Manhattan Associates: Initiation of Coverage- Surging Ahead with 22% Cloud Growth—Is This Just the Beginning?

Manhattan Associates delivered a robust performance in the second quarter of 2025, with financial results surpassing expectations. The company reported total revenue of $272 million, representing a 3% increase from the previous year. A key driver was the impressive 22% growth in cloud revenue, which reached $100 million. The company’s services revenue experienced a 6% decline, reflecting ongoing customer budget constraints and uncertainties in the macroeconomic environment. Despite this, the slight outperformance of services revenue indicates resilient execution by the company.