UK's Pearson tops analyst expectations for H1 revenue
UK's Pearson tops analyst expectations for H1 revenue
Overview
UK education provider's H1 underlying revenue rose 4%, beating analyst expectations
Adjusted EPS for H1 rose 18%, supported by profit growth and share buyback
Company completed £350 mln share buyback and raised interim dividend by 5%
Outlook
Pearson reiterates 2026 guidance for mid-single digit underlying revenue growth
Company expects 2026 adj operating profit of £640m-£685m at FX rates as at end 2025
Pearson forecasts 2026 free cash flow conversion of 90%-100%
Result Drivers
VIRTUAL LEARNING - Co said 19% revenue growth was driven by strong enrolment momentum, targeted marketing investment and successful contract renewals
ENTERPRISE LEARNING & SKILLS - Co said 7% revenue growth was driven by vocational programme launches and strategic partnerships, including new agreements with Salesforce and Adobe
ASSESSMENT & QUALIFICATIONS - Co said segment returned to growth in Q2, supported by Clinical Assessment and UK & International Qualifications, but US Student Assessment declined due to contract loss
Company press release: ID:nRSe6501Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | GBP 1.78 bln | GBP 1.76 bln (4 Analysts) |
H1 Adjusted Operating Profit |
| GBP 276 mln |
|
H1 Dividend |
| GBP 0.08 |
|
H1 Operating Cash Flow |
| GBP 337 mln |
|
H1 Operating Profit |
| GBP 252 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "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 GBp1,300.00, about 0.6% above its July 30 closing price of GBp1,292.50
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago
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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.)