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    FORR
    Earnings call· Jun 2026(Q2 FY26)

    FORRESTER RESEARCH Q2 FY26 earnings call FORR

    Jul 30, 2026 Source

    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

    9
    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

    3
    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%——

    Operational metrics

    17
    CV decline
    3%consistent with prior quarter
    Q2 FY26

    CV decline was consistent with the prior quarter and in line with expectations.

    Total revenue
    $100.2Mdown 10% YoY
    Q2 FY26

    Total company revenue generated in the second quarter.

    Operating expenses
    down 8%YoY
    Q2 FY26

    Primarily driven by lower compensation costs.

    Headcount
    down 7%YoY
    Q2 FY26

    Driven by restructuring earlier in the year, though sales capacity saw a slight increase in Q2.

    Operating income
    $10.4Mdown 24% YoY
    Q2 FY26

    Operating income decreased compared to $13.7 million or 12.2% of revenue in Q2 2025.

    Interest expense
    $0.4Mdown from $0.7M YoY
    Q2 FY26

    Interest expense for the quarter.

    Net income
    $7.7Mdown 21% YoY
    Q2 FY26

    Net income for the current quarter, compared to $9.8 million in Q2 2025.

    EPS
    $0.40down 22% YoY
    Q2 FY26

    Earnings per share for the current quarter, compared to $0.51 in Q2 2025.

    Capital expenditures
    $18.2M
    H1 FY26

    Total capital expenditures in the first half of the year, with $16.6 million associated with the Cambridge headquarters build-out.

    Cash balance
    over $130M
    end of Q2 FY26

    Cash balance at the end of the quarter.

    Debt
    $35M
    end of Q2 FY26

    Total debt at the end of the quarter.

    Shares repurchased
    approximately $1M
    Q2 FY26

    Amount of shares repurchased during the quarter, starting late in the period.

    Stock repurchase authorization remaining
    over $76M
    Q2 FY26

    Remaining authorization for stock repurchases.

    AI Access bookings
    approximately $10M
    since launch

    Bookings generated by the AI Access product since its launch.

    B2B Summit influenced bookings
    approximately $3.5M
    Q2 FY26

    Estimated contract value bookings influenced by the B2B Summit North America event.

    Total AI users
    up 33%up 69% YoY
    Q2 FY26

    Increase in total users of Forrester AI.

    Forrester AI prompts
    up 58%up 105% YoY
    Q2 FY26

    Increase in the number of prompts used with Forrester AI.

    Industry KPIs

    1
    MetricValueDetails
    Retention rate77% (Client retention), 89% (Wallet retention)%

    Product announcements

    3
    ProductTypeDetails
    Forrester AI Agent for Microsoft Copilotlaunch
    Forrester AI integration into Microsoft Teamsupdate
    Updated Total Experience (TX) Scoreupdate

    Capital programs

    1
    Cambridge headquarters build-outunderway
    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

    3
    Market uncertaintyQ2 FY26

    drove consulting and events declines

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

    Exit of strategy consulting businessQ2 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 challengesQ2 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

    5

    CV growth

    by year-end 2026
    Current3% decline in Q2 FY26
    Targetgrowth 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.