Pearson Delivers 2025 Growth in Line With Guidance as AI and Enterprise Deals Drive Momentum

The latest announcement is out from Pearson ( (GB:PSON) ).

Pearson reported 4% underlying group sales growth for 2025, with momentum building in the fourth quarter as growth accelerated to 8%, supported by all business units. Adjusted operating profit is expected at £610–615 million, about 6% higher on an underlying basis, and free cash flow conversion exceeded 95%, reinforcing a strong balance sheet with net debt around £1.1 billion and a £0.1 billion state aid tax recovery. Assessment & Qualifications, Virtual Learning, Higher Education, English Language Learning and Enterprise Learning & Skills all grew for the year, with particularly strong Q4 performances in Virtual Learning and Enterprise Learning. Strategically, Pearson advanced its use of AI and expanded enterprise partnerships, launching the AI-powered Communication Coach within Microsoft 365, forming a new strategic partnership with IBM, winning a major vocational skilling contract in Saudi Arabia, and being chosen as the test delivery provider for Google Cloud certifications. Management said the company enters 2026 with solid momentum and confirmed its unchanged medium-term outlook of mid-single-digit underlying sales growth, steady margin expansion and strong cash conversion, underlining confidence in its positioning in professional upskilling and digital learning markets despite some contract headwinds in US student assessment.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1420.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Spark’s Take on GB:PSON Stock

According to Spark, TipRanks’ AI Analyst, GB:PSON is a Outperform.

Pearson’s overall stock score reflects a stable financial outlook with strong cash flow and profitability metrics. The company’s strategic initiatives and corporate events, such as share buybacks and board changes, bolster investor confidence. However, technical indicators suggest a bearish trend, and revenue growth challenges persist.

To see Spark’s full report on GB:PSON stock, click here.

More about Pearson

Pearson is a global lifelong learning company that provides digital content, assessments, qualifications and data-driven learning services aimed at helping individuals upskill and achieve better life outcomes. Its portfolio spans assessment and qualifications, virtual learning, higher education courseware, English language learning, and enterprise learning and skills, serving institutions, professionals and learners worldwide.

Average Trading Volume: 1,916,142

Technical Sentiment Signal: Buy

Current Market Cap: £6.71B

See more data about PSON stock on TipRanks’ Stock Analysis page.