Manhattan Associates Reports 25% Cloud Revenue Growth Amid $2.5 Billion Backlog
The supply chain software provider posted $580 million in first-half revenue as cloud subscriptions now represent 98% of total software sales.
Cloud Transformation Drives Growth
Manhattan Associates reported total revenue of $580.0 million for the six months ended June 30, 2026, with cloud subscriptions accounting for 42% of the overall revenue mix, according to the company's quarterly filing (10-Q filing, 2026-07-31). Cloud revenue reached $243.8 million in the first half, up 25% from $194.7 million in the prior-year period.
The Atlanta-based supply chain software provider, with an ~$11 billion market cap, disclosed that cloud revenue now represents approximately 98% of total software revenue, underscoring the near-complete transition from its legacy perpetual license model. In the second quarter alone, cloud subscriptions totaled $126.7 million, representing 26% year-over-year growth (10-Q filing, 2026-07-31).
Contracted Backlog Expands
The company's remaining performance obligations (RPO)—contracted revenue not yet recognized—reached approximately $2.5 billion as of June 30, 2026, a 23% increase from the prior year. Manhattan Associates noted that "over 99% of our RPO represent cloud native subscriptions with a non-cancelable term greater than one year" (10-Q filing, 2026-07-31).
During the first half of 2026, approximately 40% of total new non-cancelable cloud subscription value came from new customers, while 60% originated from the existing customer base. The company defines new customers as entities from which it has not recognized revenue in the past five years (10-Q filing, 2026-07-31).
Geographic Mix and Customer Base
The Americas segment generated 66% of total revenue in the first half, with 19% from EMEA and the remainder from APAC, Canada, and Latin America. International revenue totaled $198.9 million for the six months ended June 30, representing 34% of total revenue (10-Q filing, 2026-07-31).
Manhattan Associates employed approximately 4,100 people worldwide as of quarter-end, with offices spanning 13 countries including Australia, China, France, Germany, India, Japan, and the United Kingdom.
Legacy Revenue Declining as Expected
Maintenance revenue from legacy perpetual licenses totaled $61.1 million in the first half, representing 10% of total revenue. License revenue dropped to just $4.2 million, or 1% of total revenue, reflecting the ongoing shift to cloud-based subscription models. The company stated it "expect[s] maintenance revenues to decline as we continue to develop our cloud offerings, and be offset by additional cloud revenue" (10-Q filing, 2026-07-31).
Services revenue, including implementation and consulting, contributed $133.1 million in the second quarter, representing 45% of quarterly revenue.
Macro Concerns Persist
Despite solid results, Manhattan Associates acknowledged caution regarding global economic conditions. The company cited "macroeconomic uncertainty and global instability resulting from the military conflict involving the United States, Israel, and Iran and the ongoing war between Russia and Ukraine" as factors warranting vigilance (10-Q filing, 2026-07-31).
The filing noted that current sales cycles for large cloud subscriptions "could be extended" given the challenging macroeconomic environment, though the company emphasized that "demand for our solutions is solid" (10-Q filing, 2026-07-31).
MarginX data shows recent insider activity including sales by executives James Stewart Gantt (5,139 shares) and Eric Andrew Clark (1,000 shares). The company's next scheduled presentation is at Trimble Insight 2026 on September 27.
This article was generated by MarginX from the 10-Q filing on 2026-07-31. It is not investment advice.