Pearson plc reported its 2025 fourth‑quarter results, posting headline revenue of £3.577 billion, up 1% from the same period last year, while underlying sales grew 4% for the full year.
Profit before tax fell to £457 million, a decline from £510 million in 2024, and profit attributable to equity holders dropped to £335 million, or 50.7 pence per share, versus £434 million, or 63.5 pence, in the prior year. Adjusted earnings per share, however, rose 4% year‑over‑year to 64.5 pence, reflecting disciplined cost management and a favorable mix of higher‑margin business.
Operating profit increased to £614 million, a 6% rise, and the operating margin expanded from 16.9% to 17.2%. The growth was driven by strong performance in the Virtual Learning segment, which benefited from increased demand for digital learning solutions, and by continued investment in AI integration across Pearson’s product portfolio.
For 2026, Pearson is guiding for mid‑single‑digit underlying sales growth and an adjusted operating profit of £640 million to £685 million. The company also projects a mid‑single‑digit underlying sales growth CAGR and sustained margin improvement of about 40 basis points per annum, signalling confidence in its AI‑driven enterprise strategy.
Chief Executive Omar Abbosh said, “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.” He added, “The partnerships we secured with leading technology companies are a recognition of Pearson’s unique role at the intersection of education, skills and workforce development, underpinned by our unrivalled strength in assessments which positions us to deliver meaningful shareholder value over the medium term.”
Investors reacted cautiously, with concerns that the decline in pre‑tax profit and profit attributable to equity holders, despite modest sales growth, may signal challenges ahead. The company’s guidance, however, reflects a belief that its AI and enterprise initiatives will drive future growth and margin expansion.
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