Forrester's Q3 2026 Report: A Resilient Performance Amidst Market Uncertainty
Forrester, a leading global research and advisory company, recently released its third quarter 2026 performance report, showcasing a resilient effort amidst market uncertainty. During the conference call on October 29th, George Colony, CEO and Chairman, and Chris Finn, CFO, provided insights into the company's Q3 results.
The company reported a 3.5% year-over-year decline in contract value (CV), with retention rates holding steady at 89%. Notably, client retention returned to Q1 levels, increasing by one point from the previous quarter and four points from the previous year. Total revenue decreased by 9%, consistent with the prior quarter, while research revenue saw a 3% decrease, driven by strength in the technology vertical.
Consulting services experienced a decline of 31%, primarily due to market uncertainty and the company's earlier exit from strategic consulting. Despite this, Forrester hosted successful events worldwide, including sold-out B2B Forums in APAC and EMEA, as well as AI Forums in Singapore and Sydney. These gatherings focused on key industry topics, such as go-to-market singularity and scaling generative and agentic deployments.
CEO George Colony emphasized that Q3 performance aligned with the company's expectations, achieving consensus beats on revenue, margin, and EPS (earnings per share). This strong showing demonstrates Forrester's ability to adapt and thrive in challenging market conditions.
In addition to its financial highlights, Forrester introduced two new products during Q3: Team Solutions and AI Access Plus. Team Solutions enables teams to collaborate more effectively, leveraging the company's research and data to drive business outcomes. AI Access Plus further democratizes Forrester's research and advisory, providing clients with broader access to the company's expertise.
As the company continues to expand its product line, it seeks to provide clients with increased choice and optionality. This strategy is designed to drive upsell within the existing client base, fostering long-term growth and loyalty.
The update on Forrester AI demonstrated the company's commitment to harnessing generative technology to empower clients. By leveraging this innovation, clients can access advice and guidance more quickly, creating something new and original from the company's data. As the market continues to evolve, Forrester remains well-positioned to capitalize on emerging trends and opportunities.
