Manhattan Associates Cloud Revenue Accelerates to $127M (+26%), RPO Hits $2.47B

For SaaS and cloud businesses, Manhattan Associates’ second-quarter 2026 numbers are a masterclass in the subscription transition. Cloud revenue of $127 million, up 26% year-over-year, now forms the core growth engine, while RPO of $2.47 billion represents a massive booked but unrecognized revenue stream. The fact that over 40% of new cloud bookings stemmed from on-premise-to-cloud conversions demonstrates the long-tail opportunity in migrating legacy installed bases. Additionally, the deployment of forward-deployed engineers for agentic AI capabilities suggests a high-value upsell path that could drive ARPU expansion as customers adopt intelligent supply chain automation.

The second quarter of 2026 delivered starkly contrasting earnings reports from two businesses tied to the broader supply chain and consumer goods ecosystem. Manhattan Associates, a leading provider of supply chain and omnichannel software, extended its record streak with cloud revenue accelerating 26% to $127 million and remaining performance obligations (RPO) swelling 23% to $2.47 billion. Rocky Brands, the footwear manufacturer behind XTRATUF, Georgia, Rocky, and Lehigh, posted its strongest revenue growth since 2022 — a 12% jump to $118.4 million — yet underlying profitability was heavily distorted by a one-time tariff refund. Together, these reports paint a picture of an industrial landscape where digital transformation is winning investment dollars, while physical goods makers grapple with a volatile tariff regime and rising operational costs.

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Manhattan Associates, a leading provider of supply chain and omnichannel software, extended its record streak with cloud revenue accelerating 26% to $127 million and remaining performance obligations (RPO) swelling 23% to $2.47 billion.

Manhattan Associates’ results underscore a sustained shift toward cloud-first supply chain platforms. Cloud subscription sales now represent the primary growth engine, expanding 26% year-over-year, as more than 40% of new cloud bookings came from customers converting on-premises deployments to the Manhattan Active cloud suite. The company’s win rate above 70% and three consecutive quarters of record bookings indicate that enterprises — from retailers to logistics firms — are modernizing their order management, warehouse, and omnichannel systems at a brisk pace. CEO Eric Clark credited targeted investments in product specialists, partner channels, and agentic AI support engineers for the momentum. With RPO sitting at $2.47 billion, Manhattan has locked in nearly 2.5 times its annual trailing revenue, providing exceptional visibility into future cash flows.

Rocky Brands’ quarter was superficially robust but revealed significant operational headwinds. Net sales rose 12% to $118.4 million, driven by double-digit growth across the XTRATUF, Georgia, Rocky, and Lehigh safety business-to-business brands, alongside a 21.8% surge in retail sales to $36.2 million as direct-to-consumer (DTC) channels flourished. However, the reported gross margin of 51.4% was inflated by a $15 million net tariff benefit — comprising $18 million in IEEPA tariff refunds, partly offset by $3 million of current tariff costs. Excluding this non-recurring item, underlying gross margin shrank to just 38.7%, down significantly from the prior year, as the company faced higher expedited freight costs, promotional incentives to gain shelf space, changes in manufacturing and sourcing plans, and sales of discontinued styles. Adjusted earnings per share of $1.90, though a major jump from $0.55 a year earlier, would have been notably lower without the tariff windfall.