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Forrester Research (FORR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Jul 30, 2026

Source: earnings call transcript

Executive summary

Forrester Research Q2 FY26 — AI-Driven Engagement and Maintained Guidance

Forrester Research delivered Q2 FY26 results largely in line with expectations, driven by strong adoption of its AI offerings and continued product enhancements. Despite revenue declines across all segments, the company maintained its full-year guidance, expressing confidence in achieving CV growth by year-end. The focus remains on leveraging AI to deepen client engagement and improve retention, while strategically exiting lower-margin businesses.

Highlights

5

  • Consensus beats on revenue, margin, and EPS in Q2 FY26.

  • AI usage increased significantly, with total users up 33% QoQ and 69% YoY, and AI prompts up 58% QoQ and 105% YoY.

  • Forrester AI eclipsed indexed search as the dominant client interaction method for Forrester Decisions clients.

  • Client count increased by 10% to 1,770 clients, supported by new business growth.

  • Restarted stock buyback program, repurchasing approximately $1 million worth of shares in Q2, with over $76 million authorization remaining.

Concerns

7

  • Total revenue decreased 10% YoY to $100.2 million.

  • CV (Contract Value) decreased 3% in Q2, consistent with Q1.

  • Research revenue decreased 8% YoY, with research products down 7% and reprints down 12%.

  • Consulting business revenue decreased 15% YoY to $20 million, primarily due to the exit of strategy consulting.

  • Events business revenue decreased 17% YoY to $8.5 million.

  • Operating income decreased 24% YoY to $10.4 million, or 10.4% of revenue.

  • Net income decreased 21% YoY to $7.7 million, and EPS decreased 22% YoY to $0.40.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Revenue
$350M-$360M
high materiality
High
Full-year 2026 Research Revenue
mid-single-digit decline
medium materiality
Medium
Full-year 2026 Consulting Revenue
decline in the low 20s
medium materiality
Medium
Full-year 2026 Events Revenue
decline in the mid to high teens
medium materiality
Medium
Full-year 2026 Operating Margins
6% to 6.5%
high materiality
High
Full-year 2026 Interest Expenses
$2.3M
low materiality
High
Full-year 2026 Tax Rate
29%
low materiality
High
Full-year 2026 EPS
$0.72 to $0.82
high materiality
High
CV Growth
growth
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Research
Revenue decreased 8% compared to Q2 2025, with research products down 7% and reprints down 12%.
Research products revenue growth: down 7%Reprints revenue growth: down 12%
—down 8%——
Consulting
Revenue was $20 million, down 15% compared to the prior year, primarily due to the exit of the strategy consulting business. This decline was partially offset by strong performance in the advisory business, which grew 21%.
Advisory business growth: 21%Content marketing business growth: down 13%
$20Mdown 15%——
Events
Revenue was $8.5 million, representing a decrease of 17% compared to Q2 2025. Sponsorship and ticket revenues were impacted by a shift in event strategy towards shorter, more intimate formats.
$8.5Mdown 17%——

Product announcements

ProductTypeDetails
Forrester AI Agent for Microsoft Copilotlaunch
Forrester AI integration into Microsoft Teamsupdate
Updated Total Experience (TX) Scoreupdate

Capital programs

Cambridge headquarters build-out underway
Period spend: $18.2M
Spent to date: $18.2M
Funding: landlord reimbursements

Benefit:new headquarters facility

Capital expenditures of $18.2 million in H1 FY26 were associated with the ongoing build-out of the Cambridge headquarters. The company received $2.7 million in reimbursements from the landlord in H1 and expects an additional $14.5 million in H2 FY26. Remaining capital spending for the build-out is approximately $11 million.

Risks & headwinds

Market uncertainty Q2 FY26

drove consulting and events declines

Mitigation:Focus on achieving CV growth, product innovation, and retention improvements.

Exit of strategy consulting business Q2 FY26, exit by year-end

majority of 15% decline in consulting revenue

Mitigation:Allows salesforce to focus on expansion of CV offerings; existing backlog will be executed over coming quarters.

Government segment challenges Q2 FY26, turning point expected in Q3

area of challenges

Mitigation:Building up pipeline in AI access and executive leader seats; overall mood in Washington suggests a return to business.

What to watch in Q3 FY26

CV growth

by year-end 2026
Current 3% decline in Q2 FY26
Target growth by year-end

Why it matters

Achieving CV growth is a key strategic goal and indicator of business health and future revenue durability.

We remain on a path for CV growth by year-end.

Find out whether FORR delivers this. Inve re-checks your case every morning.

Q&A highlights

What gives management confidence in achieving CV growth by year-end, and what is the visibility for this expectation?

Management expressed confidence based on improved retention metrics, ongoing product innovation (AI Access, embedded solutions), increased pipeline, and momentum in tech research and international markets. The government segment is also showing signs of recovery.

“We've seen meaningful improvement in our retention metrics this year, as we talked about on the call. We've got a continued laser focus on retention and product innovation, and we expect those improvements to continue into the second half of the year. Pipeline continues to increase.”

asked by Anya Sildestrom · answered by Chris Finn

2 min read 5 chapters

Detailed narrative

Q2 Performance and Outlook

Forrester's Q2 FY26 performance was aligned with expectations, with consensus beats on revenue, margin, and EPS. Despite headwinds in consulting and events businesses, the company maintained its full-year guidance for revenue, margin, and EPS. Management expressed confidence in attaining its plan for the second half of the year and achieving CV growth by year-end 2026, driven by improved retention metrics and product innovation.

AI Research and Insights

The company produced hundreds of new AI research frameworks, models, and benchmarks in Q2. Notable reports included 'The AI CIO,' which envisions new roles for CIOs in architecting enterprise decision-making, governing autonomous systems, and managing AI costs. Another report revealed that 90% of top U.S. marketing agencies are using generative AI, primarily for productivity and cost efficiency, with Google, Adobe, and Anthropic as leading vendors.

Flagship Events and Total Experience Score

The B2B Summit North America, Forrester's largest yearly event, saw a 9% year-over-year increase in attendees, reaching 1,400, and influenced approximately $3.5 million in contract value bookings. Customer Experience forums in New York City, San Francisco, and Amsterdam were sold out. At these forums, Forrester unveiled an updated Total Experience (TX) score, which now includes employee experience alongside customer and brand experience to forecast growth potential.

Forrester AI Adoption and Integration

Forrester AI usage surged in Q2, with total users up 33% quarter-over-quarter and 69% year-over-year, and AI prompts increasing 58% quarter-over-quarter and 105% year-over-year. Forrester AI has now eclipsed indexed search as the dominant method for Forrester Decisions clients to interact with the research database. The company also announced the Forrester AI Agent for Microsoft Copilot, enabling direct access to research within Microsoft workflows, following its integration into Microsoft Teams.

Strategic Business Exits and Focus

The company is strategically exiting the strategy consulting business by year-end, which contributed to the 15% decline in consulting revenue. This decision allows the salesforce to focus on expanding higher-margin CV offerings. The events business also saw a 17% revenue decrease due to a shift in strategy towards shorter, more intimate formats, which are receiving positive feedback for deeper in-person connection.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.