WillItSurvive
Financial data and information services · United States

Forrester Research

forrester.com ↗

Research and advisory firm selling subscription analyst reports and consulting to tech buyers.

Losing its protection
Assessed 21 July 2026 · Evidence as of 21 July 2026
The structural protection is eroding.
On the recordSince 21 July 2026 · Checkable from July 30, 2026 · Every call on the record Checkpoint: Q2 2026 earnings call, watch contract value trend
The call

Forrester's subscription base keeps shrinking while its new AI product stays tiny, leaving the pivot racing a faster decline.

Forrester sells research reports and expert advice to companies, mostly through multi-year contracts with named analysts who publish surveys and recommendations. It is getting harder to copy because their analysts have years of credibility and most customers stay locked in for multiple years, but it is getting easier to replace because Gartner is bigger and better-known, and because ChatGPT and similar AI tools can now generate decent research summaries instantly for free or cheap. The one thing that could save Forrester is if their new AI product (Forrester AI Access) starts bringing in real money fast enough to offset the 6 to 13 percent drop in their old business, but so far it has only earned about 5 million dollars in bookings.

Why
01
AI pressure: ChatGPT and other generative AI tools clients can query directly. Buyers ask ChatGPT for market analysis instead of paying for reports, shrinking the core subscription business fast. Could AI do the core job? Only partly.
02
Bigger players: Gartner. Gartner is bigger, better funded, and could ship an AI-native research product first, squeezing Forrester further. Could a giant copy it? Yes, easily.
03
What protects it. Proprietary survey data, named analyst relationships, and multi-year contracts covering 72% of contract value.
What would change this call
Q2 2026 earnings call July 30, 2026 reports contract value trend. shows whether the AI pivot is offsetting or losing to legacy business erosion.
Forrester AI Access bookings figure disclosed beyond the $5M reported for Q4 2025. indicates whether the AI product is scaling fast enough to replace lost research revenue.
Any announcement of a third workforce reduction beyond the current 8% cut. would signal costs are still outrunning revenue despite restructuring.
Key numbers
  • 2025 revenue fell 8% to $396.9 million (2026-02-12)
  • Contract value down 3% YoY to $285.3 million (2026-05-06)
  • AI Access bookings over $5 million (2026-02-12)
Named risks
  • Contract value and revenue have declined for multiple consecutive years with no confirmed stabilization. Severity: high
  • Generative AI/LLMs disintermediating research and consulting synthesis work. Severity: high
  • Possible third round of layoffs or restructuring if 2026 guidance is missed. Severity: medium
  • Small market cap (~$193.5M) leaves company exposed to activist investor or takeover pressure. Severity: medium
  • Full exit from strategy consulting line removes about $6 million of revenue through 2026. Severity: low
Rivals, as read in July 2026
RivalDirectionEvidence
Gartnerlosing toDescribed as larger, healthier and growing while Forrester revenue fell 8% in FY2025 (Feb 2026)
IDCcontestingIDC has 1,300+ analysts vs Forrester's smaller analyst base, per 2026 industry comparison
McKinsey, BCG, Deloitte, Accenturegaining onLarge consultancies compete for AI/strategy work as Forrester exits strategy consulting (Feb 2026)
TSIA, Everest Group, 451 Research, OmdiacontestingNamed as alternative research/benchmarking vendors in 2026 comparisons
Questions people ask
Is Forrester Research profitable in 2026?
No. Forrester posted a FY2025 GAAP net loss of $119.4 million (including a $110.7 million non-cash goodwill impairment) on revenue down 8% to $396.9 million, and guided 2026 revenue to fall a further 9-13% to $345-360 million, as of the February 12, 2026 earnings report.
Is Forrester Research laying off employees?
Yes. Forrester cut 6% of its workforce in January 2025, then announced an 8% global workforce reduction plus office closures on February 9, 2026, with about $10-10.5 million in severance costs. Third-party trackers put headcount at roughly 1,395 employees by March 2026, down 7.6% year over year.
Could AI replace Forrester Research's analysts?
Forrester argues its proprietary survey data and named-analyst access can't be replicated by LLMs, but its own AI Access product had generated only about $5 million in bookings by Q4 2025, far below the roughly $36 million annual revenue decline, leaving the pivot unproven as of February 2026.
Who is Forrester Research's biggest competitor?
Gartner is Forrester's largest rival; industry comparisons describe Gartner as larger, healthier, and still growing while Forrester's revenue has shrunk for multiple straight years, with contract value down 6% in 2025 and another 3% in Q1 2026.
Who owns Forrester Research?
Forrester Research is a standalone public company trading on Nasdaq under ticker FORR, with no parent or recent ownership change found as of July 2026. George F. Colony, who founded the firm in July 1983, remains Chairman and CEO.
Is Forrester Research's revenue declining?
Yes, for multiple consecutive years. FY2025 revenue fell 8% to $396.9 million from $432.5 million in FY2024, contract value dropped 6% in 2025 and another 3% in Q1 2026, and 2026 guidance projects a further 9-13% revenue decline.
Timeline
  • 2026-07-21Market cap around $193.5 million, stock near $9.44-9.63, 52-week range $4.88-11.57
  • 2026-05-06Q1 2026 results: contract value down 3% YoY to $285.3M, 2026 revenue guided to $345-360M
  • 2026-03-12Forrester AI certified for Microsoft Teams and Microsoft Marketplace
  • 2026-02-12FY2025 results: revenue $396.9M (down 8%), net loss $119.4M including goodwill impairment
  • 2026-02-09Announced 8% global workforce cut and office closures, ~$14M restructuring charges
  • 2025-09Launched self-service Forrester AI Access product
  • 2025-01-10Announced 6% workforce reduction and office closure
  • 2019-01Acquired SiriusDecisions for approximately $245 million
  • 1996-11IPO on Nasdaq, raising roughly $32 million
  • 1983-07Forrester founded by George F. Colony
Revision history
21 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
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