Manhattan Associates (MANH) stock price is $257.35, down 1.18% on the day, as of Nov 5, 2026. It has a market cap of $15.12Bn and a P/E ratio of 70.99, and is classified in the Supply Chain Software industry (Technology sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap15.12 Bn
P/E70.99
FCF (Yr)374.01 Mn
ROA (Yr)27.55
EV to EBIT50.78
Net Income (Yr)219.95 Mn
Enterprise Value14.18 Bn
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About
Manhattan Associates develops, sells, deploys, services and maintains software solutions designed to manage supply chains, inventory and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. The company focuses on delivering cloud‑based applications that help customers optimize distribution, transportation, order fulfillment and inventory planning. Its technology is built on a proprietary platform that supports…
Manhattan Associates develops, sells, deploys, services and maintains software solutions designed to manage supply chains, inventory and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. The company focuses on delivering cloud‑based applications that help customers optimize distribution, transportation, order fulfillment and inventory planning. Its technology is built on a proprietary platform that supports continuous updates without versioning. The firm’s product suite includes specialized modules for warehouse automation, transportation optimization and real‑time inventory visibility.
Revenue is generated primarily through subscription‑based software as a service (SaaS) offerings, which provide customers with regular access to updates and new features. In addition, the company earns fees from professional services, including implementation, training and change‑management support, and from the resale of third‑party hardware such as barcode scanners and RFID readers. Maintenance contracts for on‑premise licenses also contribute to the revenue stream. Professional services are typically billed on a time‑and‑materials basis, with occasional fixed‑fee arrangements tied to project milestones.
The company operates through the following segments.
Supply Chain Execution: This segment provides warehouse management, transportation management and labor optimization tools that help customers manage distribution centers, move freight efficiently and automate yard operations.
Omnichannel Commerce: This segment delivers unified commerce applications for order management, store inventory and fulfillment, point‑of‑sale and customer engagement, enabling retailers to sell and fulfill across multiple channels.
Supply Chain Planning: This segment offers demand forecasting, replenishment and allocation solutions that synchronize inventory decisions with real‑time execution systems.
Manhattan Associates competes with established enterprise resource planning providers such as Oracle, SAP and Infor, as well as specialized supply chain vendors including Blue Yonder, E2Open and Manhattan’s own niche peers. The company differentiates itself through a cloud‑native, versionless architecture that delivers quarterly updates without requiring planned downtime, and through deep domain expertise in omnichannel and supply chain operations. Its ability to integrate warehouse, transportation, order and planning functions on a single platform reduces complexity and total cost of ownership for customers. The company’s longstanding relationships with market‑leading brands and its consistent investment in research and development reinforce its competitive position.
The company serves a diverse base of retailers, wholesalers, manufacturers, logistics providers and other organizations that rely on its software to manage complex supply chain and omnichannel processes. While no single customer accounts for more than ten percent of revenue, the top five customers collectively contributed roughly eleven percent of total sales in the most recent fiscal year. Manhattan’s client list includes many of the world’s leading brands across consumer goods, food and grocery, high technology and life‑science sectors. Its solutions are widely adopted in sectors such as apparel, food and beverage, automotive and pharmaceuticals, where precise inventory control and omnichannel fulfillment are critical.
Sector:TechnologySector rationaleManhattan Associates designs and sells cloud-based software for supply chain management, inventory, and omnichannel operations, with revenue primarily generated through a SaaS subscription model. Its core products—warehouse management, transportation optimization, and demand forecasting—fall directly under the 'Supply Chain Software' industry within the Technology sector.Industries:Supply Chain SoftwareSupply Chain SoftwarePrimaryManhattan Associates provides software specifically for supply chain execution, including warehouse management, transportation management, and demand forecasting. Its products are purpose-built for logistics providers, wholesalers, and manufacturers to optimize distribution and inventory planning.Restaurant and Retail SoftwareRestaurant and Retail SoftwareSecondaryThe company's Omnichannel Commerce segment delivers unified commerce applications, including point-of-sale and store inventory fulfillment, specifically for retailers.Technology DistributionTechnology DistributionSecondaryThe company generates revenue from the resale of third-party hardware, such as barcode scanners and RFID readers, to its customers.Classified using BQ-MICSCIK: 0001056696
Bull & bear
Investment Thesis
▲ Bull case
Manhattan Associates is strategically positioned to capitalize on the accelerating adoption of Agentic AI through its Active Agents offering, which leverages a unique architectural advantage that embeds AI directly into operational workflows without requiring external data lakes or complex integration, as evidenced by early pilot customers reporting double-digit reductions in loading times and up to 75% fewer exceptions requiring triage in food distribution operations. The company's Agent Foundry enables rapid development of custom agents tailored to specific operational pain points, such as dynamic resource allocation in retail distribution centers, which improved order cycle times by 5%, and this capability is being scaled through forward-deployed engineers drawn from R&D and services teams, creating a defensible moat against competitors who lack such embedded technical expertise. With over 55% of new cloud bookings coming from net new logos and strong win rates consistently above 70%, Manhattan is expanding beyond its traditional retail base into high-growth verticals like life sciences, industrial, and third-party logistics, where unified warehouse and transportation solutions are delivering outsized value by reducing integration complexity and accelerating time to value. The recent launch of Manhattan Marketplace and Solution Design Studio further amplifies this edge by creating an open, collaborative ecosystem where partners and customers can co-develop and deploy AI-powered extensions and configurations using natural language blueprints, significantly lowering barriers to adoption and extending the platform's utility beyond core supply chain functions into broader commerce execution. These innovations are not incremental but represent a structural shift in how supply chain software is delivered and consumed, positioning Manhattan to capture premium pricing and higher expansion revenue as AI transitions from experimental pilots to production-scale subscriptions, with management indicating that monetization will meaningfully impact results starting in 2027, suggesting current valuations may underestimate the long-term AI-driven TAM expansion.
The company's financial performance reflects underlying strength that is being underappreciated by the market, particularly in the durability of its renewal portfolio and the quality of its bookings, as RPO grew 24% year-over-year to $2.35 billion with contract durations averaging 5.5 to 6 years, ensuring that 38% of RPO will convert to revenue over the next 24 months, providing substantial visibility and reducing near-term revenue volatility. Despite macroeconomic headwinds, Manhattan delivered 24% cloud revenue growth and 13% growth excluding license and maintenance attrition, driven by strong execution, lower-than-modeled churn, and catch-up overage fees, with management conservatively excluding these one-time benefits from full-year guidance, implying potential upside if renewal retention continues to outperform expectations. The shift toward fixed-fee and outcome-based services engagements, powered by AI automation and forward-deployed engineers, is transforming the services mix from time-and-material to higher-margin, scalable delivery models, which should improve services profitability over time even as revenue growth moderates. Furthermore, the company's zero-debt balance sheet, $226 million in cash, and $350 million remaining in share repurchase authorization provide significant financial flexibility to accretively deploy capital, whether through continued buybacks, strategic acquisitions in adjacent AI or logistics software domains, or increased investment in go-to-market initiatives that have already demonstrated ROI through increased deal volume and new logo acquisition. This financial resilience, combined with accelerating cloud transition and AI monetization, supports a case for multiple expansion as the market begins to recognize Manhattan not just as a WMS provider but as a platform-native AI orchestrator for the entire supply chain commerce value chain.
Manhattan Associates is strategically positioned to capitalize on the accelerating adoption of Agentic AI through its Active Agents offering, which leverages a unique architectural advantage that embeds AI directly into operational workflows without requiring external data lakes or complex integration, as evidenced by early pilot customers reporting double-digit reductions in loading times and up to 75% fewer exceptions requiring triage in food distribution operations. The company's Agent Foundry enables rapid development of custom agents tailored to specific operational pain points, such as dynamic resource allocation in retail distribution centers, which improved order cycle times by 5%, and this capability is being scaled through forward-deployed engineers drawn from R&D and services teams, creating a defensible moat against competitors who lack such embedded technical expertise. With over 55% of new cloud bookings coming from net new logos and strong win rates consistently above 70%, Manhattan is expanding beyond its traditional retail base into high-growth verticals like life sciences, industrial, and third-party logistics, where unified warehouse and transportation solutions are delivering outsized value by reducing integration complexity and accelerating time to value. The recent launch of Manhattan Marketplace and Solution Design Studio further amplifies this edge by creating an open, collaborative ecosystem where partners and customers can co-develop and deploy AI-powered extensions and configurations using natural language blueprints, significantly lowering barriers to adoption and extending the platform's utility beyond core supply chain functions into broader commerce execution. These innovations are not incremental but represent a structural shift in how supply chain software is delivered and consumed, positioning Manhattan to capture premium pricing and higher expansion revenue as AI transitions from experimental pilots to production-scale subscriptions, with management indicating that monetization will meaningfully impact results starting in 2027, suggesting current valuations may underestimate the long-term AI-driven TAM expansion.
The company's financial performance reflects underlying strength that is being underappreciated by the market, particularly in the durability of its renewal portfolio and the quality of its bookings, as RPO grew 24% year-over-year to $2.35 billion with contract durations averaging 5.5 to 6 years, ensuring that 38% of RPO will convert to revenue over the next 24 months, providing substantial visibility and reducing near-term revenue volatility. Despite macroeconomic headwinds, Manhattan delivered 24% cloud revenue growth and 13% growth excluding license and maintenance attrition, driven by strong execution, lower-than-modeled churn, and catch-up overage fees, with management conservatively excluding these one-time benefits from full-year guidance, implying potential upside if renewal retention continues to outperform expectations. The shift toward fixed-fee and outcome-based services engagements, powered by AI automation and forward-deployed engineers, is transforming the services mix from time-and-material to higher-margin, scalable delivery models, which should improve services profitability over time even as revenue growth moderates. Furthermore, the company's zero-debt balance sheet, $226 million in cash, and $350 million remaining in share repurchase authorization provide significant financial flexibility to accretively deploy capital, whether through continued buybacks, strategic acquisitions in adjacent AI or logistics software domains, or increased investment in go-to-market initiatives that have already demonstrated ROI through increased deal volume and new logo acquisition. This financial resilience, combined with accelerating cloud transition and AI monetization, supports a case for multiple expansion as the market begins to recognize Manhattan not just as a WMS provider but as a platform-native AI orchestrator for the entire supply chain commerce value chain.
Despite the enthusiasm around Active Agents, Manhattan Associates faces significant execution risks in monetizing its AI offerings, as the current reliance on 90-day paid pilots introduces uncertainty around conversion rates to long-term subscriptions, with management admitting they are taking a conservative approach and expecting meaningful impact only in 2027, which suggests near-term AI revenue may remain immaterial relative to the $1.15 billion total revenue guidance for 2026, and the lack of disclosed pricing uplifts or standard contract durations for agent subscriptions creates opacity around potential ARR contribution and margin sustainability, especially if customers resist paying premiums for AI features that are increasingly being bundled for free by larger cloud platforms and ERP vendors seeking to retain market share. The company's dependence on forward-deployed engineers (FDEs) to deliver custom agents via Agent Foundry introduces scalability constraints, as this model relies on highly specialized talent drawn from R&D and services teams, and while Manhattan has added ~120 FDEs with another ~70 pending, this approach may not be efficiently scalable across a broad customer base without incurring significant labor costs or diluting R&D focus, potentially undermining the very automation benefits the AI agents are meant to deliver. Furthermore, the early success stories cited—such as a 5% improvement in order cycle times or reduced loading times—while operationally meaningful, may not translate to sufficiently compelling ROI to drive widespread, rapid adoption at scale, particularly among cost-conscious mid-market customers who may prefer to wait for proven, standardized AI outcomes rather than invest in custom agent development.
Manhattan's growth is increasingly dependent on capturing share from competitors through displacement wins, particularly in ERP-upgrade scenarios and against vendors that have lagged in cloud and platform unification investments, as acknowledged by management when citing off-the-chart win rates against competitors' incumbents, which suggests a significant portion of recent bookings strength may be driven by temporary, cyclical displacement opportunities rather than organic, structural demand growth, and once the wave of legacy system modernizations subsides, the company could face a natural slowdown in new logo acquisition unless it can successfully expand into entirely new use cases or geographies beyond its current footprint in retail, grocery, and logistics. The services business, while showing resilience with 4% year-over-year growth in Q1, remains vulnerable to macroeconomic volatility, as customer nervousness could delay or shrink discretionary projects, and the shift toward fixed-fee engagements, while potentially margin-accretive long-term, introduces execution risk if project scoping is inaccurate or if AI-driven automation fails to deliver predicted efficiency gains, leading to underutilized FDEs or margin pressure. Additionally, the company's guidance assumes only a 1% FX tailwind for the full year, but with significant operations in Europe and APAC—where the largest Q1 deals originated—and ongoing currency fluctuations, there is risk that FX impacts could exceed expectations, particularly if the dollar weakens less than anticipated or if hedging strategies prove insufficient, thereby pressuring reported revenue growth in constant currency terms. Finally, the aggressive share repurchase program, with $150 million bought back in Q1 alone and $350 million remaining, while boosting EPS in the short term, may signal a lack of higher-return internal investment opportunities and could constrain financial flexibility if unexpected macroeconomic downturns or increased R&D demands for AI innovation arise, potentially forcing a trade-off between shareholder returns and long-term competitive positioning.
Despite the enthusiasm around Active Agents, Manhattan Associates faces significant execution risks in monetizing its AI offerings, as the current reliance on 90-day paid pilots introduces uncertainty around conversion rates to long-term subscriptions, with management admitting they are taking a conservative approach and expecting meaningful impact only in 2027, which suggests near-term AI revenue may remain immaterial relative to the $1.15 billion total revenue guidance for 2026, and the lack of disclosed pricing uplifts or standard contract durations for agent subscriptions creates opacity around potential ARR contribution and margin sustainability, especially if customers resist paying premiums for AI features that are increasingly being bundled for free by larger cloud platforms and ERP vendors seeking to retain market share. The company's dependence on forward-deployed engineers (FDEs) to deliver custom agents via Agent Foundry introduces scalability constraints, as this model relies on highly specialized talent drawn from R&D and services teams, and while Manhattan has added ~120 FDEs with another ~70 pending, this approach may not be efficiently scalable across a broad customer base without incurring significant labor costs or diluting R&D focus, potentially undermining the very automation benefits the AI agents are meant to deliver. Furthermore, the early success stories cited—such as a 5% improvement in order cycle times or reduced loading times—while operationally meaningful, may not translate to sufficiently compelling ROI to drive widespread, rapid adoption at scale, particularly among cost-conscious mid-market customers who may prefer to wait for proven, standardized AI outcomes rather than invest in custom agent development.
Manhattan's growth is increasingly dependent on capturing share from competitors through displacement wins, particularly in ERP-upgrade scenarios and against vendors that have lagged in cloud and platform unification investments, as acknowledged by management when citing off-the-chart win rates against competitors' incumbents, which suggests a significant portion of recent bookings strength may be driven by temporary, cyclical displacement opportunities rather than organic, structural demand growth, and once the wave of legacy system modernizations subsides, the company could face a natural slowdown in new logo acquisition unless it can successfully expand into entirely new use cases or geographies beyond its current footprint in retail, grocery, and logistics. The services business, while showing resilience with 4% year-over-year growth in Q1, remains vulnerable to macroeconomic volatility, as customer nervousness could delay or shrink discretionary projects, and the shift toward fixed-fee engagements, while potentially margin-accretive long-term, introduces execution risk if project scoping is inaccurate or if AI-driven automation fails to deliver predicted efficiency gains, leading to underutilized FDEs or margin pressure. Additionally, the company's guidance assumes only a 1% FX tailwind for the full year, but with significant operations in Europe and APAC—where the largest Q1 deals originated—and ongoing currency fluctuations, there is risk that FX impacts could exceed expectations, particularly if the dollar weakens less than anticipated or if hedging strategies prove insufficient, thereby pressuring reported revenue growth in constant currency terms. Finally, the aggressive share repurchase program, with $150 million bought back in Q1 alone and $350 million remaining, while boosting EPS in the short term, may signal a lack of higher-return internal investment opportunities and could constrain financial flexibility if unexpected macroeconomic downturns or increased R&D demands for AI innovation arise, potentially forcing a trade-off between shareholder returns and long-term competitive positioning.