Forrester Research Stock: Revenue Pressure, AI Adoption, and the 2026 Reset
By Darlene Aberin Updated
Forrester Research stock enters late 2026 with shrinking revenue, a smaller but steadier base of subscription clients, and a major push to rebuild its research business around AI. The company's own filings show a business in transition rather than in growth.
Shares of Forrester (Nasdaq: FORR) closed at $11.71 on October 14, 2026, according to Yahoo Finance. Yahoo listed the 52-week range as $4.88 to $12.75. Using the 19.4 million diluted shares reported for the second quarter, that price implies a market capitalization of roughly $225 million, a Fin Loom calculation rather than a reported figure.
This analysis of Forrester Research stock covers what the second-quarter 10-Q and results release show, which metrics carry the most weight, and the risks around the plan. It is informational and does not recommend buying, selling, or holding the shares. Readers can compare its structure with how professional analysts package this work in equity research reports.
Key Takeaways
- Forrester Research stock closed at $11.71 on October 14, 2026, near the top of its 52-week range of $4.88 to $12.75.
- Second-quarter 2026 revenue was $100.2 million, down 10.2% from $111.7 million a year earlier, with declines in all three segments.
- Contract value was $283.2 million at June 30, 2026, down 3% from $292.8 million.
- Client retention rose to 77% from 74%, and wallet retention rose to 89% from 85%.
- Second-quarter operating income fell to $3.4 million from $7.0 million, while net income rose to $15.3 million because of a $12.3 million tax benefit.
- Full-year 2026 guidance calls for revenue of $350 million to $360 million, a decline of 9.3% to 11.8%.
The Stock Has Recovered From Its 52-Week Low
Yahoo Finance data show FORR closing at $11.71 on October 14, 2026, against a 52-week low of $4.88 and a high of $12.75. The shares have more than doubled from that low.
A rebound of that size suggests the market is giving weight to the company's restructuring, cost control, AI products, and signs of stabilization in its subscription metrics. It does not mean those efforts have succeeded yet. The numbers in the filings show a company still shrinking, and the recovery in Forrester Research stock rests partly on expectations about what comes next.
Revenue Is Still Contracting
Forrester's second-quarter 2026 Form 10-Q reported total revenue of $100.2 million for the quarter ended June 30, 2026, down 10.2% from $111.7 million a year earlier.
| Revenue Segment | Q2 2025 | Q2 2026 | Change |
|---|---|---|---|
| Research | $77.9M | $71.7M | -8.0% |
| Consulting | $23.5M | $20.0M | -14.7% |
| Events | $10.2M | $8.5M | -17.2% |
| Total | $111.7M | $100.2M | -10.2% |
Source: Forrester Research, Form 10-Q for the quarter ended June 30, 2026. Changes are Fin Loom calculations from the reported figures.
Research is the largest segment and the one that depends on recurring subscriptions. The 10-Q says research revenue rose to about 75% of total revenue in the first half of 2026, from about 73% a year earlier, because the other segments fell faster.
Contract Value Is the Metric to Watch
Contract value is Forrester's measure of the annualized value of all its recurring research contracts at a point in time. At June 30, 2026, it stood at $283.2 million, down 3% from $292.8 million a year earlier.
Why Contract Value Leads Revenue
Research revenue is recognized over the life of each contract, so a change in contract value tends to show up in revenue later. A falling contract value points to lower research revenue ahead, while a stable or rising one would be one of the earlier signs that the decline is easing.
Retention Is Improving
The 10-Q also shows retention moving in the right direction. Client retention rose to 77% from 74%, and wallet retention, which measures how much contract value is kept from existing clients, rose to 89% from 85%. The number of clients fell 2% to 1,770, so the base is smaller but holding on better.
Second-Quarter Profit Was Shaped by a Tax Benefit
The headline profit figure needs care. Forrester reported second-quarter net income of $15.3 million, or $0.78 per diluted share, up from $3.9 million a year earlier.
Operating Income Fell
Operating income, which reflects the business itself, fell to $3.4 million from $7.0 million in the second quarter of 2025. Restructuring costs of $2.1 million were part of that, up from $0.5 million a year earlier. Excluding restructuring, operating income would still have been lower than a year earlier, a Fin Loom calculation from the reported figures.
Why Net Income Rose
The jump in net income came from an income tax benefit of $12.3 million in the quarter, against a tax expense of $3.2 million a year earlier. Tax items like this can reverse, so operating income gives the cleaner view of how the quarter performed.
The First Half Was a Loss
Over the first six months of 2026, Forrester reported a net loss of $6.6 million. The period included a $10.8 million goodwill impairment charge for the research reporting unit, recorded in the first quarter. That is much smaller than the $83.9 million impairment in the first half of 2025, but it shows the company still marking down the value of past acquisitions.
Cash and Investments Provide Flexibility
At June 30, 2026, Forrester reported $59.5 million in cash and cash equivalents and $71.3 million in marketable investments, a combined $130.8 million.
Cash Flow in the First Half
Operating activities generated $25.0 million in the first six months of 2026, up from $23.1 million a year earlier. Purchases of property and equipment were $18.2 million, which the 10-Q says included about $16.6 million of leasehold improvements and furniture, so capital spending was unusually high in the period.
What the Balance Sheet Allows
That liquidity gives management room to keep restructuring, invest in AI products, and buy back shares without depending on outside funding. For a company with a market value around $225 million, a cash and investment balance of about $131 million is a large share of the total.
The First Half of 2026 in Numbers
Six-month figures give a broader view than one quarter, because they include the first-quarter impairment.
| Six Months Ended June 30 | 2025 | 2026 |
|---|---|---|
| Total revenue | $201.5M | $185.7M |
| Operating loss | $80.6M | $15.2M |
| Net loss | $83.4M | $6.6M |
| Cash from operations | $23.1M | $25.0M |
Source: Forrester Research, Form 10-Q for the quarter ended June 30, 2026.
The losses in both periods are driven largely by goodwill impairments of $83.9 million in 2025 and $10.8 million in 2026. Cash from operations, which excludes those non-cash charges, was slightly higher in 2026.
Forrester AI Is the Core Strategic Bet
In the second-quarter results release filed with the SEC on July 30, 2026, CEO and Chairman George F. Colony said the company is "seeing accelerated adoption of Forrester AI" and described the work as "reinventing the research and advisory business for the AI era."
He added that in the second half of the year, Forrester would follow its Microsoft Teams and Copilot integration work with additional products and capabilities, aimed at letting clients reach Forrester research inside their own work tools.
The release describes adoption as accelerating but the figures above do not isolate how much revenue Forrester AI produces. Until that contribution appears in reported results, investors following Forrester Research stock are judging the AI strategy mainly through indirect signals such as retention and contract value.
2026 Guidance Still Calls for a Revenue Decline
Forrester maintained its full-year 2026 guidance in the July results release.
| Full-Year 2026 GAAP Guidance | Range |
|---|---|
| Revenue | $350.0M to $360.0M |
| Change versus 2025 | -11.8% to -9.3% |
| Operating margin | -3.5% to -3.0% |
| Diluted loss per share | $0.84 to $0.74 |
Source: Forrester Research, second-quarter 2026 results release. Company guidance, not a Fin Loom forecast.
The release also gave adjusted guidance, which excludes the $10.8 million goodwill impairment, stock-based compensation, restructuring, and other items. On that basis, the company expects an adjusted operating margin of about 6.0% to 6.5% and adjusted diluted earnings of about $0.72 to $0.82 per share. The gap between the GAAP and adjusted figures shows how much the reported results depend on one-time charges.
The Buyback Has Restarted
Colony said Forrester has restarted its buyback program and plans to accelerate repurchases. The 10-Q shows the company bought back about 0.1 million shares for about $1.1 million in the second quarter, after making no repurchases in the same period of 2025.
At a market capitalization near $225 million, repurchases can have a larger percentage effect on the share count than at a large company. The scale so far is modest, so the effect depends on how far the company follows through on its plan to accelerate.
How Forrester Makes Money
Forrester reports three segments, and each behaves differently. Understanding the mix helps explain why revenue and profit can move in different directions.
Research
Research is the subscription business, built on what the company calls contract value products. The 10-Q says these products make up essentially all of research revenue and have historically been its most profitable, with contracts that renewed at high rates. That is why retention and contract value receive so much attention.
Consulting and Events
Consulting covers project work for clients, and events covers the conferences Forrester hosts. Both depend more on individual decisions to buy each year than the subscription business does. In the second quarter of 2026, consulting revenue fell 14.7% and events revenue fell 17.2%, faster than research.
Reading the GAAP and Adjusted Numbers
Forrester reports results on two bases, and the difference between them is large in 2026. Investors following Forrester Research stock need to know which figure they are looking at.
What GAAP Includes
GAAP results include every charge, such as the $10.8 million goodwill impairment, restructuring costs, and stock-based compensation. On that basis, the company's full-year guidance points to an operating loss, with an operating margin of negative 3.5% to negative 3.0%. These are the figures reported in the financial statements.
What Adjusted Results Leave Out
Adjusted results remove those items to show the ongoing business. On that basis, the guidance points to an operating margin of about 6.0% to 6.5%. Neither view is wrong, but adjusted figures depend on management's choice of what to exclude, so reading both gives a fuller picture.
What the Next Quarterly Report Could Show
The third-quarter report will add a new set of figures to test the reset against. Several items deserve particular attention when it arrives.
Contract Value and Retention
Whether contract value is still falling, and at what rate, is the clearest signal for future research revenue. Retention figures show whether the improvement seen at midyear is holding, which would support a slower decline in subscriptions. Both figures appear in the 10-Q's discussion of key metrics.
Operating Income Without Tax Effects
Operating income shows how the business performs before tax items. A positive result without help from a tax benefit would be stronger evidence that the cost base now fits the smaller company than the second quarter's net income figure provided.
Progress Against Guidance
Results will show how the company is tracking against its range of $350 million to $360 million in full-year revenue. Any change to that guidance, in either direction, would also signal how management sees the rest of the year. Year-to-date revenue makes that comparison straightforward.
Buyback Activity
The 10-Q will show how many shares were repurchased in the quarter. Since management said it plans to accelerate repurchases, the size of the buyback will show how far that plan has moved from words into action. The cost and share count are both reported in the equity notes.
How to Read Forrester Research Stock Alongside the Filings
Share prices move daily, while filings arrive each quarter. Reading the two together keeps attention on what the business is doing rather than on short-term price moves.
A practical approach is to note the key figures from each 10-Q, such as revenue by segment, contract value, retention, operating income, and cash, and to compare them quarter by quarter. That record makes it easier to judge whether a move in the stock reflects a change in the business or a change in sentiment alone.
What Would Make the Turnaround More Convincing?
Several measures in future filings would show whether the reset is working. The most direct signals are below.
- Contract Value: A return to year-over-year growth would point to research revenue stabilizing.
- Retention: Client and wallet retention holding at or above current levels would support that trend.
- Operating Income: Consistent positive operating income, rather than tax-driven net income, would show the cost base fits the smaller revenue.
- AI Contribution: Reported revenue or usage tied to Forrester AI would make the strategy measurable.
- Cash Flow: Free cash flow after normal capital spending would show what the business generates.
What Could Break the Case for FORR?
The main risks are a continued decline in subscriptions, AI tools that let clients bypass paid research altogether, further weakness in consulting and events, and restructuring that improves margins without restoring growth.
Further goodwill impairments are also possible. The 10-Q notes that the company may be required to record additional impairment charges, which would weigh on reported results even if cash flow holds up.
FORR Is a Turnaround Case Built on Research Economics
Forrester Research stock is not a revenue-growth story today. The filings describe a smaller, more focused research company trying to stabilize subscriptions while using AI to make its research easier to reach.
Retention gains, steady operating cash flow, and a solid cash position support that effort, while falling revenue, weaker operating income, and impairment charges show how much remains to be done. The useful approach is the one covered in stock analysis fundamentals: read the statements together, separate one-time items from the core business, and judge the price against what the numbers support. The next quarterly report should add evidence either way. Until then, the clearest guide is the filings themselves: contract value, retention, operating income, and cash flow, read together and compared quarter by quarter rather than judged from a single headline figure.
Frequently Asked Questions
What Was Forrester Research Stock Trading At in October 2026?
FORR closed at $11.71 on October 14, 2026, according to Yahoo Finance. Its 52-week range was $4.88 to $12.75, placing the stock near the top of that range.
How Much Revenue Did Forrester Report in Q2 2026?
Forrester reported second-quarter 2026 revenue of $100.2 million, down from $111.7 million a year earlier, with declines in its research, consulting, and events segments.
What Is Forrester's 2026 Revenue Guidance?
Forrester maintained full-year 2026 revenue guidance of $350 million to $360 million, which the company says represents a decline of 9.3% to 11.8% from 2025.
Why Did Forrester's Q2 Net Income Rise?
Net income rose to $15.3 million mainly because of a $12.3 million income tax benefit. Operating income from the business fell to $3.4 million from $7.0 million.
Is Forrester Research Stock a Growth Stock?
Not in the traditional sense. Revenue is contracting, so FORR is better described as a turnaround case that depends on subscription stabilization, margins, AI adoption, and capital allocation.