8-K: Forrester Research Q2 2026 Results Above Consensus, AI Adoption Grows

Forrester Research announced its second-quarter 2026 financial results, reporting revenue, margin, and EPS above consensus, with accelerated adoption of Forrester AI and a maintained 2026 guidance.

Summary

• Forrester Research reported second-quarter 2026 revenues of $100.2 million, a decrease from $111.7 million in the prior year's quarter.
• GAAP net income was $15.3 million ($0.78 per diluted share) for Q2 2026, up from $3.9 million ($0.20 per diluted share) in Q2 2025.
• Adjusted net income for Q2 2026 was $7.7 million ($0.40 per diluted share), compared to $9.8 million ($0.51 per diluted share) in Q2 2025.
• Contract value stood at $283.2 million, a 3% decrease year-over-year.
• The company is maintaining its full-year 2026 guidance and has restarted its stock buyback program.
• Forrester AI adoption is accelerating, and the company is focusing on enhancing AI capabilities for client integration.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive sentiment. While revenues are down year-over-year, the company exceeded consensus on key metrics, is maintaining guidance, and is seeing positive traction with AI adoption and client retention improvements. The restart of stock buybacks is also a positive signal.

Positives

• Delivered revenue, margin, and EPS above consensus for the second quarter.
• Accelerated adoption of Forrester AI is being observed.
• Ongoing stabilization of key metrics.
• Maintaining full-year 2026 guidance.
• Restarted stock buyback program with plans to accelerate repurchases.
• Client retention improved to 77% from 74% in the prior year.
• Wallet retention improved to 89% from 85% in the prior year.

Negatives

• Total revenues for the second quarter of 2026 were $100.2 million, down from $111.7 million in the comparable quarter of 2025.
• Contract value decreased by 3% year-over-year to $283.2 million.
• GAAP net loss for the six months ended June 30, 2026, was $6.6 million, compared to a net income of $3.9 million in the same period of 2025.
• Full-year 2026 GAAP revenue guidance indicates a decline of 11.8% to 9.3% versus the prior year.
• Full-year 2026 GAAP operating margin guidance is negative, ranging from -3.5% to -3.0%.
• Full-year 2026 GAAP diluted loss per share is projected between $0.84 to $0.74.

Risks

• Forrester's ability to retain and enrich memberships for its research products and services.
• Forrester's ability to fulfill existing or generate new consulting engagements and advisory services.
• Any adverse economic conditions, including from trade policies and tariffs, that result in a reduction in technology spending or demand for Forrester's products or services.
• The risks and challenges inherent in international business activities.
• The use of generative AI in Forrester's business and by Forrester's clients and competitors.
• Forrester's ability to offer new products and services.
• Forrester's dependence on key personnel and its ability to attract and retain professional staff.
• Competition and industry consolidation.

Future Outlook

Forrester is maintaining its full-year 2026 guidance, expecting total revenues between $350.0 million and $360.0 million (a decline of 11.8% to 9.3% year-over-year), an operating margin of approximately -3.5% to -3.0%, and a diluted loss per share of $0.84 to $0.74 on a GAAP basis. On an adjusted basis, the company anticipates an operating margin of 6.0% to 6.5% and adjusted diluted earnings per share of $0.72 to $0.82.

Management Comments

• "We delivered revenue, margin, and EPS above consensus, are seeing accelerated adoption of Forrester AI, and saw the ongoing stabilization of our metrics."
• "As a result, we are maintaining our guidance for 2026."
• "We have restarted our stock buyback program, and we plan to accelerate our repurchases."
• "We are reinventing the research and advisory business for the AI era through our technology innovation and partnerships."
• "In the second half of the year, we will follow our Microsoft Teams and Copilot integration efforts with additional new products and capabilities."
• "We will focus on enhancing the capabilities of Forrester AI to enable our clients to access our research insights effortlessly in their own work environments."
• "Our goal is to improve client retention and drive CV growth."

Industry Context

StockSavvy.ai notes that Forrester's focus on AI integration and reinvention of its research model aligns with broader industry trends where AI is a key driver of innovation and client engagement. The company's efforts to enhance AI capabilities and client access to insights are crucial for maintaining competitiveness in the evolving research and advisory landscape.

Management Changes

Stakeholder Impact

• Shareholders may benefit from the restarted stock buyback program, potentially increasing share value.
• Clients are expected to benefit from enhanced Forrester AI capabilities and easier access to research insights.
• Employees may be impacted by the company's strategic focus on AI and technology innovation, potentially leading to shifts in roles or required skills.

Next Steps

• Accelerate stock repurchases.
• Follow Microsoft Teams and Copilot integration efforts with additional new products and capabilities in the second half of the year.
• Focus on enhancing Forrester AI capabilities for client integration.
• Improve client retention and drive contract value growth.

Key Dates

Recommendation

The company is navigating a challenging revenue environment with a year-over-year decline, but its ability to exceed consensus on key metrics, maintain guidance, and demonstrate progress in AI adoption and client retention suggests a stable, albeit not rapidly growing, trajectory. The restart of share buybacks is a positive, but the overall revenue decline and negative GAAP full-year outlook warrant a cautious 'hold' rating until sustained growth is evident.

Keywords

research and advisory, AI, financial results, contract value, client retention, stock buyback, guidance, technology innovation