 25% year-over-year to $2.2 billion [22] Business Line Data and Key Metrics Changes - Services revenue in Q4 was $120 million, returning to growth earlier than expected, while full-year services revenue declined 4% to $503 million [22][23] - Competitive win rates remained over 70%, with over 75% of new cloud bookings generated from net new logos [10] Market Data and Key Metrics Changes - The company reported strong performance across various sectors, including retail, grocery, and life sciences, with significant new logo acquisitions in Q4 [11][12] - The pipeline remains strong, with opportunities for growth through new customer additions and cross-selling existing products [13] Company Strategy and Development Direction - The company aims to leverage its strengths in cloud solutions and AI capabilities to drive growth, with a focus on faster implementation and customer satisfaction [7][8] - Strategic investments in sales and marketing, along with the introduction of new leadership roles, are expected to enhance operational effectiveness [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing record cloud bookings and strong cash flow as indicators of robust business fundamentals [5][31] - The company anticipates continued momentum into 2026, with a target for total revenue growth of 10% and cloud revenue growth of 21% [26][28] Other Important Information - The company introduced a new metric, ramped ARR (Annual Recurring Revenue), which exceeded $600 million, up 23% year-over-year, to provide better visibility into cloud revenue growth [11][21] - The company plans to invest in share repurchases, having already repurchased $275 million worth of shares in 2025 [25] Q&A Session Summary Question: Comments on cloud migrations and renewals - Management noted early success in converting on-prem customers to cloud solutions and building a strong pipeline for 2026 [34][35] Question: Insights on faster implementation times - Management confirmed progress in accelerating deployment timelines, allowing for fixed-fee, fixed-timeline deals [40][41] Question: Clarification on cash taxes and free cash flow - Management indicated that cash taxes would remain stable, with free cash flow expected to align closely with EBIT and EBITDA [43] Question: RPO strength and deal timing - Management highlighted that Q4 RPO strength was driven by a variety of products and deal types, providing confidence in the pipeline for 2026 [47][49] Question: Services business outlook - Management expressed confidence in the services business, driven by strong bookings growth and the introduction of agentic AI, which is expected to enhance service offerings [61][62]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 6% to $270 million, with full-year revenue totaling $1.08 billion, up 4% [21][22] - Adjusted earnings per diluted share increased by 3% to $1.21, while GAAP earnings per share increased by 12% to $0.86 [23] - RPO (Remaining Performance Obligations) increased by 25% to $2.2 billion, reflecting strong new logo momentum [22][24] - Operating cash flow increased by 40% to $147 million in Q4, with a free cash flow margin of 52.7% [24] Business Line Data and Key Metrics Changes - Q4 cloud revenue totaled $109 million, up 20%, contributing to a full-year cloud revenue increase of 21% to $408 million [22][24] - Services revenue in Q4 was $120 million, returning to growth earlier than expected, while full-year services revenue declined by 4% to $503 million [22][23] - Competitive win rates remained over 70%, with more than 75% of new cloud bookings generated from net new logos [9][22] Market Data and Key Metrics Changes - The company reported strong performance across various sectors, including retail, grocery, food distribution, life sciences, and technology [10][11] - New logos represented over 55% of new cloud bookings in 2025, indicating a healthy market presence [9][22] Company Strategy and Development Direction - The company aims to leverage its strengths in cloud solutions and AI capabilities to drive growth, with a focus on faster implementation and customer satisfaction [5][12] - Strategic investments in sales and marketing, along with key hires, are expected to enhance growth and operational effectiveness [6][8] - The introduction of AI agents and the Agent Foundry is a significant part of the company's strategy to provide innovative solutions to customers [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong fundamentals and a robust pipeline for 2026 [31] - The company anticipates continued growth in cloud revenue and a focus on expanding its customer base through cross-selling and converting on-premise customers to the cloud [12][30] - Management acknowledged the potential impact of the global macro environment on performance but remains optimistic about future prospects [3][4] Other Important Information - The company introduced a new metric, ramped ARR (Annual Recurring Revenue), which exceeded $600 million, up 23% year-over-year [10][21] - The board approved a replenishment of the $100 million share repurchase authority, reflecting confidence in the company's financial position [25] Q&A Session Summary Question: Progress on cloud migrations and fast renewals - Management reported early success in converting on-prem customers to cloud solutions and building a strong pipeline for 2026 [33][34] Question: Implementation times and time to value - Management indicated good progress in accelerating implementation times and closing deals as fixed-fee, fixed-timeline agreements [35][36] Question: RPO strength and deal timing - Management highlighted that Q4 strength came from a variety of products and deal types, contributing to confidence in the pipeline for 2026 [38][39] Question: Renewals and growth expectations - Management clarified that the expected 18%-20% contribution from renewals in 2026 reflects a conservative approach to deal durations [41][42] Question: Services business outlook - Management expressed confidence in the services business, driven by strong bookings growth and the introduction of agentic AI [43][60] Question: New bookings and migration pace - Management noted that new bookings include new logos, expansion within existing accounts, and conversions from on-prem to cloud, with a focus on market share growth [46][47] Question: Customer liquidation headwind - Management confirmed a $1.3 million headwind in Q4 due to customer liquidation, which is now accounted for in future projections [58]