Manhattan Associates delivered a positive Q2, with the market responding strongly to the company's better-than-expected results. Management attributed the quarter’s outperformance to robust growth in cloud revenue, effective cross-selling of its unified platform, and solid execution in sales. CEO Eric Clark pointed to “22% cloud revenue growth” and highlighted strength from new customer wins. The company’s consistent win rates against major competitors and healthy pipeline supported its recent performance.
Is now the time to buy MANH? Find out in our full research report (it’s free).
Manhattan Associates (MANH) Q2 CY2025 Highlights:
- Revenue: $272.4 million vs analyst estimates of $263.6 million (2.7% year-on-year growth, 3.3% beat)
- Adjusted EPS: $1.31 vs analyst estimates of $1.13 (16.2% beat)
- Adjusted Operating Income: $101.1 million vs analyst estimates of $86.48 million (37.1% margin, 16.9% beat)
- The company slightly lifted its revenue guidance for the full year to $1.07 billion at the midpoint from $1.07 billion
- Management raised its full-year Adjusted EPS guidance to $4.80 at the midpoint, a 4.6% increase
- Operating Margin: 27.1%, up from 25.7% in the same quarter last year
- Billings: $270.2 million at quarter end, up 3.8% year on year
- Market Capitalization: $13.39 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Manhattan Associates’s Q2 Earnings Call
- Terrell Tillman (Truist Securities) asked about further accelerating unified platform adoption; CEO Eric Clark described engineering and product council efforts to deepen integration and highlighted increasing customer buy-in at recent events.
- Joseph Vruwink (Baird) questioned the potential for go-to-market investments to drive cloud growth above 20%; Clark noted the low-risk, high-return nature of recent hires and partnerships, but reiterated that guidance for multiyear cloud growth remains unchanged.
- Brian Peterson (Raymond James) explored on-premise to cloud migration trends; Clark explained that while only about 20% of on-premise customers have converted, aggressive efforts are underway to increase conversions and cross-sell opportunities.
- Dylan Becker (William Blair) inquired about implementation efficiency and its impact on market expansion; Clark cited automation and AI reducing deployment timelines, making the solutions more attractive to both existing and down-market customers.
- George Kurosawa (Citi) asked about macro trends and the timing of renewal cycles; Clark stated that while macro conditions remain variable, the company is proactively preparing for a ramp in renewals over the next 18 months.
Catalysts in Upcoming Quarters
In the coming quarters, our analyst team will closely watch (1) the uptake and customer engagement with new AI-powered Agentic capabilities, (2) the effectiveness of expanded sales and marketing initiatives in driving new logo wins and cross-sell opportunities, and (3) the progression of on-premise customer migrations to cloud solutions. Developments in strategic partnerships and the impact of macroeconomic factors on services demand will also be important to monitor.
Manhattan Associates currently trades at $221.47, up from $203.44 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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