Forrester Research Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Should l Buy FORR?
Source: seekingalpha
- AI-Driven Business Transformation: Forrester launched AI Access in 2025, with Q4 unique users increasing by 55% year-over-year, indicating a significant rise in client demand for AI products, which is expected to drive future revenue growth.
- Declining Financial Performance: Q4 revenue was $101.1 million, down 6% year-over-year, with full-year revenue at $396.9 million, an 8% decrease, reflecting challenges following the exit from the strategy consulting business.
- Improved Client Retention: Client retention reached 87% in 2025, a 4-point improvement year-over-year, indicating enhancements in client relationship management and service quality, potentially laying a foundation for future revenue stability.
- Cautious Future Outlook: The company guided 2026 revenue between $345 million and $360 million, representing a 9% to 13% decline, primarily influenced by the exit from strategy consulting and restructuring of the events business, highlighting uncertainties in the future market.
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Analyst Views on FORR
About FORR
Forrester Research, Inc. is an independent research and advisory firm. The Company operates through three segments: Research, Consulting, and Events. The Research segment provides objective, independent and data-driven research insights utilizing both qualitative and quantitative data. Its primary subscription research services include Forrester Decisions. The Consulting segment includes consulting projects and advisory services. It delivers focused insights and recommendations to assist clients in developing and executing technology and business strategies. The Events segment hosts multiple events across North America, Europe, and the Asia-Pacific region. Its Events focused on business imperatives of significant interest to clients, including business-to-business marketing, sales and product leadership, customer experience, security and risk, technology and innovation, and data strategies and insights.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI-Driven Business Transformation: Forrester launched AI Access in 2025, with Q4 unique users increasing by 55% year-over-year, indicating a significant rise in client demand for AI products, which is expected to drive future revenue growth.
- Declining Financial Performance: Q4 revenue was $101.1 million, down 6% year-over-year, with full-year revenue at $396.9 million, an 8% decrease, reflecting challenges following the exit from the strategy consulting business.
- Improved Client Retention: Client retention reached 87% in 2025, a 4-point improvement year-over-year, indicating enhancements in client relationship management and service quality, potentially laying a foundation for future revenue stability.
- Cautious Future Outlook: The company guided 2026 revenue between $345 million and $360 million, representing a 9% to 13% decline, primarily influenced by the exit from strategy consulting and restructuring of the events business, highlighting uncertainties in the future market.
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Forrester Research Q4 Earnings Miss Expectations
- Earnings Shortfall: Forrester Research reported a Q4 non-GAAP EPS of $0.17, missing expectations by $0.04, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company's Q4 revenue of $101.1 million, down 6.4% year-over-year, fell short of expectations by $2.15 million, reflecting weak market demand that may hinder future growth prospects.
- Market Dynamics: Palm Valley Capital Fund's acquisition of Ingredion and sale of Northwest Natural in Q4 suggests a shift in investment strategies among market participants, potentially impacting Forrester Research's competitive landscape.
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Forrester's B2B Summit to Feature The Fray Performance
- B2B Summit Theme: Forrester has announced that the theme for the 2026 North America B2B Summit will be “GTM Singularity,” aimed at helping marketing, sales, and product leaders adapt to evolving buyer behaviors and modernize their go-to-market strategies in an AI-driven era.
- Featured Performer: The multi-Platinum band The Fray will perform at the B2B Summit in Phoenix from April 26-29, 2026, known for their four Grammy nominations and multiple Billboard Top 10 hits, promising an energetic live performance for attendees.
- Strategy Reset: With most buying decisions being made prior to seller interactions, B2B leaders must reset their go-to-market strategies to thrive amidst unprecedented unpredictability, ensuring they remain competitive in the market.
- Forrester's Influence: As one of the most influential research and advisory firms globally, Forrester empowers leaders across technology, customer experience, and marketing sectors to accelerate growth and achieve customer-centric goals through its unique research and continuous guidance model.
See More
AI Boom Drives Palantir and Nvidia Stock Surge
- Palantir Stock Potential: Since the release of ChatGPT in November 2022, Palantir's shares have surged 1,650%, currently priced at $132, with analysts setting a target price of $199, indicating a 51% upside and showcasing its strong growth potential in the AI platform market.
- Nvidia Market Leadership: Nvidia's stock has risen 980% in the same period, currently trading at $183, with a median target price of $250 from analysts, suggesting a 37% upside and highlighting its sustained leadership in AI infrastructure.
- Strong Business Growth: Palantir has accelerated revenue growth for 10 consecutive quarters, achieving a Rule of 40 score of 127% in Q4, reflecting exceptional business fundamentals, with Morgan Stanley analysts calling it the best fundamental story in software.
- Cautious Investor Advice: Despite Palantir's 37% decline from its peak, its high P/E ratio of 205 warrants caution among investors, recommending small positions to mitigate risks if the company fails to meet Wall Street's lofty expectations.
See More
Forrester Research Q4 2025 Earnings Call Insights
- AI-Driven Business Transformation: Forrester launched AI Access in 2025, with Q4 unique users increasing by 55% year-over-year, indicating a significant rise in client demand for AI products, which is expected to drive future revenue growth.
- Declining Financial Performance: Q4 revenue was $101.1 million, down 6% year-over-year, with full-year revenue at $396.9 million, an 8% decrease, reflecting challenges following the exit from the strategy consulting business.
- Improved Client Retention: Client retention reached 87% in 2025, a 4-point improvement year-over-year, indicating enhancements in client relationship management and service quality, potentially laying a foundation for future revenue stability.
- Cautious Future Outlook: The company guided 2026 revenue between $345 million and $360 million, representing a 9% to 13% decline, primarily influenced by the exit from strategy consulting and restructuring of the events business, highlighting uncertainties in the future market.
See More
Forrester Research Reports Disappointing Quarterly Results
- Quarterly Revenue Decline: Forrester Research reported fourth-quarter revenue of $101.1 million, down from $108.0 million a year ago and below the consensus estimate of $103 million, indicating significant competitive pressure in the market.
- Widening Losses: The company swung to a net loss of $33.9 million, or $1.78 per share, from a net income of $0.4 million, primarily due to a $26.8 million non-cash goodwill impairment, reflecting deteriorating financial health.
- Poor Annual Performance: For the full year, Forrester's revenue was $396.9 million, down from $432.5 million in 2024, with losses deepening to $119.4 million, or $6.28 per share, highlighting ongoing profitability challenges and market headwinds.
- Pessimistic 2026 Outlook: Forrester expects revenue between $345 million and $360 million for 2026, representing a decline of 9% to 13% from 2025, with negative operating margins projected, underscoring the need for restructuring and strategic adjustments.
See More
Forrester Research Q4 Earnings Miss Expectations
- Earnings Shortfall: Forrester Research reported a Q4 non-GAAP EPS of $0.17, missing expectations by $0.04, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company's Q4 revenue of $101.1 million, down 6.4% year-over-year, fell short of expectations by $2.15 million, reflecting weak market demand that may hinder future growth prospects.
- Market Dynamics: Palm Valley Capital Fund's acquisition of Ingredion and sale of Northwest Natural in Q4 suggests a shift in investment strategies among market participants, potentially impacting Forrester Research's competitive landscape.
- Historical Financial Data: Historical earnings data for Forrester Research indicates that despite current challenges, the company must focus on long-term strategies to navigate changing market conditions and restore growth.
See More
Software Stocks in Bear Market Amid AI Optimism
- Index Decline: The S&P North American Technology Software Index has fallen 24% since its record high in September 2025, entering bear market territory as investors worry that AI coding tools may limit future software demand.
- Optimistic Market Outlook: Morgan Stanley's fourth-quarter CIO survey suggests that software will be the fastest-growing IT sector in 2026, indicating confidence in incumbent software vendors benefiting from AI disruption.
- Strong Datadog Performance: Datadog reported a 28% year-over-year revenue increase to $886 million in Q3, with remaining performance obligations rising 53% to $2.8 billion, although high R&D spending led to slower net income growth.
- Atlassian's Growth Potential: Atlassian's Q3 revenue grew 21% to $1.4 billion, with RPO increasing 42% to $3.3 billion, and the CEO noted that active users engaging with AI features exceeded 3.5 million, reflecting strong market demand.
See More
