Forrester Sees FY26 EPS at 72c-82c, Consensus $1.33
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
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Should l Buy FORR?
Forrester sees FY26 EPS 72c-82c, consensus $1.33
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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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See More
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- Amazon's AI and Robotics Integration: Amazon is enhancing its retail efficiency by developing hundreds of generative AI tools that optimize demand forecasting and fulfillment workflows, which is expected to significantly boost operational margins and strengthen its competitive position in the market.
- AWS Revenue Growth: Amazon Web Services (AWS) reported a 24% revenue growth in Q4, marking its fastest growth in four years, indicating the company's continued profitability in AI technology, with expectations of maintaining a 15% annual growth rate in the coming years.
- Palantir's Sales Growth: Palantir has accelerated its sales growth for ten consecutive quarters, and despite a high valuation of 208 times adjusted earnings, it is projected to achieve a 57% annual growth in adjusted earnings by 2027, showcasing its strong performance in the AI sector.
- Defense Department Recognition of Palantir: The U.S. Department of Defense has designated Palantir's Maven Smart System as an official program of record, which is expected to expedite its adoption within the military, further solidifying its market position in both public and private sectors.
See More
Analysts Favor Amazon and Palantir Stocks as Undervalued
- Amazon Target Price Analysis: Analysts suggest that Amazon's current share price of $208 has a target price of $285, indicating a 37% upside, reflecting market optimism about its future growth potential.
- AI-Driven Efficiency Gains: Amazon is enhancing retail operational efficiency through hundreds of generative AI tools, including optimizing demand forecasting and fulfillment workflows, which is expected to significantly improve profit margins.
- Palantir Sell Recommendation: Analysts recommend selling Palantir, with a current price of $156 and a target price of $70, implying a 55% downside risk, indicating market concerns over its high valuation.
- Military Project Recognition: Palantir's Maven Smart System has been designated as an official program by the Pentagon, which is expected to accelerate its military applications, although its current valuation of 208 times earnings is still considered excessively high.
See More
Asia Pacific Tech Spending Expected to Grow 9.3%
- Tech Spending Growth: Forrester forecasts that the Asia Pacific region will spend over $437 billion on new technology from 2025 to 2030, with an expected growth of 9.3%, although cost pressures and regulatory fragmentation will diminish real growth.
- Country Spending Variations: In 2026, Australia's tech spending is projected to reach nearly A$110 billion (approximately $70.6 billion), growing by 8.6%, with software prices rising nearly five times the general inflation, impacting corporate budgets significantly.
- China's AI Investment: China's AI infrastructure spending is expected to exceed $70 billion, driven by major investments from Alibaba and ByteDance, along with industrial digitalization mandates, although weak domestic demand will slow traditional enterprise IT spending.
- Active Southeast Asian Market: In 2026, tech spending in Southeast Asia is set to grow significantly, with Vietnam expected to rise by 15.4% and Indonesia by 12.5%, indicating a shift in the region's digital economy from user acquisition to monetization, with digital services income projected to reach $11 billion in 2024.
See More
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- Strategic Shift: OpenAI has decided to abandon its Instant Checkout feature in favor of developing dedicated apps with retailers, aiming to enhance user experience and give retailers more control over the transaction process to better compete in the e-commerce landscape.
- User Experience Challenges: Analysts noted that OpenAI underestimated the complexities of enabling transactions, leading to errors in the Instant Checkout feature, with only about 30 Shopify merchants participating, highlighting the difficulties in technical implementation.
- Market Response: Walmart's data indicates that conversion rates for products sold directly in ChatGPT are three times lower than those that redirect users to retailer websites for checkout, suggesting that users prefer completing purchases on retailer sites, impacting OpenAI's e-commerce potential.
- Future Outlook: Despite the challenges faced by OpenAI, analysts believe that AI shopping is still in its early stages, with the potential to attract more retailer investments, especially through new apps that enhance the shopping experience.
See More
Software Stocks Decline, Nvidia CEO Rebuts Market Reaction
- Illogical Market Reaction: Nvidia CEO Jensen Huang argues that the market's reaction to AI is irrational, stating that many software companies are under pressure due to the belief that AI will replace them, which he describes as 'the most illogical thing in the world.'
- Microsoft's Cloud Market Share Growth: Microsoft increased its share of cloud infrastructure and platform services spending from 20% in September to 21% in December, indicating ongoing growth in its cloud computing market share driven by enhanced compute capacity and demand for Foundry AI services.
- Strong Financial Performance for Datadog: Datadog reported a 29% revenue increase to $953 million in Q4, with remaining performance obligations rising 52% to $3.4 billion, suggesting robust future revenue growth potential, although non-GAAP net income grew only 20% due to heavy R&D spending.
- AI Boosting Demand for Observability Software: Datadog was ranked as a leader in AI for IT operations by Forrester Research, and as cloud adoption and AI proliferate, its market share in core observability is expected to continue growing, making it a top priority for many IT departments.
See More
Software Index Falls 26% Amid AI Concerns
- Bear Market for Software: The S&P North American Technology Software Index has fallen 26% from its September all-time high, entering bear market territory primarily due to investor concerns that AI code generation tools may reduce demand for existing software products, leading to a bearish market sentiment.
- Microsoft's Attractive Valuation: Microsoft shares currently trade at $409, with a median analyst target price of $600, implying a 47% upside; its strong position in enterprise software and the integration of generative AI to enhance productivity have drawn investor interest amid market volatility.
- Datadog's Growth Potential: Datadog's current share price is $126, with a median analyst target price of $180, indicating a 42% upside; its AI applications in IT operations have been recognized by Forrester as a leader, highlighting strong market demand for its observability and security software.
- Strong Financial Performance: Datadog reported a 29% revenue increase to $953 million in Q4, with remaining performance obligations rising 52% to $3.4 billion, indicating robust future revenue growth potential, although non-GAAP net income grew slower due to heavy R&D spending, yet the long-term outlook remains optimistic.
See More
