GET DAILY SIGNALSManhattan Associates (MANH) Shares Rise +11% After Q3 Earnings Beat and Cloud Milestone
Key Takeaways
- Third-quarter 2026 revenue rose 11% year over year to $306.2 million, exceeding Wall Street's consensus estimate of roughly $297 million.
- Adjusted (non-GAAP) earnings per share (EPS) came in at $1.55, beating the consensus estimate of $1.46 by about 6%.
- Cloud subscription revenue climbed 28% to $134.4 million, surpassing services revenue for the first time in the company's history.
- Remaining performance obligation (RPO), a key measure of contracted future revenue, grew 25% to $2.59 billion, signaling a healthy demand pipeline.
- Management raised full-year 2026 guidance, now expecting revenue of about $1.18 billion and adjusted EPS of roughly $5.55.
- Shares jumped approximately 11% in after-hours trading following the release.
Why These Results Stand Out
Manhattan Associates provides supply chain and omnichannel commerce software, so its quarterly numbers often reflect broader trends in enterprise tech spending and logistics demand. Before the report, the focus was on whether the company could keep delivering double-digit growth in cloud subscriptions amid economic caution. This quarter marked a notable shift, with cloud revenue moving ahead of services for the first time, pointing to more recurring, higher-margin business. The beat on revenue and adjusted EPS, plus the raised full-year outlook, suggested demand is holding up well despite mixed corporate budgets.
The Quarter in Detail
Total revenue reached $306.2 million, an 11% increase from $275.8 million a year ago and above the roughly $297 million consensus. Cloud subscription revenue jumped 28% to $134.4 million, while services revenue stayed essentially flat at $134.4 million. On a GAAP basis, diluted EPS rose to $1.05 from $0.97. Adjusted EPS came in at $1.55, topping the $1.46 estimate and improving from $1.36 in the third quarter of 2025. Adjusted operating income was $115.2 million for a 37.6% margin. RPO climbed 25% to $2.59 billion, and billings grew 16.1% to $317.2 million. Full-year 2026 guidance was lifted to revenue of $1.176 billion to $1.178 billion and adjusted EPS of $5.54 to $5.56.
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Reacted
Shares climbed about 11% in after-hours trading to around $260.09. The combination of the revenue and earnings beat, faster cloud growth, and the cloud-services crossover clearly resonated with investors. Raised guidance added to the positive tone, and the 25% RPO increase stood out as a strong sign of future visibility. Execution that beat expectations helped ease concerns over a modest dip in GAAP operating margin.
What to Watch Going Forward
Attention will likely stay on whether cloud-subscription growth can continue as it becomes a larger part of the mix. The recent crossover supports the case for margin expansion over time, though near-term GAAP margins may still feel pressure from equity compensation and other costs. RPO and billings remain key indicators of pipeline strength and revenue timing. The updated full-year targets of roughly $1.18 billion in revenue and $5.55 adjusted EPS set a baseline, but delivery at the upper end will matter. Broader enterprise spending and supply chain cycles could influence results, so updates on customer budgets and deal flow will be worth noting. Share repurchases and cash generation also deserve monitoring given the company’s track record.
Exploring AI Tools for Earnings Analysis
From what I see, Tickeron’s AI Screener offers a practical way to filter stocks by technical patterns, fundamentals, and AI signals. I’ve used it to quickly surface comparable names and monitor sector shifts around earnings season, which helps put individual results like these into broader context without spending hours on manual screens.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
MANH in upward trend: 10-day moving average moved above 50-day moving average on October 13, 2026
The 10-day moving average for MANH crossed bullishly above the 50-day moving average on October 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on MANH as a result. In 57 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
The Moving Average Convergence Divergence (MACD) for MANH just turned positive on October 12, 2026. Looking at past instances where MANH's MACD turned positive, the stock continued to rise in 38 of 52 cases over the following month. The odds of a continued upward trend are 73%.
MANH moved above its 50-day moving average on October 12, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.00% 3-day Advance, the price is estimated to grow further. Considering data from situations where MANH advanced for three days, in 234 of 343 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 127 of 200 cases where MANH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 63%.
Bearish Trend Analysis
The 10-day RSI Indicator for MANH moved out of overbought territory on October 26, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In 29 of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MANH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 69%.
MANH broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 14 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 19 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. MANH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 70 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MANH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
The Tickeron Valuation Rating of 96 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (87.509) is normal, around the industry mean (-1.637). P/E Ratio (67.159) is within average values for comparable stocks, (15.502). Projected Growth (PEG Ratio) (2.566) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.077) among similar stocks. P/S Ratio (11.338) is also within normal values, averaging (71.128).
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General Information
a company which designs, builds and delivers supply chain commerce solutions
Industry PackagedSoftware
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