FORR’s AI Pivot Shows Up in Q2 2026: Forrester Research Delivers EPS, Revenue, and a Rebooted Buyback

Overview: numbers, nuance, and a brand-new act

Forrester Research, Inc. (Nasdaq: FORR) disclosed its second-quarter 2026 results with a mix of headline numbers and forward-looking bets. Revenue came in at $100.2 million for the quarter, down from $111.7 million in the same period a year earlier. On the bottom line, GAAP net income was $15.3 million, or $0.78 per diluted share, versus $3.9 million, or $0.20 per diluted share in Q2 2025. The company also reported an adjusted net income of $7.7 million, or $0.40 per diluted share, with an adjusted tax rate of 29%. The press release frames the quarter as delivering EPS and margin that exceeded consensus, nudging the conversation toward an earnings surprise in a positive direction for investors tracking the stock’s earnings trajectory.

Key figures at a glance

• Total revenues: $100.2 million in Q2 2026, down from $111.7 million in Q2 2025.
• GAAP net income: $15.3 million, or $0.78 per diluted share, vs. $3.9 million, or $0.20 per diluted share in the year-ago quarter.
• Adjusted net income: $7.7 million, or $0.40 per diluted share (adjusted tax rate 29%).
• Adjusted net income (2025 basis): $9.8 million, or $0.51 per diluted share, with an adjusted tax rate of 29%.
• Contract value: $283.2 million, down 3% year over year.
• Buyback: The company restarted its stock buyback program and plans to accelerate repurchases.
• Guidance: Forrester reaffirmed its 2026 guidance; additional details are in the investor materials.

A reconciliation of GAAP results to adjusted results is noted as available in the attached financial tables. Management highlighted that topline pressure versus the prior year came with ongoing investments tied to the AI-enabled product strategy.

AI, products, and the organizational bet

The press release foregrounds an AI-inflected strategy—Forrester AI—as a core driver of growth in the coming quarters. Executives pointed to ongoing integration efforts with Microsoft Teams and Copilot as a platform for rolling out new products and capabilities that are intended to lift client retention and accelerate research adoption. In Levine-esque terms, the thesis is: if you can embed smarter analysis into the environments where clients already live, you reduce friction and raise the odds of stickiness. The statement that “we are reinventing the research and advisory business for the AI era through our technology innovation and partnerships” underscores a deliberate pivot from traditional research packaging toward AI-enabled workflows that aim to unlock “demand without the usual inquiry fatigue.”

In the near term, the market will be watching not just the topline, but how well this AI overlay translates into the revenue forecast for AI-enhanced services and how that sits alongside the legacy offerings. The juxtaposition of a $100.2 million quarterly revenue pace with an accelerated AI roadmap creates a narrative about efficiency, integration, and pricing that may influence how peers allocate R&D and go-to-market spend in the sector.

Guidance, margins, and the road ahead

Management reaffirmed its 2026 guidance, a relatively quiet move that nonetheless signals confidence in the AI-enabled trajectory and the portfolio’s resilience. The quarterly results emphasize a bifurcated picture: GAAP profitability expands the headline, while adjusted figures remind that there are near-term investments—amortization, stock-based compensation, and restructuring costs—that cloud the near-term profitability metrics. The stepped-up focus on margin discipline aside, the company’s narrative leans into long-run value creation via AI-powered research access and better client engagement, which proponents hope translates into durable revenue growth even as short-run numbers face a steep comparison to last year.

Implications for FORR and sector peers

For FORR, the combination of hitting EPS with a positive earnings surprise relative to consensus, coupled with a restart of the buyback, sends a signal that management believes the stock is appropriately valued and that capital returns will be a meaningful lever alongside AI-driven product expansion. The 3% year-over-year dip in contract value provides a caution flag—growth in the AI-enabled product suite might need time to translate into contract-value expansion or upsell into higher-value tiers. The sector, meanwhile, is left to weigh the pace at which AI integrations affect competitive positioning. If Forrester’s AI strategy starts to demonstrate measurable improvements in client retention and expansion, peers could feel pressure to accelerate investments in AI-enabled analytics and integration capabilities, potentially impacting margins and the pace of share repurchases industry-wide.

Bottom line: the Q2 print is less about a single data point and more about a strategic inflection. If the AI overlay delivers on demand, the reported EPS and margin metrics may not just beat the current consensus but recalibrate investor expectations for how research and advisory firms monetize AI-driven insights in a subscription-driven, enterprise-facing market.