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Supply chain optimization software maker Manhattan Associates (NASDAQ:MANH) reported Q1 CY2025 results exceeding the market’s revenue expectations , with sales up 3.2% year on year to $262.8 million. The company’s full-year revenue guidance of $1.07 billion at the midpoint came in 0.7% above analysts’ estimates. Its non-GAAP profit of $1.19 per share was 15.4% above analysts’ consensus estimates.

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Manhattan Associates (MANH) Q1 CY2025 Highlights:

• Revenue: $262.8 million vs analyst estimates of $256.8 million (3.2% year-on-year growth, 2.3% beat)

• Adjusted EPS: $1.19 vs analyst estimates of $1.03 (15.4% beat)

• Adjusted Operating Income: $91.27 million vs analyst estimates of $79.27 million (34.7% margin, 15.1% beat)

• The company reconfirmed its revenue guidance for the full year of $1.07 billion at the midpoint

• Management raised its full-year Adjusted EPS guidance to $4.59 at the midpoint, a 2% increase

• Operating Margin: 24%, up from 22.6% in the same quarter last year

• Free Cash Flow Margin: 28.3%, down from 39.7% in the previous quarter

• Billings: $279.9 million at quarter end, in line with the same quarter last year

• Market Capitalization: $10.44 billion

StockStory’s Take

Manhattan Associates’ Q1 results were shaped by continued momentum in its cloud-based supply chain solutions and a smooth leadership transition, with Eric Clark stepping in as CEO. Management highlighted robust demand for cloud products, particularly through new customer wins and expanded cross-selling, while also noting that services revenue held up despite cautious customer spending in a challenging macro environment.

Looking ahead, the company maintained its full-year revenue guidance and increased its adjusted EPS outlook. Management cited ongoing investments in sales and marketing, as well as product simplification initiatives, as key drivers for future growth. CEO Eric Clark emphasized, “We are investing in sales specialists around many of our new products” to capture additional market share and drive adoption, even as the industry navigates external uncertainties like tariffs.

Key Insights from Management’s Remarks

Manhattan Associates attributed its Q1 performance to strong growth in cloud subscription revenue and steady demand across diverse industry verticals. Management focused on expanding its customer base and introducing new products to address evolving market needs.

• Cloud Revenue Expansion: The company experienced 21% growth in cloud revenue, driven by demand from both new and existing customers, with about half of new cloud bookings attributed to net-new clients.

• Diverse Industry Penetration: Manhattan’s customer wins in the quarter spanned retail, grocery, life sciences, and logistics, supporting a balanced performance and reducing reliance on any single sector.

• New Product Launch: The introduction of Enterprise Promise and Fulfill (EPF) targeted B2B order optimization, addressing customer demand for more direct-to-consumer-like fulfillment capabilities in complex supply chains.

• AI and Automation Initiatives: The company expanded its Agentic AI offerings, notably Manhattan Active Maven and Manhattan Assist, to automate customer service tasks and simplify supply chain management, with new features enabling broader deployment across client operations.

• Leadership Transition: The CEO transition from Eddie Capel to Eric Clark was described as smooth, with both leaders focusing on continuity and ongoing product innovation, positioning the company for long-term growth.