Pearson plc reported its 2025 preliminary financial results, showing underlying sales of £3.577 billion, a 4 % year‑over‑year increase, and an adjusted operating profit of £614 million, up 6 % from the prior year. Adjusted earnings per share rose to 64.5 p, a 4 % increase from 62.1 p in 2024.
Operating cash flow was £571 million and free cash flow £527 million. The slight decline in operating cash flow compared with the previous year was attributed to higher working‑capital requirements, while the operating margin expanded to 17.2 % from 16.9 % in 2024, reflecting improved pricing power and operational leverage.
The results were driven by strong performance in the enterprise learning and skills segment, which continued to gain traction through new AI‑powered offerings and partnerships with major technology firms such as Salesforce, Microsoft and Google Cloud. The company also maintained solid growth in its Assessment & Qualifications, Virtual Learning, Higher Education and English Language Learning businesses, although the enterprise segment was the primary contributor to the margin expansion.
Pearson reiterated its 2026 guidance, targeting mid‑single‑digit underlying sales growth and an adjusted operating profit range of £640 million to £685 million. Management highlighted the progress made in scaling AI across its product portfolio and the momentum in its enterprise offering, stating, “We delivered on our goals in 2025, making significant progress in scaling AI across our products and services and building tangible momentum in our enterprise offering.”
The company also announced the departure of CFO Sally Johnson and the appointment of Simon Robson as her successor, a change that signals a continued focus on financial discipline. Management noted that a loss of a significant U.S. student assessment contract remains a headwind, but the company believes its diversified portfolio and AI initiatives will offset the impact over the medium term.
Investor reaction to the announcement was muted, with the market largely viewing the results as in‑line with expectations. Analysts pointed to the loss of the U.S. contract as a short‑term headwind, while the steady guidance and AI strategy were seen as positive long‑term drivers.
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