Pearson 2025 prelim profit up 6% on Virtual Learning strength

Pearson

27/02/2026 07:13

Overview

UK education company's prelim 2025 revenue slightly missed analyst expectations

Adjusted operating profit for 2025 rose 6% yr/yr

Company executing £350 mln share buyback program

Outlook

Pearson guides to mid-single digit sales growth for 2026 and beyond

Company expects 2026 adjusted operating profit of £640m-£685m

Pearson anticipates stronger growth in Virtual Learning for 2026

Result Drivers

SALES GROWTH - Underlying Group sales grew 4% driven by Virtual Learning and Enterprise Learning & Skills

COST SAVINGS - Adjusted operating profit increased 6% due to sales growth and cost savings, partially offset by investment and inflation

AI AND PARTNERSHIPS - Strategic progress in AI integration and partnerships with industry leaders like Salesforce

Company press release: ID:nRSa6200Ua

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Miss*
GBP 3.58 bln
GBP 3.61 bln (12 Analysts)
FY Adjusted Operating Profit
GBP 614 mln
FY Operating Cash Flow
GBP 571 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the consumer publishing peer group is "buy"

Wall Street's median 12-month price target for Pearson PLC is GBp1,170.00, about 21.8% above its February 26 closing price of GBp960.40

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)