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Manhattan Associates Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 21 April 2026: press release. Guidance figures: 6 raised, 1 lowered. The quarter’s numbers.

Key takeaways

  • Revenue rose to $282.2 million: Total revenue increased from $262.8 million in the first quarter of 2025, an increase of $19.4 million. Source
  • GAAP EPS slipped, adjusted EPS rose: GAAP diluted EPS was $0.82 against $0.85. Adjusted diluted EPS was $1.24 against $1.19, the company's non-GAAP measure. Source
  • Americas drove the revenue increase: Americas revenue was $214.6 million against $194.6 million. Americas GAAP operating income was $39.0 million against $33.9 million. Source
  • Cloud subscriptions drove revenue growth: Cloud subscription revenue was $117.1 million against $94.3 million, the largest source of the increase in total revenue. Source
  • Remaining performance obligations rose 24%: RPO was $2.35 billion at March 31, 2026, up from $2.23 billion at December 31, 2025. The release headline cites a 24% increase over the prior year. Source
  • Cash balance fell after buybacks: Cash was $226.1 million, down from $328.7 million at December 31, 2025. Total cash paid for shares repurchased in the quarter was $179.4 million, including shares withheld for taxes. Source
  • Repurchases of 1.04 million shares: The company repurchased 1,043,312 shares under its publicly announced program for $150.0 million. About $350.0 million remained under the March 2026 authority at quarter end. Source

“On solid and broad-based demand, we accelerated our Q1 revenue growth and delivered better than expected bookings,”

Eric Clark, Manhattan Associates president and CEO

Guidance

AreaPeriodFigureAgainst last quarter
Total revenue Sourcefull year 2026$1,147 million to $1,157 million (6% to 7% growth)Raised from $1,133 million to $1,153 million (5% to 7% growth)
GAAP operating margin Sourcefull year 202624.6% to 24.9%Raised from 24.1% to 24.7%
Equity-based compensation as a percent of revenue Sourcefull year 202610.3% to 10.2%Lowered from 10.4% to 10.3%
Adjusted operating margin Sourcefull year 202634.9% to 35.1%Raised from 34.5% to 35.0%
GAAP diluted EPS Sourcefull year 2026$3.55 to $3.63 (-1% to 1%)Raised from $3.37 to $3.53 (-6% to -2%)
Equity-based compensation per share Sourcefull year 2026$1.70Raised from $1.69
Tax deficiency of stock awards vested per share Sourcefull year 2026$0.04
Adjusted diluted EPS Sourcefull year 2026$5.29 to $5.37 (5% to 6% growth)Raised from $5.04 to $5.20 (0% to 3% growth)

What changed from last quarter

  • Guidance raised: Revenue, GAAP operating margin, adjusted operating margin, GAAP EPS and adjusted EPS ranges were all moved up from the prior quarter. Source
  • Guidance lowered: The equity-based compensation range as a percent of revenue was lowered by 0.1 point at each end. Source
  • New: Adjusted operating margin and adjusted EPS now also exclude an unusual health insurance claim expense and restructuring expense, along with related income tax effects. Source
  • New: The Board approved raising the share repurchase authority from $100 million to $500 million in March 2026. Source

Results and growth drivers

  • Revenue rose to $282.2 million: Total revenue increased from $262.8 million in the first quarter of 2025, an increase of $19.4 million. Source
  • GAAP EPS slipped, adjusted EPS rose: GAAP diluted EPS was $0.82 against $0.85. Adjusted diluted EPS was $1.24 against $1.19, the company's non-GAAP measure. Source
  • Operating income edged up: GAAP operating income was $64.9 million against $63.2 million. Adjusted operating income was $91.5 million against $91.3 million. Source
  • Other income and tax both rose: Other income, net was $4.3 million against $1.3 million. The income tax provision was $20.0 million against $11.9 million, and net income was $49.3 million against $52.6 million. Source

Segments and regions

  • Americas drove the revenue increase: Americas revenue was $214.6 million against $194.6 million. Americas GAAP operating income was $39.0 million against $33.9 million. Source
  • EMEA revenue and operating income fell: EMEA revenue was $53.7 million against $55.5 million. GAAP operating income was $19.7 million against $23.7 million. Source
  • APAC revenue and operating income rose: APAC revenue was $14.0 million against $12.6 million. GAAP operating income was $6.3 million against $5.6 million. Source
  • Americas adjusted operating income higher: Americas adjusted operating income was $65.5 million against $62.0 million, after excluding equity-based compensation and the prior-year unusual health insurance claim. Source

“With a strong pipeline across our product suite, numerous opportunities to drive growth, and our unmatched ability to consistently deliver leading innovation”

Eric Clark, Manhattan Associates president and CEO

Revenue mix and products

  • Cloud subscriptions drove revenue growth: Cloud subscription revenue was $117.1 million against $94.3 million, the largest source of the increase in total revenue. Source
  • License revenue fell sharply: Software license revenue was $2.2 million against $9.3 million, a decline of $7.1 million. Source
  • Services, maintenance and hardware mixed: Services revenue was $125.7 million against $121.1 million. Maintenance was $30.6 million against $32.1 million, and hardware was $6.5 million against $5.9 million. Source

Costs and margins

  • Cost of revenue rose: Cost of cloud subscriptions, maintenance and services was $126.1 million against $114.4 million. Research and development was $37.3 million against $35.3 million. Source
  • Sales and marketing spend rose: Sales and marketing was $27.8 million against $21.1 million. General and administrative was $23.7 million against $24.2 million, and no restructuring expense was recorded this quarter. Source
  • Equity-based compensation eased: Equity-based compensation was $26.5 million against $28.8 million. The prior-year quarter also included a $3.7 million unusual health insurance claim benefit, excluded from adjusted results. Source

“we are optimistic about our long-term growth opportunity,”

Eric Clark, Manhattan Associates president and CEO

Demand and the order book

  • Remaining performance obligations rose 24%: RPO was $2.35 billion at March 31, 2026, up from $2.23 billion at December 31, 2025. The release headline cites a 24% increase over the prior year. Source
  • Deferred revenue increased: Deferred revenue was $355.9 million at March 31, 2026, against $337.0 million at December 31, 2025. Source
  • Days sales outstanding eased slightly: Days sales outstanding was 72 days at March 31, 2026, against 73 days at December 31, 2025. Accounts receivable, net was $227.1 million against $214.7 million. Source

Cash, capital and shareholder returns

  • Operating cash flow rose: Cash flow from operations was $84.0 million against $75.3 million in the first quarter of 2025. Source
  • Cash balance fell after buybacks: Cash was $226.1 million, down from $328.7 million at December 31, 2025. Total cash paid for shares repurchased in the quarter was $179.4 million, including shares withheld for taxes. Source
  • Repurchases of 1.04 million shares: The company repurchased 1,043,312 shares under its publicly announced program for $150.0 million. About $350.0 million remained under the March 2026 authority at quarter end. Source
  • Capital expenditures increased: Purchases of property and equipment were $4.1 million, against $0.9 million a year earlier. Source
  • Weighted diluted share count fell: Weighted average diluted shares were 60.0 million, against 61.5 million a year earlier. Source

Strategy and positioning

  • Company description leads with AI: The company's description now leads with unmatched AI capabilities and AI-powered, cloud-based solutions for businesses. Source
  • Front-end and back-end unified: The company says it enables enterprises to unify front-end sales with back-end supply chain execution. Source
  • Innovation and API-first architecture cited: Management cites innovation, a cloud-native platform and API-first architecture as creating simpler experiences and faster paths to value for customers. Source

Non-GAAP items and tax

  • Tax deficiency on stock vesting: Tax deficiency of stock awards vested was $2.2 million in the quarter, against a $3.5 million benefit a year earlier. The company excludes it from adjusted results. Source
  • Unusual health claim fully settled: The company settled the remaining balance of an unusual health insurance claim in Q4 2025 and excludes it from adjusted results. No such expense was recorded in Q1 2026. Source
  • Exclusions aid peer comparison: Management says adjusted results exclude all equity-based compensation to facilitate comparison with peers and for other reasons set out in its earlier Form 8-K. Source

Coming up, as management said on 21 April 2026

  • Next-quarter detail on the call: Management said the call will cover expectations for the year and next quarter in more detail. Source

Figures management reported

FigureReported
Remaining performance obligations Source$2.35 billion at March 31, 2026, up from $2.23 billion
Cloud subscription revenue Source$117.1 million in Q1 2026, against $94.3 million
Cloud-native share of RPO SourceOver 98%

Risks management discussed

  • Demand: Management said macro volatility persists, and described the company's fundamentals as solid. Source

Earlier plans management reported on

  • Not stated: The company expects the stock vesting tax item to fall primarily in the first quarter of 2026, now guided as a deficiency. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.