Manhattan Associates’ analyst price target has been modestly reduced from approximately $231.64 to $225.27 as analysts cite seasonally softer performance obligations in Q3. However, they maintain confidence in ongoing cloud growth and an improving profit margin outlook.

Analyst Commentary

Recent analyst reports reveal a range of perspectives on Manhattan Associates following its Q3 performance. While some analysts remain constructive due to the company’s positioning and cloud momentum, others are slightly more cautious, citing short-term challenges and moderating growth expectations.

Bullish Takeaways

• Bullish analysts maintain confidence in the company’s long-term growth prospects, particularly citing expectations for cloud revenue growth to remain above 20%.
• Despite a modest pullback in the shares, there is an observed willingness among positive analysts to recommend buying on weakness. They cite anticipated reacceleration in remaining performance obligations in the coming years.
• The company’s cloud-native platform and ongoing ramp of AI enhancements are considered strong differentiators. Effective cross-selling into adjacent product areas such as warehouse and transportation management is seen as fueling market share gains.
• Analysts initiating coverage point to Manhattan Associates’ leading position in supply chain and omnichannel commerce software. Continued relevance is noted as customers seek to drive efficiency in dynamic market conditions.

Bearish Takeaways

• Bearish analysts highlight seasonally softer performance obligations and Q3 bookings trending lighter than prior quarters, which implies a need to closely watch the near-term growth trajectory.
• There is some concern that structural changes in the company’s services segment could necessitate a reset in medium-term growth expectations for services revenue.
• After a recent decline in shares due to slower growth and a miss versus fiscal 2026 outlook expectations, some analysts have moderated their stance. They now see limited further downside but less conviction for a near-term rebound.
• A softer outlook for certain metrics in Q4, particularly on the services side, remains a potential overhang for valuation and execution in the next reporting cycle.

What's in the News

• Manhattan Associates issued new full-year 2025 guidance, projecting revenue between $1,073 million and $1,077 million. The company expects a GAAP operating margin of 25.0% to 25.2% and GAAP EPS in the range of $3.43 to $3.45 (Key Developments).
• Between July 1 and September 30, 2025, the company repurchased 233,425 shares for a total of $49.9 million. Manhattan Associates has now completed the buyback of nearly 19.89% of its shares announced since 2017, amounting to $1,291.54 million (Key Developments).
• In October 2025, Manhattan Associates increased its share repurchase authorization by $100 million (Key Developments).

Valuation Changes

• The consensus analyst price target has decreased modestly from $231.64 to $225.27.
• The discount rate has edged down slightly from 8.44% to 8.41%.
• Revenue growth assumptions have risen fractionally, moving from 7.31% to 7.39%.
• Net profit margin has improved, now estimated at 23.36% compared to the previous 22.76%.
• The future P/E ratio has decreased to 53.01x from the prior 57.59x. This reflects adjustments in growth expectations and the valuation outlook.