A month has gone by since the last earnings report for Manhattan Associates (MANH Quick QuoteMANH - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Manhattan Associates due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

MANH Q2 Earnings Beat Estimates, Cloud Growth Fuels Revenues

Manhattan Associates reported second-quarter 2026 non-GAAP adjusted earnings of $1.39 per share, beating the Zacks Consensus Estimate by 6.11% and increasing 6.1% year over year.

Revenues beat the consensus mark by 3.6% and climbed 9.3% year over year to $297.8 million. Management reported better-than-expected revenues and profitability, accelerating cloud growth and a sharp increase in remaining performance obligations.

RPO increased to $2.47 billion as of June 30, 2026, compared to $2.35 billion as of March 31, 2026, representing 23% growth year over year.

MANH's Q2 Top-Line Details

Cloud subscription revenues surged 26.2% year over year to $126.7 million. Software license revenues rose 25.9% year over year to $1.9 million, reflecting stronger deal activity within a still small revenue base. Maintenance revenues slipped 12.9% year over year to $30.5 million as customers continued migrating to cloud-native deployments. Services revenues grew 3.2% year over year to $133.0 million. Hardware revenues declined 14.4% year over year to $5.6 million.

On a geographic basis, Americas revenues grew 9.9% year over year to $227 million. EMEA revenues increased 5.9% year over year to $55.4 million. APAC revenues rose 14% year over year to $15.4 million.

Operating Details of MANH

GAAP total costs and expenses rose 16.6% year over year to $231.6 million, driven in part by an $8.3 million restructuring charge tied to the June headcount reduction. GAAP operating income declined 10.2% year over year to $66.2 million. Non-GAAP adjusted operating income increased 2.7% year over year to $103.9 million.

GAAP net income declined 11.3% year over year to $50.4 million while GAAP EPS fell 8.6% year over year to 85 cents, reflecting the restructuring expense and elevated equity-based compensation costs relative to the year-ago period. Non-GAAP adjusted EPS grew 6.1% year over year to $1.39.

MANH's Q2 Balance Sheet & Cash Flow

Cash flow from operations grew 22.6% year over year to $90.7 million. Days Sales Outstanding improved to 67 days at June 30, 2026 from 72 days at March 31, 2026. Cash totaled $186.1 million at June 30, 2026, down 17.7% from $226.1 million at March 31, 2026, largely reflecting continued share repurchase activity.

Capital expenditures were $1 million in the second quarter of 2026, down 74.7% year over year from $4 million in the second quarter of 2025. Manhattan Associates ended the quarter with no debt on its balance sheet.

During the three months ended June 30, 2026, the company repurchased approximately 874,029 shares for a total of $125.0 million. Over the six months ended June 30, 2026, total repurchases reached 1,917,341 shares for $275.0 million. Approximately $225 million remained under the existing March 2026 repurchase authority as of quarter end.

MANH's 2026 Guidance

For full-year 2026, Manhattan Associates raised guidance for total revenues to a range of $1.16 billion to $1.166 billion, implying 7-8% growth. GAAP operating margin guidance is 24.2% to 24.4% while non-GAAP adjusted operating margin is expected at 35-35.2%. GAAP EPS is projected at $3.59-$3.65 while non-GAAP adjusted EPS is guided at $5.44-$5.5, representing 8-9% growth.

Full-year 2026 cloud revenue guidance was raised, with the midpoint increasing to $505.5 million, implying approximately 24% growth.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Manhattan Associates has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Manhattan Associates has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Manhattan Associates belongs to the Zacks Computer - Software industry. Another stock from the same industry, Pegasystems (PEGA Quick QuotePEGA - Free Report) , has gained 9.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Pegasystems reported revenues of $420.72 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.35 for the same period compares with $0.28 a year ago.

Pegasystems is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of +60%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pegasystems. Also, the stock has a VGM Score of B.