Pearson (LSE:PSON) delivered 4% underlying sales growth at the group level in 2025, with performance strengthening into the final quarter as growth accelerated to 8% and contributions came from every division. The company expects adjusted operating profit of £610–615 million, representing roughly 6% underlying growth, while free cash flow conversion surpassed 95%. This supported a robust balance sheet, with net debt of about £1.1 billion and a £0.1 billion tax recovery linked to state aid.
Across the year, Assessment & Qualifications, Virtual Learning, Higher Education, English Language Learning, and Enterprise Learning & Skills all recorded growth. Momentum was particularly notable in the fourth quarter, when Virtual Learning and Enterprise Learning & Skills delivered standout performances. These results reflect rising demand for digital learning solutions and workforce-focused education.
From a strategic standpoint, Pearson continued to deepen its focus on artificial intelligence and enterprise partnerships. During the year, it introduced an AI-enabled Communication Coach integrated into Microsoft 365, announced a new strategic collaboration with IBM, secured a significant vocational training contract in Saudi Arabia, and was selected as the test delivery partner for Google Cloud certification programs. Management said the business enters 2026 with strong momentum and reiterated its unchanged medium-term targets, including mid-single-digit underlying revenue growth, gradual margin expansion, and consistently high cash conversion. While some headwinds remain in U.S. student assessment contracts, leadership expressed confidence in Pearson’s positioning within professional upskilling and digital learning markets.
Overall, Pearson’s outlook points to stable financial performance underpinned by strong cash generation and profitability. Ongoing strategic initiatives, along with corporate actions such as share buybacks and board updates, continue to support investor sentiment. That said, technical signals indicate a bearish trend in the share price, and revenue growth pressures have not fully eased.
More about Pearson
Pearson is a global lifelong learning group delivering digital learning content, assessments, qualifications, and data-driven education services. Its operations span assessment and qualifications, virtual learning, higher education courseware, English language learning, and enterprise learning and skills, serving institutions, employers, and learners around the world.
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