Forrester Research Raises 2026 EPS Outlook Floor
Professional services firms face revenue volatility as federal deal timing remains uncertain for operators.
Updated on Oct. 30, 2026 in Public Companies
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Forrester Research reported a 9% year-over-year revenue decline for the third quarter, driven by significant drops in consulting and research income. Despite these results, the company raised its 2026 earnings-per-share outlook floor to $0.77.
Why it matters
Management points to uncertainty surrounding the timing of U.S. federal deals as a primary driver of recent contract-value volatility. This performance gap highlights the sensitivity of professional service firms to delayed government procurement cycles.
Forrester Research posted a 9% year-over-year decline in third-quarter revenue, with an 89% retention rate. The firm now projects a 2026 earnings-per-share range of $0.77 to $0.82 while maintaining total revenue guidance of $350 million to $360 million.
The players
Forrester Research
A research and advisory firm providing market analysis and consulting services to business and technology leaders.
The details
The revenue shortfall was concentrated in the firm's consulting arm, which experienced a 31% decline. Research revenue also slipped by 3%. To address the contract-value volatility, management has widened the expected year-end range from a 2% decline to 2% growth, banking on the fourth quarter to account for 40% of the year's total bookings.
Timeline
Q3 2026 revenue fell 9% year over year.
Full-year 2026 EPS is now guided to a range of $0.77 to $0.82.
The fourth quarter of 2026 is expected to account for 40% of annual bookings.
Market Landscape
Forrester Research's adjusted contract-value outlook illustrates how firm-wide performance remains tethered to the timing of the federal government's annual budget appropriation cycle. This sensitivity underscores a wider industry trend where professional service firms face uneven revenue realization due to public sector procurement lags.
Operators should monitor fourth-quarter bookings, which now carry a heavier weight as the firm attempts to hit its narrowed year-end contract-value guidance. Businesses reliant on government contracts should evaluate whether their revenue forecasts account for similar timing risks in federal procurement.
The takeaway
Management's reliance on a strong fourth quarter suggests that year-end closing strategies for professional service contracts remain critical to hitting performance floors. Monitor the company's progress toward the 40% annual bookings target through the end of the year to assess institutional stability.
Further reading
For broader trends on market performance, see Public Companies.
Source note: This article includes information reported by TokenPost.
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