Manhattan Associates reported total revenue growth of three% year over year for the second quarter of 2025 [1].
The results are critical as the company seeks to justify its premium market valuation through consistent growth in its cloud-based offerings [2].
Total revenue for the period reached $272 million [1]. The company attributed this increase to a steady demand for its supply chain solutions. "Total revenue was up 3% year over year, driven by strong demand for our supply chain solutions," CEO John Gaynor said [1].
Growth was most pronounced in the company's cloud sector. Cloud revenue rose 22% year over year to reach $100 million [1]. This shift toward cloud services represents a core part of the company's current strategy to modernize logistics, and warehouse management systems.
"Cloud revenue was up 22% year over year, reflecting continued growth in our cloud offerings," CFO Michael J. O’Brien said [1].
Following these results, management raised the full-year guidance for the company [1]. This move indicates confidence in the remaining quarters of the fiscal year, a signal to investors that the momentum in cloud adoption is likely to persist.
The company, traded on the NASDAQ under the ticker MANH, continues to navigate a competitive landscape in supply chain software [2]. The reliance on cloud migration as a primary growth engine allows the firm to transition from legacy licensing models to recurring revenue streams [1].
“Cloud revenue was up 22% year over year, reflecting continued growth in our cloud offerings”
The acceleration of cloud revenue relative to total revenue suggests that Manhattan Associates is successfully migrating its customer base to a SaaS model. While overall growth remains modest at 3%, the 22% surge in cloud earnings provides the recurring revenue stability that investors typically require to support a premium stock valuation.
