Forrester Research (NASDAQ:FORR) Releases Earnings Results, Beats Estimates By $0.04 EPS

Forrester Research (NASDAQ:FORR) announced its earnings results on Thursday. The technology company reported $0.24 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04, FiscalAI reports. The business had revenue of $86.11 million during the quarter, compared to analyst estimates of $81.78 million. Forrester Research had a negative net margin of 11.17% and a positive return on equity of 6.19%.

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

• Q3 remained challenging operationally: revenue fell 9% year over year to $86.1 million, consulting revenue declined 31%, and adjusted EPS dropped 35% to $0.24. Contract value decreased 3.5%, although this was an improvement from the 7% decline a year earlier.
• Forrester issued a wider year-end contract value outlook ranging from a 2% decline to 2% growth, citing delayed U.S. federal deals, complex enterprise sales cycles, and the significant contribution of fourth-quarter bookings. Management said these factors create uncertainty but maintained confidence in achieving sustained growth in 2027.
• Retention and AI engagement improved: wallet retention rose to 89% and client retention to 78%, while Forrester AI prompts increased 142% year over year and users grew 65%. AI Access represented approximately 4% of contract value and is expected to reach about 5% by year-end, with higher margins than traditional offerings.
• Forrester launched Team Solutions and AI Access Plus and expanded its “Where You Work” strategy to Anthropic’s Claude, creating additional upsell and distribution opportunities. The company also raised the low end of full-year adjusted EPS guidance from $0.72 to $0.77 and repurchased approximately $10 million of stock during the quarter.

Forrester Research Stock Down 2.7%

NASDAQ:FORR traded down $0.33 on Friday, reaching $11.85. The stock had a trading volume of 51,898 shares, compared to its average volume of 121,888. The stock has a market cap of $225.62 million, a P/E ratio of -5.27, a price-to-earnings-growth ratio of 2.26 and a beta of 0.99. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.29. The company has a 50-day moving average of $11.82 and a 200 day moving average of $8.59. Forrester Research has a 12-month low of $4.88 and a 12-month high of $12.75.

Key Forrester Research News

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

• Positive Sentiment: Adjusted EPS and revenue exceeded expectations, while management said expense control and business conditions are stabilizing. Forrester also raised the low end of its 2026 earnings guidance and highlighted ongoing share repurchases, which could support the stock. Q3 2026 Earnings Call Transcript
• Positive Sentiment: The company generated $2.4 million of operating profit and ended the quarter with $59.5 million in cash, providing financial flexibility despite weak top-line trends. Third-Quarter 2026 Financial Results
• Neutral Sentiment: Contract value fell 3.5% to $281.9 million, suggesting demand may be stabilizing but has not yet returned to growth. Forrester Continues Revenue Slide
• Negative Sentiment: Gross profit fell 8.8% and operating profit dropped 46.6% year over year. The GAAP net loss was wider, and operating cash flow was negative while capital spending totaled $12 million. Q3 2026 Earnings Results
• Negative Sentiment: Recent insider activity consisted of sales rather than purchases, while more institutions reduced positions than added shares—additional signals that investor conviction remains cautious.

Insider Activity at Forrester Research

In other news, insider Ryan Darrah sold 5,000 shares of Forrester Research stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $11.78, for a total transaction of $58,900.00. Following the transaction, the insider directly owned 27,244 shares in the company, valued at approximately $320,934.32. This trade represents a 15.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 40.70% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on FORR shares. Weiss Ratings restated a “sell (d-)” rating on shares of Forrester Research in a research note on Monday. Wall Street Zen raised shares of Forrester Research from a “hold” rating to a “buy” rating in a research note on Saturday, August 29th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Forrester Research has a consensus rating of “Reduce”.

Forrester Research Company Profile

Forrester Research, Inc is a global research and advisory firm that provides business and technology leaders with insights, guidance and tools to support strategic decision-making. The company serves professionals across areas including technology management, marketing, customer experience, sales and product development.

Forrester’s offerings include syndicated research, proprietary data and analysis, consulting services, advisory support, executive peer exchanges, events and subscription-based access to its research platform.