Pearson plc reported its full‑year 2025 results on February 27, 2026, showing underlying sales up 4% year‑over‑year to £3,552 million and adjusted operating profit rising 6% to a range of £610‑£615 million. Free cash flow for the year reached £527 million, an 8% increase from 2024, while operating margin expanded from 16.9% to 17.2%.
The 4% sales growth was driven by broad‑based gains across Pearson’s portfolio, with the company’s digital‑first strategy and AI‑powered learning tools contributing to higher engagement. Management noted that the acceleration to 8% in Q4 was supported by strong demand in core segments, offsetting the impact of the loss of a New Jersey contract that will be a headwind for the Assessment & Qualifications division in H1 2026.
Operating profit and margin expansion were largely the result of disciplined cost management and the scale of AI initiatives, which improved pricing power and operational leverage. One‑off impairment charges and currency movements partially offset these gains, but the company’s overall profitability remained robust.
Omar Abbosh, Pearson’s CEO, said, "In 2025 we successfully delivered against our financial and strategic priorities by expanding our partnerships, growing our Enterprise reach, and advancing the use of AI to improve learning and upskilling. All of this was achieved thanks to the strong delivery of our people, who have been focused on executing for our customers. We enter 2026 with momentum, are excited about the opportunities that lie ahead, and remain well positioned to deliver value to our stakeholders."
The CFO departed on February 27, 2026, and the company highlighted the New Jersey contract loss as a headwind for the upcoming year. Despite these challenges, management expressed confidence in the company’s trajectory, citing continued investment in AI and digital capabilities as key growth drivers.
Investors reacted with caution, holding shares near their 52‑week high. The market’s muted response reflects the balance between the company’s solid earnings beat, margin expansion, and the headwinds identified by management, such as the contract loss and executive transition.
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