FORRForrester Research Inc.

Quick Summary

Forrester Research, Inc. is a leading research and advisory firm headquartered in Cambridge, Massachusetts. The company operates through three main business segments: Research, Consulting, and Events. Forrester provides subscription-based research, consulting services, and hosts both virtual and in-person events centered around B2B marketing, sales, product leadership, customer experience, security/risk, new technology, innovation, and data strategies. Its primary customers include corporate executives, marketing and product leaders, technology professionals, and large enterprise clients looking for actionable insights, benchmark data, and guidance on key business initiatives. Forrester’s offerings are tailored to help organizations navigate digital transformation, customer-centric strategies, and emerging technology adoption.

Key Risks

• Risks for Forrester include the potential for continued revenue declines if client budgets remain constrained or if the new product launches such as AI Access fail to scale effectively.
• Growing competition from other major research and consulting firms threatens its market share.
• There is also a risk that rapid AI deployment, both internally and for clients, may outpace governance, resulting in inaccuracies, loss of client trust, or legal liabilities.
• Forrester is further vulnerable to macroeconomic volatility, protracted sales cycles, and event business underperformance.

What to Watch

Price Drivers

• Forrester’s stock price is driven by several factors including quarterly earnings performance, changes in contract value and client retention rates, and trends in enterprise tech spending.
• Key price catalysts include the adoption and success of new offerings like AI Access, effective execution of cost-cutting and restructuring programs, and the ability to return to revenue growth after recent declines.
• Investor sentiment is also affected by macroeconomic trends influencing client spending, the lengthening of sales cycles, and public company events such as earnings calls.
• The company’s market capitalization, trading volume, and beta indicate sensitivity to both industry trends and broader market volatility.

Recent News

• In recent months, Forrester reported revenue and contract value declines, partly attributed to tighter client budgets and slower sales cycles.
• The company took significant impairment charges, leading to a reported net loss, although adjusted income metrics were healthier.
• Forrester launched its AI Access product, securing a major enterprise deal and receiving strong marketplace interest.
• The firm is undergoing restructuring to reduce costs and enhance efficiency, while also broadening its pipeline and modernizing event offerings.

Market Trends

• Broader market trends affecting Forrester include the rapid adoption of generative AI and enterprise-oriented technology spending, projected to see strong global growth through 2030.
• There is a clear shift toward AI-powered solutions in key industries such as defense, finance, healthcare, and retail.
• However, there is growing skepticism about AI accuracy and trust, leading to greater demand for governance and integration of human expertise.
• Marketing and advertising budgets are shifting, with digital and display ad spending expected to decline in some sectors.