Forrester Research, Inc.

Q2 2026 revenue was $100.2 million, down 10% from $111.7 million in Q2 2025. Adjusted operating income was $10.4 million, or 10.4% of revenue, versus $13.7 million, or 12.2% last year; net income was $7.7 million versus $9.8 million, and adjusted EPS was $0.40 versus $0.51. Research revenue fell 8%, consulting revenue was $20 million and down 15%, and events revenue was $8.5 million and down 17%. CV declined 3%, wallet retention was flat, client retention was 77%, and client count increased to 1,770. For 2026, Forrester reaffirmed revenue guidance of $350 million to $360 million, down 9% to 12%; operating margin guidance of 6% to 6.5%; interest expense of $2.3 million; a 29% tax rate; and EPS of $0.72 to $0.82.

George Colony framed the quarter as in line with expectations and emphasized that trends from Q1 continued, with pressure in consulting and events offset by confidence in the CV plan. He highlighted Forrester’s AI research and product strategy as a major opportunity, saying the company is helping clients make high-stakes decisions in an AI era and is embedding research into workflows through Microsoft Teams and Copilot. His tone was optimistic but measured, repeatedly stressing discipline, objectivity, and an expectation of CV growth by year-end.

Leo Christian Finn focused on stability in the CV business, saying the decline and wallet retention were consistent with Q1 and in line with expectations, while bookings growth and improving retention supported confidence in a second-half improvement. He noted that operating expenses fell 8% on lower compensation costs, headcount was down 7%, and the company restarted its stock buyback program, repurchasing about $1 million of shares with over $76 million of authorization remaining. He also cited cash of over $130 million, debt of $35 million, first-half operating cash flow of $25 million, capex of $18.2 million, and free cash flow of approximately $20.7 million excluding the headquarters buildout.

Analysts focused on how much visibility management has for CV growth by year-end, and management pointed to better retention, a rising pipeline, and new products launching in Q3 as reasons for confidence. Christophe Favre said Q2 showed CV bookings growth year over year, with strength in tech research, EMEA, and APAC, while the North American government segment remained challenged but may turn in Q3 as federal clients ‘get back to business.’ He also said the sales organization has been reorganized by verticals and is being held more accountable through a balanced scorecard, while Carrie Johnson Fanlo said Forrester is first in its competitive set to have a presence in Microsoft Teams and a Copilot AI agent.