Forrester Research (NASDAQ:FORR) Announces Earnings Results

Forrester Research (NASDAQ:FORR) released its quarterly earnings results on Thursday. The technology company reported $0.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.13, FiscalAI reports. The company had revenue of $100.23 million during the quarter, compared to analysts’ expectations of $96.91 million. Forrester Research had a negative net margin of 13.74% and a positive return on equity of 6.65%. Forrester Research updated its FY 2026 guidance to 0.720-0.820 EPS.

Here are the key takeaways from Forrester Research’s conference call:

• Second-quarter revenue fell 10% to $100.2 million, with research revenue down 8% and non-CV businesses down 15%. Operating income declined 24% and EPS fell 22% year over year.
• Contract value decreased 3% for the second consecutive quarter, while wallet retention was flat and client retention declined one point sequentially; management expects CV growth by year-end.
• Forrester maintained its full-year 2026 guidance of $350 million-$360 million in revenue, 6%-6.5% operating margins, and $0.72-$0.82 in EPS, citing improving retention, a growing pipeline, and planned product launches.
• Forrester AI adoption accelerated: users rose 69% year over year, prompts increased 105%, and AI became the dominant way Forrester Decisions clients accessed research. Forrester AI Access has generated approximately $10 million in bookings since its launch.
• The company restarted share repurchases, buying approximately $1 million of stock in the quarter and planning to accelerate repurchases during the second half; it ended the quarter with more than $130 million in cash and $35 million in debt.

Forrester Research Stock Performance

NASDAQ:FORR traded down $0.52 during trading hours on Thursday, hitting $9.74. 108,942 shares of the company traded hands, compared to its average volume of 125,264. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.33. Forrester Research has a twelve month low of $4.88 and a twelve month high of $11.57. The firm has a 50-day moving average of $8.25 and a 200 day moving average of $7.09. The stock has a market capitalization of $189.05 million, a price-to-earnings ratio of -3.44, a P/E/G ratio of 1.95 and a beta of 0.97.

Analyst Ratings Changes

Separately, Weiss Ratings raised Forrester Research from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Reduce”.

Key Forrester Research News

Here are the key news stories impacting Forrester Research this week:

• Positive Sentiment: Forrester earned $0.40 per share, exceeding the $0.27 consensus estimate, while revenue of $100.23 million also surpassed expectations of $96.91 million. Forrester Research Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year 2026 EPS guidance of $0.72-$0.82 is above the prior consensus estimate of $0.69, supporting the earnings outlook. Revenue guidance of $350 million-$360 million broadly brackets the $356.5 million consensus. Forrester Research Reports 2026 Second-Quarter Financial Results
• Positive Sentiment: Management cited accelerated adoption of Forrester AI and stabilization in key business metrics, potentially providing a growth catalyst as the company navigates the broader AI transition. Forrester Research Reports 2026 Second-Quarter Financial Results
• Neutral Sentiment: Director Neil Bradford retired from the board on July 28. The change occurs during Forrester’s AI-focused transition, but no immediate financial impact was disclosed. Forrester Announces Board Change Amid AI Transition
• Negative Sentiment: Contract value fell 3% year over year to $283.2 million, signaling continued pressure on recurring business and potentially limiting the durability of the earnings beat. Quarterly EPS also declined from $0.51 a year earlier, while the company still posted a negative net margin of 13.74%. Forrester Second-Quarter Financial Results

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Jane Street Group LLC raised its position in shares of Forrester Research by 7.8% during the second quarter. Jane Street Group LLC now owns 20,741 shares of the technology company’s stock valued at $205,000 after buying an additional 1,494 shares during the last quarter. Engineers Gate Manager LP grew its position in Forrester Research by 9.7% during the second quarter. Engineers Gate Manager LP now owns 19,626 shares of the technology company’s stock worth $194,000 after buying an additional 1,728 shares in the last quarter. Federated Hermes Inc. increased its stake in Forrester Research by 1.0% during the second quarter. Federated Hermes Inc. now owns 252,810 shares of the technology company’s stock valued at $2,503,000 after acquiring an additional 2,446 shares during the period. Squarepoint Ops LLC increased its stake in Forrester Research by 9.7% during the fourth quarter. Squarepoint Ops LLC now owns 31,145 shares of the technology company’s stock valued at $253,000 after acquiring an additional 2,752 shares during the period. Finally, State Street Corp raised its holdings in Forrester Research by 1.5% in the 4th quarter. State Street Corp now owns 255,745 shares of the technology company’s stock valued at $2,077,000 after acquiring an additional 3,778 shares in the last quarter. Institutional investors own 55.20% of the company’s stock.

Forrester Research Company Profile

Forrester Research, Inc is a leading global research and advisory firm that provides insights and guidance to business and technology leaders. Founded in 1983 and headquartered in Cambridge, Massachusetts, the company offers a wide range of services designed to help clients understand market dynamics, evaluate technology investments and develop customer-centric strategies. Forrester’s core offerings include syndicated research reports, bespoke advisory services, consulting engagements and data-driven analytics.

Through its extensive research practice, Forrester produces in-depth analyses of emerging technologies, industry trends and best practices across sectors such as information technology, marketing, customer experience and digital business.