Why Manhattan Associates Stock Blasted Nearly 6% Higher on Wednesday
Key Points
It particularly did well with subscription revenue, which rose by 24% year over year.
Management is anticipating it will post more growth numbers in the coming quarters.
Manhattan Associates (NASDAQ: MANH) had no problem getting over the hump on Hump Day. Investors piled into the stock of the supply chain management software specialist following its latest earnings release, and drove the shares to a daily gain of almost 6%.
A good start to 2026
Manhattan's first-quarter results, published just after market close on Tuesday, showed that the company's revenue for the period was just over $282 million. That was 7% higher year over year. The growth was driven mainly by a robust (24%) increase in cloud subscription revenue to $117 million.
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Meanwhile, net income not under generally accepted accounting principles (GAAP) rose by nearly 2% to slightly under $74.3 million ($1.24 per share).
That meant a convincing pair of beats for the highly specialized tech company. The consensus analyst estimates for revenue and non-GAAP net income were a bit below $274 million and $1.11 per share, respectively.
In its earnings release, Manhattan cited "solid and broad-based" demand for its solutions as a key reason for its better-than-expected performance.
Marching forward confidently
Manhattan quoted CEO Eric Clark as saying of the company's future that "With a strong pipeline
across our product suite, numerous opportunities to drive growth, and our unmatched ability to
consistently deliver leading innovation to the supply chain commerce universe, we are optimistic
about our long-term growth opportunity."
The company also proffered guidance for the entirety of 2026. It's currently modeling annual revenue of nearly $1.15 billion to almost $1.16 billion, which would be an improvement of at least 6% on the 2025 result. Adjusted net income per share is anticipated to be $5.29 to $5.37, representing growth of 5% at a minimum.
To me, Manhattan is a solid operator in its niche. With the increasing sophistication of global commerce, it's becoming increasingly necessary for businesses of any size beyond mom-and-pop to get a handle on their supply chains. This company keeps proving effective at lending a hand with this, so its stock is definitely one to consider owning.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Manhattan Associates. The Motley Fool has a disclosure policy.