Earnings analysis · 10-Q
MANH earnings analysis
Filed April 24, 2026 · Our reading of the company's report
The latest report
Manhattan Associates reported Q1 2026 revenue of $282.2M, up 7% year-over-year, driven by a 24% increase in cloud subscriptions to $117.1M and a 24% RPO expansion to ~$2.3B. Operating income rose to $64.9M (+3%) but…
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Manhattan Associates reported Q1 2026 revenue of $282.2M, up 7% year-over-year, driven by a 24% increase in cloud subscriptions to $117.1M and a 24% RPO expansion to ~$2.3B. Operating income rose to $64.9M (+3%) but operating margin compressed to 23.0% from 24.0%; GAAP diluted EPS declined to $0.82 from $0.85. Cash from operations was strong at $84.0M, but cash declined to $226.1M after $150.0M of share repurchases (1.04M shares).
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.82
What stood out
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Revenue growth led by cloud
Total revenue increased 7% to $282,215,000 in Q1 2026 (from $262,787,000 in Q1 2025), with cloud subscriptions up 24% to $117,123,000 (from $94,306,000).
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RPO expansion signals backlog strength
Remaining performance obligations (RPO) grew approximately 24% year-over-year to approximately $2.3 billion as of March 31, 2026.
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Operating income up despite margin pressure
Operating income increased to $64,937,000 in Q1 2026 (from $63,172,000), while operating margin compressed to 23.0% (from 24.0%).
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Strong operating cash flow
Cash flow from operating activities was $84.0 million in Q1 2026, up from $75.3 million in Q1 2025.
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Aggressive capital return
The company repurchased approximately 1,043,312 shares in Q1 2026 for a total of $150.0 million; Board increased repurchase authority to $500.0 million with ~$350.0 million remaining.
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Geographic strength — Americas
Americas revenue grew 10% to $214,550,000 in Q1 2026 (from $194,615,000), with Americas operating income up 15% to $39,005,000 (from $33,862,000).
What to watch
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GAAP EPS declined
Diluted earnings per share decreased to $0.82 in Q1 2026 from $0.85 in Q1 2025, reflecting margin and share-repurchase effects.
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Operating margin compression
Operating margin fell to 23.0% in Q1 2026 compared to 24.0% in Q1 2025 despite a 3% increase in operating income.
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Cash balance reduced after buybacks
Cash and cash equivalents declined to $226,100,000 at March 31, 2026 from $328,700,000 at December 31, 2025, after repurchasing $150.0 million of stock in the quarter.
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Software license revenue dropped sharply
Software license revenue decreased 76% to $2,234,000 in Q1 2026 from $9,292,000 in Q1 2025, driven by absence of a large prior-period contract.
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EMEA profitability weakness
EMEA revenue declined 3% to $53,663,000 and EMEA operating income fell 17% to $19,670,000 in Q1 2026 (from $55,542,000 and $23,703,000, respectively).
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Geopolitical risk flagged
MD&A adds a new risk: a military conflict involving the United States, Israel and Iran 'commenced in February 2026' and could disrupt shipping, energy prices and customer spending.
Management's outlook
The Form 10-Q contains no numeric fiscal-year guidance. Management states priorities for 2026 (invest in cloud/R&D, expand sales & marketing, and share repurchases) and says 'we do not anticipate any borrowing requirements in 2026.' Board increased repurchase authority to $500.0 million with approximately $350.0 million remaining as of quarter-end.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.