Manhattan Associates reported record second-quarter 2025 revenue of $272.4 million, a 2.7% increase year-over-year, exceeding Wall Street expectations. GAAP diluted earnings per share for Q2 2025 was $0.93, up from $0.85 in Q2 2024, and non-GAAP adjusted diluted EPS was $1.31, compared to $1.18 in Q2 2024, beating consensus estimates by 16.2%. Cloud revenue surged by 22% in Q2 2025 to $100.4 million, and Remaining Performance Obligations (RPO) surpassed the $2 billion milestone, increasing 26% over the prior year.
The company raised its full-year 2025 guidance, with total revenue now expected between $1.071 billion and $1.075 billion, representing 3% growth. Adjusted operating margin is projected between 34.8% and 35.3%, and adjusted EPS is raised to $4.76 to $4.84. This updated guidance reflects confidence in business fundamentals despite a challenging global macro environment.
While cloud subscriptions showed robust growth, services revenue declined by 6% in Q2 2025 to $128.9 million, primarily due to customer budgetary constraints shifting services work to future periods. The company also recorded an additional $3.0 million expense for an unusual health insurance claim in Q2 2025, which is excluded from adjusted non-GAAP results. Manhattan maintains a strong balance sheet with $230.6 million in cash and no debt, supporting R&D and share repurchases, with $149.6 million of common stock repurchased in the first six months of 2025.
CEO Eric Clark highlighted cloud platform leadership and the unified cloud platform's ability to increase leadership advantage, expand the addressable market, and drive optimal customer results. The company's consistent win rates against major competitors and a solid pipeline support its optimistic outlook. The surpassing of the $2 billion RPO milestone provides significant long-term revenue visibility.
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