Manhattan Associates Surpasses Expectations in Q3 Amid Accelerating Cloud Transition

Manhattan Associates delivered a decisive beat on both revenue and earnings for the third quarter of 2025, surpassing analyst expectations across key metrics. Revenue reached $142.3 million, a 12% year-over-year increase, with cloud revenue growing 38% and representing 54% of total revenue—up from 47% in the same period last year. Adjusted EBITDA rose to $48.6 million, reflecting improved operational efficiency and a growing shift to subscription-based models. The results come in stark contrast to Barclays’ recent downgrade and price target reduction, which had questioned the company’s ability to sustain growth amid increasing competition and macroeconomic headwinds. Manhattan’s ability to exceed consensus forecasts signals strong execution in its cloud transformation, particularly in supply chain and logistics software, where enterprise clients are accelerating digital infrastructure upgrades. Investors reacted positively, with the stock gaining over 7% in after-hours trading. The momentum highlights growing confidence in Manhattan Associates as a key player in the enterprise cloud ecosystem. The company has also announced an expanded partnership with a major North American logistics provider, expected to drive incremental cloud deployment in early 2026. The broader implications extend beyond Manhattan Associates, signaling renewed investor appetite for software firms with clear cloud transition narratives and recurring revenue streams. As enterprises continue to modernize operations, solutions with scalable, subscription-driven models are gaining favor over legacy on-premise systems.