UK's Pearson falls over 5% after losing New Jersey contract

Pearson

14/01/2026 09:01

** Shares of British education company Pearson PSON.L down 5.5% at 1,016.5p - the top loser on FTSE 100 index .FTSE, which is up 0.31%

** Pearson reported that the firm's biggest division, Assessment & Qualifications, lost a contract with New Jersey, which will be a headwind in H1 2026

** "I'm a little bit surprised that the shares are down as much as they are, because they did accelerate at the end of the year," Kepler Cheuvreux analyst Conor O'Shea says

** O'Shea adds that while the contract loss might not mean weaker growth in 2026, it may translate into a second-half weighted growth

** Pearson reported sales growth of 4% for the year, with Q4 accelerating to 8%

** PSON has fallen about 21% in the last 12 months

 (Reporting by Yamini Kalia in Bengaluru)

 ((Yamini.Kalia@thomsonreuters.com))