Forrester Research (NASDAQ:FORR) Posts Earnings Results

Forrester Research (NASDAQ:FORR) posted its quarterly earnings data on Thursday. The technology company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.14, FiscalAI reports. The business had revenue of $100.23 million for the quarter, compared to analysts’ expectations of $96.91 million. Forrester Research had a positive return on equity of 6.09% and a negative net margin of 11.17%. 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 Trading Up 18.1%

FORR stock traded up $1.76 during trading on Friday, reaching $11.50. 233,695 shares of the stock traded hands, compared to its average volume of 125,555. The firm has a market capitalization of $223.24 million, a PE ratio of -5.11, a P/E/G ratio of 1.86 and a beta of 0.97. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.92 and a quick ratio of 0.92. The business’s 50 day moving average price is $8.35 and its 200-day moving average price is $7.12. Forrester Research has a 52-week low of $4.88 and a 52-week high of $11.75.

Analyst Ratings Changes

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

Key Headlines Impacting Forrester Research

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

• Positive Sentiment: Forrester reported second-quarter EPS of $0.40, well above the analyst consensus of $0.27. Revenue of $100.23 million also exceeded expectations of $96.91 million, supporting the stock. Forrester Research Reports 2026 Second-Quarter Financial Results
• Positive Sentiment: The company maintained its 2026 revenue outlook of $350 million to $360 million while projecting EPS of $0.72 to $0.82, above the $0.69 consensus estimate. The improved earnings outlook suggests margin or cost-management benefits despite limited revenue growth. Forrester targets 2026 EPS of $0.72 to $0.82 while maintaining $350M-$360M revenue outlook
• Positive Sentiment: Management cited accelerated adoption of Forrester AI and stabilization in key operating metrics, providing a potential growth catalyst as the company transitions its offerings toward artificial intelligence.
• Neutral Sentiment: Director Neil Bradford retired from the board on July 28. The change comes amid Forrester’s AI transition but was not presented as a change to the company’s financial outlook. Forrester Research Announces Board Change Amid AI Transition
• Negative Sentiment: Underlying demand remains soft: second-quarter revenue was approximately $100 million and contract value fell 3% year over year to $283.2 million. The revenue outlook’s midpoint is also slightly below the $356.5 million analyst consensus, limiting the upside from the earnings beat. Forrester Q2 Revenue Drops to c.$100 Million

Hedge Funds Weigh In On Forrester Research

Several hedge funds and other institutional investors have recently modified their holdings of FORR. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Forrester Research during the 1st quarter worth about $149,000. Jane Street Group LLC purchased a new position in Forrester Research in the first quarter valued at approximately $178,000. Arrowstreet Capital Limited Partnership purchased a new position in Forrester Research in the second quarter valued at approximately $801,000. Marshall Wace LLP acquired a new position in Forrester Research during the second quarter valued at approximately $131,000. Finally, Federated Hermes Inc. lifted its position 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 buying an additional 2,446 shares in the last quarter. 55.20% of the stock is owned by institutional investors and hedge funds.

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.