Manhattan Associates, Inc.

Q2 total revenue was $298 million, up 9% year over year; excluding license and maintenance revenue, total revenue was up 13%. Cloud revenue increased 26% to $127 million, service revenue increased 3% to $133 million, and RPO rose 23% to $2.47 billion. Adjusted operating profit was $104 million with a 34.9% margin; adjusted EPS was $1.39, up 6%, while GAAP EPS was $0.85, down 9% due to about $8 million, or $0.11 per share, of restructuring expense. Operating cash flow increased 22% to $91 million, free cash flow margin was 30.1%, and adjusted EBITDA margin was 35.4%. For 2026, the company raised guidance: total revenue to $1.160 billion to $1.166 billion, adjusted operating margin to about 35.1%, adjusted EPS to $5.44 to $5.50, and cloud revenue midpoint to $505.5 million. Q3 guidance is total revenue of $294 million to $298 million and adjusted EPS of $1.45; Q4 revenue is expected to be about $287 million and Q4 adjusted EPS about $1.37. The company now expects FX to be neutral for the year versus a prior 1-point tailwind, and said service revenue guidance was reduced by $4.5 million due roughly half to FX and half to European implementation timing.

Eric Clark said Q2 and first-half results were record-setting despite a volatile macro backdrop, with momentum supported by cloud growth, bookings strength, and what he described as a working go-to-market strategy. He emphasized two drivers: product innovation and the sales/marketing investments made a year ago, which he said are opening more opportunities across the portfolio. His tone was upbeat and confident, especially around AI, conversions, and the new Editions packaging, which he framed as a way to expand the market without changing the underlying platform.

Linda C. Pinne highlighted better-than-expected top- and bottom-line performance, strong bookings and cloud growth, and operating margin expansion. She cited $298 million of revenue, $104 million of adjusted operating profit, 34.9% margin, $91 million of operating cash flow, $186 million of cash, zero debt, and $125 million of share repurchases in the quarter, bringing year-to-date buybacks to $275 million with $225 million still authorized. She also said the restructuring charge of about $8 million weighed on GAAP EPS, but management is not expecting a margin benefit from headcount reductions in 2026 because savings are being reinvested in sales and marketing and bonus accruals.

Analysts focused on two themes: how quickly agentic AI can become meaningful financially, and whether the new Editions packaging could create sales friction. Management said agents are still early and too new to quantify precisely, but reiterated that about 10% of the installed base is in pilot or subscription and that pilot-to-subscription conversion has been 100% so far. On Editions, Eric Clark said the change should not disrupt selling because Manhattan is already selling into these segments; it simply allows the company to sell its active platform, rather than scale, to more customers and smaller sites. Questions also covered renewals, RPO strength, and macro volatility; management said renewals are in line with plan, RPO strength came from higher deal volume rather than timing, and customers remain willing to invest in value-creating projects despite tariff and geopolitical noise.