Forrester Research (NASDAQ:FORR) Releases Earnings Results, Beats Estimates By $0.13 EPS

Forrester Research (NASDAQ:FORR) announced its quarterly earnings data on Thursday. The technology company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.13, FiscalAI reports. The business had revenue of $100.23 million during the quarter, compared to analyst estimates of $96.91 million. Forrester Research had a positive return on equity of 6.65% and a negative net margin of 13.74%. 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 Down 5.1%

Shares of FORR stock traded down $0.52 on Thursday, hitting $9.74. The company’s stock had a trading volume of 108,942 shares, compared to its average volume of 125,264. 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 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. Forrester Research has a fifty-two week low of $4.88 and a fifty-two week high of $11.57. The firm’s fifty day moving average price is $8.25 and its 200-day moving average price is $7.09.

Institutional Trading of Forrester Research

Several large investors have recently made changes to their positions in FORR. Vanguard Group Inc. raised its stake in shares of Forrester Research by 0.6% in the 3rd quarter. Vanguard Group Inc. now owns 649,765 shares of the technology company’s stock valued at $6,888,000 after acquiring an additional 3,795 shares in the last quarter. Hotchkis & Wiley Capital Management LLC boosted its position in Forrester Research by 20.3% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 333,979 shares of the technology company’s stock worth $3,540,000 after purchasing an additional 56,249 shares during the period. Geode Capital Management LLC grew its holdings in Forrester Research by 2.0% during the fourth quarter. Geode Capital Management LLC now owns 298,429 shares of the technology company’s stock valued at $2,423,000 after purchasing an additional 5,793 shares during the last quarter. State Street Corp grew its holdings in Forrester Research by 1.5% during the fourth quarter. State Street Corp now owns 255,745 shares of the technology company’s stock valued at $2,077,000 after purchasing an additional 3,778 shares during the last quarter. Finally, Federated Hermes Inc. raised its position in shares of Forrester Research by 1.0% in the second quarter. Federated Hermes Inc. now owns 252,810 shares of the technology company’s stock valued at $2,503,000 after purchasing an additional 2,446 shares during the period. Institutional investors own 55.20% of the company’s stock.

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

Analysts Set New Price Targets

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

About Forrester Research

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.