Manhattan Associates (MANH) Stock Forecast & Price Target

Manhattan Associates reported a robust 11% year-over-year growth in total revenue when excluding license and maintenance revenue, signifying strong underlying business performance amid its cloud transition. The company achieved a significant increase in deferred revenue, rising 17% year-over-year to $279 million, and ended the quarter with total remaining performance obligations (RPO) of $1.78 billion, up 25% year-over-year, indicating a healthy future revenue pipeline. Furthermore, the firm anticipates new service implementation projects will steadily escalate throughout 2025, supporting a return to year-over-year growth while achieving cloud subscription revenue growth of 27% year-over-year, thus reinforcing a positive long-term outlook.

Manhattan Associates has experienced a notable decline in professional services growth, which reached only 0.3% year-over-year compared to a previous 19% growth rate, largely due to budgetary constraints faced by numerous customers. Additionally, the company’s calculated remaining performance obligations net revenue retention declined by 1% quarter-over-quarter to 110%, indicating potential revenue instability amid macroeconomic uncertainties. Furthermore, with both an increasing number of customers reducing planned service work and challenging conditions in retail trade, the outlook for future growth becomes increasingly risky.