Q2 2026 Forrester Research Inc Earnings Call Transcript
Key Points
- Forrester Research Inc (FORR) reported Q2 2026 results that beat consensus expectations on revenue, margin, and EPS, with performance aligned with its internal plan.
- Forrester AI adoption is accelerating rapidly, with total users up 33% quarter-over-quarter and 69% year-over-year, and prompts up 58% quarter-over-quarter and 105% year-over-year.
- Forrester AI has become the dominant method for clients to interact with its research database, surpassing indexed search, and the AI access product has generated approximately $10 million in bookings since its launch nine months ago.
- The company is innovating with new product integrations, such as the Forrester AI Agent for Microsoft Copilot and Microsoft Teams, positioning it as a leader in embedding research into client workflows.
- Forrester Research Inc (FORR) is confident in achieving contract value (CV) growth by year-end 2026, supported by strong CV bookings growth in Q2, a growing pipeline, and improvements in retention metrics.
- The company's B2B Summit North America saw a 9% year-over-year increase in attendees, with the event estimated to influence approximately $3.5 million in contract value bookings.
- Forrester Research Inc (FORR) has a strong balance sheet with over $130 million in cash and only $35 million in debt, and has restarted its stock buyback program with over $76 million in authorization remaining.
- Total revenue decreased 10% year-over-year in Q2 2026, with research revenue down 8% and non-CV businesses down 15%.
- The consulting business posted revenues of $20 million, down 15% year-over-year, largely due to the exit from the strategy consulting business, which will continue to impact results through year-end.
- The events business saw revenues decline 17% year-over-year to $8.5 million, impacted by a shift in event strategy towards shorter, more intimate formats.
- Client retention dipped by 1 point to 77% in Q2, and upsell performance was slightly below expectations, remaining flat versus the prior period.
- Market uncertainty continues to drive declines in consulting and events businesses, and the North American government segment remains a challenge, though a turning point is expected in Q3.
- Operating income decreased 24% to $10.4 million, and net income and earnings per share decreased 21% and 22% respectively compared to Q2 of last year.
- The company is maintaining its full-year 2026 guidance, which still projects a revenue decline of 9% to 12% versus 2025, indicating ongoing headwinds.
Thank you. Good afternoon and thank you for standing by. Welcome to Forrester's second-quarter 2026 conference call. (Operator Instructions)
Please be advised that today's conference is being recorded.
I would now like to turn the conference over to the Vice President of Corporate Development and Investor Relations, Ed Bryce Morris. Please go ahead.
Thank you, and hello everyone. Thanks for joining today's call. Earlier this afternoon, we issued our press release for the second quarter of 2026. If you need a copy, you can find one on our website in the Investors section. Here with us today to discuss our results are George Colony, Forrester's Chief Executive Officer and Chairman; and Chris Finn, Chief Financial Officer. Carrie Johnson, our Chief Product Officer; and Christophe Favre, our Chief Sales Officer, are also here with us for the Q&A section of the call.
Before we begin, I'd like to remind you that this call will
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