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Pearson PLC (GB:PSON)
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Pearson (PSON) AI Stock Analysis

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GB:PSON

Pearson

(LSE:PSON)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
1,032.00p
▲(7.66% Upside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by steady but not accelerating fundamentals—strong operating profitability offset by low growth, weaker net margin, rising leverage, and softer 2025 free cash flow. Earnings call guidance adds support via clear mid-single-digit growth and profit/cash-conversion targets, while technicals remain a headwind with the stock below key longer-term moving averages and negative MACD. Valuation is reasonable with a mid-teens/high-teens P/E and a ~2.5% dividend yield.
Positive Factors
Strong profitability and margins
Sustained high gross and healthy operating margins reflect durable unit economics from digital courseware and assessment services. Strong margins support reinvestment in product development, fund shareholder returns and cushion earnings during modest revenue swings, underpinning long-term profitability.
Assessment franchise with contracted, recurring revenue
Long-term assessment contracts and government/public-sector relationships generate recurring, per-test and multi-year fees with high switching costs. This creates a stable, defensible revenue base that reduces top-line cyclicality and supports predictable cash flows over the medium term.
AI-led product launches, partnerships and targeted M&A
Strategic AI product rollouts, enterprise partnerships and the eDynamic Learning acquisition expand addressable markets in skilling and enterprise learning. These structural moves accelerate digital adoption, broaden offerings and improve cross-sell potential, supporting sustainable revenue and margin expansion.
Negative Factors
Rising leverage reduces financial flexibility
A material rise in leverage over a single year tightens balance-sheet flexibility and raises funding risk for strategic investments or buybacks. Higher net debt increases interest exposure and reduces buffer against cycles, limiting optionality for further M&A or investment if cash weakens.
Sharply weaker free cash flow and mixed cash conversion
A large FCF drop and suboptimal cash conversion versus operating profit indicate volatility from working capital, capex timing or other uses. This undermines the reliability of earnings-to-cash conversion, constraining sustainable funding for growth, dividends and buybacks over the medium term.
Low revenue growth and earnings volatility
Persistent low top-line momentum and a notable net margin decline signal sensitivity to mix, FX and below-the-line items. Limited revenue growth constrains operating leverage benefits and elevates the challenge of delivering sustained EPS growth even with healthy underlying margins.

Pearson (PSON) vs. iShares MSCI United Kingdom ETF (EWC)

Pearson Business Overview & Revenue Model

Company DescriptionPearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Higher Education segment provides the US, Canadian, and international higher education courseware businesses. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Pearson college, and apprenticeships. Pearson plc was founded in 1844 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyPearson generates revenue through multiple key streams, primarily focused on the sale of educational content and services. The company's revenue model includes direct sales of print and digital textbooks, subscriptions to its online learning platforms, and fees for standardized assessments and testing services. Additionally, Pearson partners with educational institutions and organizations to provide tailored learning solutions, which contribute to its revenue. The company has also been investing in digital transformation, moving towards a more subscription-based model, which allows for recurring revenue from its digital services. Strategic partnerships with universities and educational technology firms enhance Pearson's offerings and market reach, further bolstering its financial performance.

Pearson Earnings Call Summary

Earnings Call Date:Feb 27, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: Pearson reported steady revenue and profit growth, margin expansion, strong free cash generation, active capital returns, significant enterprise partnership wins and tangible AI-driven efficiency gains. Key challenges highlighted include a one-off GBP 87m Higher Education platform impairment, a near-term A&Q contract headwind (New Jersey) and competitive pressures in Higher Education. Management provided clear 2026 guidance (mid-single-digit sales growth; adjusted operating profit GBP 640–685m; free cash conversion 90–100%) and emphasized continued investment in AI, enterprise skilling and early careers, suggesting confidence in medium-term progression despite short-term phasing and one-off costs.
Q4-2025 Updates
Positive Updates
Revenue and Profit Growth
Group underlying sales grew 4% in FY2025 and adjusted operating profit increased 6% to GBP 614m, demonstrating continued top-line and profit progression.
Margin Expansion and EPS Progress
Adjusted operating margin expanded from 16.9% to 17.2% (up ~30 basis points) and adjusted EPS increased 4% to 64.5p (EPS up 9% at constant FX).
Strong Cash Generation and Capital Returns
Free cash flow increased 8% with cash conversion of 125% including state aid recovery (98% excluding state aid); net debt GBP 1.1bn with leverage 1.3x; dividend increased 5% and a further GBP 350m share buyback commenced.
Virtual Learning Outperformance
Virtual Learning delivered robust growth (sales up 18% in H2) with fall enrollments up 13% and margins improving to 16%, driven by enrollment platform enhancements, marketing and career academies.
Enterprise Partnerships and Backlog
Signed nine major enterprise partnerships in 2025 (blue-chip tech and services companies), creating hundreds of millions of dollars of incremental revenue commitments through 2030 and a growing revenue backlog across AMQ, ELL and ELS.
Assessment & Qualifications Strength
Assessment & Qualifications delivered 4% growth overall with margins maintained at c.23%; renewals rate strong at 96% and average annual new contract value metric at GBP 33m.
AI Adoption and Operational Efficiency
Company embedded AI across products and operations: content editing time reduced >=40%, translation costs down ~33%, content alignment costs down ~25%, AI customer agents handled >130,000 interactions and reduced contact volumes by ~40% where deployed; c.200bps margin gained from cost savings in 2025.
Strategic Investments and M&A
Continued tech/product investment (approx. GBP 1bn product & technology cash spend) and inorganic expansion with acquisition of eDynamic Learning (USD 225m) to bolster early careers/Career and Technical Education offerings.
Negative Updates
One-off Higher Education Impairment
Statutory profit declined 6% due largely to a noncash one-off impairment of GBP 87m related to convergence of Higher Education courseware platforms; company expects a mechanical circa GBP 15m p.a. profit benefit over the next ~6 years.
Contract Loss and Near-Term A&Q Headwinds
Loss of the New Jersey contract and PDRI headwinds negatively impact A&Q in Q1 2026; company expects A&Q to be down in Q1 before turning positive later in the year.
Net Debt and Cash Deployment
Net debt increased by GBP 0.2bn year-on-year to GBP 1.1bn due to share buybacks (including historical returns of GBP 1.4bn since 2020), acquisitions and dividends, reducing some near-term balance sheet flexibility.
Higher Education Competitive Pressures
Higher Education faces competitive pressure and adoption challenges versus peers (e.g., peers reporting faster Inclusive Access growth); company acknowledges historical product and channel execution gaps and is incurring convergence and transformation costs to address them.
Seasonality and Phasing Risk
Growth is H2-weighted again in 2026 guidance, with higher-than-average transformation costs weighted to H1; phasing risk could affect quarterly results despite full-year mid-single-digit growth guidance.
Market Volume Pressures in PTE
Global PTE market volumes declined by ~15%, although Pearson maintained PTE revenue levels, indicating underlying market weakness that required market share defense.
Company Guidance
Pearson guided to a mid‑single‑digit increase in underlying sales for 2026 with adjusted operating profit of GBP 640–685m (at end‑2025 FX), free cash conversion of 90–100%, an effective tax rate of ~25% and interest around GBP 80m, while reiterating medium‑term targets of mid‑single‑digit CAGR sales, margin improvement averaging ~40bps p.a. and 90–100% average free cash conversion; the 2026 plan includes business‑specific guidance (A&Q low‑ to mid‑single digit, Virtual Learning stronger than 2025, Higher Ed and English ahead of 2025, ELS growth driven by BQ and Enterprise Solutions), H2‑weighted phasing, higher transformation investment weighted to H1, and sits against 2025 results of underlying sales +4%, underlying profit +6%, adjusted operating profit GBP 614m, margin 17.2% (from 16.9%), adjusted EPS 64.5p (+4% or +9% at constant FX), free cash conversion 125% (98% ex state aid), net debt GBP 1.1bn (leverage 1.3x), GBP 350m share buyback commenced and a GBP 87m one‑off impairment that yields ~GBP 15m p.a. mechanical profit benefit.

Pearson Financial Statement Overview

Summary
Solid profitability with strong gross margin (~52%) and healthy operating performance, but overall quality is tempered by low revenue growth, a 2025 step-down in net margin, rising leverage (debt-to-equity up to ~0.52), and a sharp 2025 decline in free cash flow.
Income Statement
74
Positive
Revenue has been broadly stable with low growth (2025 up ~1.6% after modest declines in 2023–2024), indicating steady demand but limited top-line momentum. Profitability is a clear positive: gross margin improved over time and remains strong (about 52% in 2025), while operating profitability is healthy (2025 operating margin ~14% and EBITDA margin ~30%). The main drawback is earnings volatility: net margin fell to ~9.4% in 2025 from ~12.2% in 2024, suggesting higher costs, mix, or below-the-line pressure despite solid operating performance.
Balance Sheet
63
Positive
Leverage is moderate but rising: debt-to-equity increased to ~0.52 in 2025 from ~0.36 in 2024, reducing balance-sheet flexibility versus prior years. Equity remains sizable (about £3.65B in 2025), which supports financial resilience, but return on equity has eased to ~9.2% in 2025 from ~10.7% in 2024, indicating slightly weaker capital efficiency. Overall, the balance sheet looks serviceable, but the direction of leverage is the key watch item.
Cash Flow
58
Neutral
Cash generation is generally solid relative to earnings (free cash flow was ~96% of net income in 2025), supporting quality of profits. However, free cash flow fell sharply in 2025 (down ~36% year over year) even as operating cash flow rose, pointing to less favorable working capital/capex timing or other cash uses. Cash conversion vs operating profit is only moderate (2025 operating cash flow is ~59% of operating profit), which suggests cash outcomes can fluctuate year to year.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.58B3.55B3.67B3.84B3.43B
Gross Profit1.86B1.81B1.83B1.79B1.68B
EBITDA1.08B1.09B1.07B930.00M751.00M
Net Income335.00M434.00M378.00M242.00M177.00M
Balance Sheet
Total Assets6.46B6.89B6.73B7.31B7.34B
Cash, Cash Equivalents and Short-Term Investments333.00M543.00M312.00M543.00M937.00M
Total Debt1.90B1.47B1.16B1.22B1.40B
Total Liabilities2.79B2.84B2.74B2.89B3.06B
Stockholders Equity3.65B4.04B3.97B4.40B4.27B
Cash Flow
Free Cash Flow661.00M503.00M399.00M304.00M150.00M
Operating Cash Flow690.00M627.00M525.00M361.00M326.00M
Investing Cash Flow-277.00M-131.00M-301.00M13.00M-80.00M
Financing Cash Flow-609.00M-241.00M-450.00M-804.00M-414.00M

Pearson Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price958.60
Price Trends
50DMA
970.27
Negative
100DMA
1004.14
Negative
200DMA
1037.83
Negative
Market Momentum
MACD
-0.31
Negative
RSI
56.01
Neutral
STOCH
71.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PSON, the sentiment is Neutral. The current price of 958.6 is above the 20-day moving average (MA) of 923.07, below the 50-day MA of 970.27, and below the 200-day MA of 1037.83, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 71.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:PSON.

Pearson Risk Analysis

Pearson disclosed 29 risk factors in its most recent earnings report. Pearson reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Pearson Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£358.33M15.8411.01%3.26%-11.68%-40.06%
71
Outperform
£9.92B141.891.20%2.34%15.73%-76.05%
71
Outperform
£46.68B23.0670.68%2.13%2.48%3.23%
65
Neutral
£6.01B18.6411.94%2.32%-0.82%30.81%
65
Neutral
£143.03M18.6718.23%1.09%-21.19%-29.54%
63
Neutral
£372.46M6.416.31%0.53%-6.22%-6.69%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PSON
Pearson
958.60
-392.41
-29.05%
GB:BMY
Bloomsbury Publishing
440.00
-128.02
-22.54%
GB:FUTR
Future plc
402.00
-448.26
-52.72%
GB:INF
Informa
779.00
-20.66
-2.58%
GB:SAA
M&C Saatchi plc
118.00
-55.83
-32.12%
GB:REL
RELX plc
2,596.00
-1,166.79
-31.01%

Pearson Corporate Events

Regulatory Filings and Compliance
Pearson Confirms Share Capital and Voting Rights for FCA Disclosure
Neutral
Mar 2, 2026

Pearson PLC reported that, as of the close of business on 28 February 2026, it had 630,257,588 ordinary shares of 25p each in issue, with each share carrying one vote and no shares held in treasury. The company noted that this share count should be used by investors as the denominator when assessing disclosure obligations under the FCA’s Disclosure and Transparency Rules, underscoring ongoing regulatory compliance and providing clarity for shareholders monitoring their notifiable stakes.

The disclosure clarifies Pearson’s current voting rights base, which is important for institutional investors and other significant shareholders when determining whether changes in their holdings trigger reporting duties. By confirming that no shares are held in treasury, the company signals that all issued shares are currently in the market, which can affect calculations of voting power and ownership percentages among stakeholders.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1300.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels Newly Repurchased Shares Under £350m Buyback Plan
Positive
Mar 2, 2026

Pearson has repurchased 140,106 ordinary shares on the London Stock Exchange at an average price of 953.51p per share, with prices ranging between 926.60p and 970.00p. The shares, bought through Citigroup Global Markets, will be cancelled as part of the first £175 million tranche of the company’s broader £350 million share buyback programme, signaling continued capital returns and a reduction in the overall share count.

By cancelling the acquired shares rather than holding them in treasury, Pearson will effectively increase earnings per share over time, assuming stable profits. The move underscores management’s confidence in the company’s valuation and ongoing strategy, while providing direct benefits to remaining shareholders through a more efficient capital structure and potentially enhanced shareholder value.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1032.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Advances £350m Buyback With Fresh Share Repurchase
Positive
Feb 27, 2026

Pearson has repurchased 166,997 of its ordinary shares on the London Stock Exchange at an average price of 953.30 pence per share, with prices ranging between 938.80 pence and 965.00 pence. The company intends to cancel these shares, effectively reducing its share count and potentially enhancing earnings per share for investors.

The transaction forms part of the first £175 million tranche of Pearson’s £350 million share buyback programme, executed through Citigroup Global Markets. The ongoing buyback underscores management’s commitment to returning capital to shareholders and signals confidence in the company’s financial position and long-term strategy.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Pearson lifts profit, cash flow and dividend as AI strategy and buybacks underpin upbeat 2026 outlook
Positive
Feb 27, 2026

Pearson reported underlying sales growth of 4% in 2025 to £3.58bn and a 6% rise in adjusted operating profit to £614m, lifting its margin to 17.2% and supporting an 8% increase in free cash flow and a 5% dividend rise. The group highlighted strong performances in virtual learning, assessments and enterprise skills, while absorbing a one-off impairment tied to platform consolidation that is expected to improve Higher Education profitability over time.

The company underscored its push into AI-powered products and enterprise solutions, securing eight major partnerships including a new tie-up with Salesforce, and completed a £350m share buyback while starting another £350m programme in early 2026. Backed by a solid balance sheet and new $800m credit facility, Pearson guided to mid-single digit sales growth, higher adjusted operating profit and robust cash conversion in 2026, reinforcing its positioning at the intersection of education, skills and an AI-enabled labour market.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels New Batch of Shares in Ongoing £350m Buyback
Positive
Feb 26, 2026

Pearson has repurchased 201,359 ordinary shares on the London Stock Exchange at an average price of 942.07 pence per share as part of its ongoing capital return programme. The shares, bought through Citigroup Global Markets, will be cancelled, reducing the company’s share count and potentially enhancing earnings per share and shareholder value over time.

This latest transaction falls within the first £175 million tranche of Pearson’s £350 million share buyback, first outlined in January 2026 as a signal of balance sheet strength and confidence in future cash generation. For investors, the continued execution of the buyback underlines Pearson’s commitment to shareholder returns and may support the stock by providing incremental demand in the market.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Advances £350m Buyback With New Share Repurchases
Positive
Feb 25, 2026

Pearson has repurchased 191,208 of its 25 pence ordinary shares on the London Stock Exchange at an average price of 932.42 pence, with prices ranging between 918.00 pence and 947.00 pence per share. The company plans to cancel these shares, reducing its share count and potentially enhancing earnings per share and capital returns metrics.

These purchases form part of the first £175 million tranche of Pearson’s £350 million share buyback programme being executed through Citigroup Global Markets. The ongoing buyback underlines management’s confidence in the business and its cash generation, and signals a continued focus on shareholder value, which is closely watched by investors in the education and publishing sector.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 260,000 Shares in Ongoing £350 Million Buyback
Positive
Feb 24, 2026

Pearson has repurchased 260,125 of its ordinary shares on the London Stock Exchange at an average price of 928.94 pence per share on 23 February 2026, with prices ranging between 922.20 pence and 935.00 pence. The shares, bought through Citigroup Global Markets, will be cancelled, reducing the company’s share count.

These transactions form part of the first £175 million tranche of Pearson’s previously announced £350 million share buyback programme, signalling continued efforts to return capital to investors. The cancellation of shares should provide incremental support to earnings per share and underscores management’s confidence in the company’s valuation and cash-generation profile.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Advances £350m Buyback With Fresh Share Repurchase and Cancellation
Positive
Feb 23, 2026

Pearson plc has continued executing its £350 million share buyback programme, repurchasing 211,629 ordinary shares on 20 February 2026 via Citigroup Global Markets at an average price of 928.39 pence. The company plans to cancel these shares, which form part of the first £175 million tranche, effectively reducing the share count and signalling ongoing efforts to return capital to shareholders and support its equity valuation.

The latest transaction underscores Pearson’s use of balance sheet capacity to enhance capital efficiency while maintaining its presence on the London Stock Exchange. For investors, the cancellation of repurchased stock is typically supportive of earnings per share over time and may be interpreted as management’s confidence in the company’s longer-term prospects in the competitive education and digital learning market.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Stock Buyback
Pearson Cancels 260,125 Shares in First Tranche of £350m Buyback
Positive
Feb 20, 2026

Pearson has repurchased 260,125 of its ordinary shares on the London Stock Exchange at an average price of 927.49 pence per share, with the trades executed by Citigroup Global Markets. The company plans to cancel these shares, reducing its share count as part of the first £175 million tranche of a wider £350 million share buyback programme announced in January, a move that typically signals confidence in the balance sheet and supports earnings per share for investors.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 227,609 Shares in Latest Phase of £350m Buyback
Positive
Feb 19, 2026

Pearson has repurchased 227,609 of its 25 pence ordinary shares on the London Stock Exchange at an average price of 928.20 pence, with prices ranging between 921.80 pence and 937.00 pence per share. The company plans to cancel these shares, reducing its share count and potentially enhancing earnings per share for remaining investors.

The transaction is part of the first £175 million tranche of Pearson’s previously announced £350 million share buyback programme being executed via Citigroup Global Markets. The continued execution of the buyback underlines management’s focus on returning capital to shareholders and signals confidence in the company’s financial position and long‑term strategy.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels Shares After Fresh Buyback as £350m Programme Progresses
Positive
Feb 18, 2026

Pearson plc has repurchased 114,747 of its ordinary shares on the London Stock Exchange at an average price of 920.60 pence per share, with prices ranging between 913.40 pence and 928.00 pence. The company plans to cancel these shares, thereby reducing its share count.

The transaction is part of the first £175 million tranche of Pearson’s £350 million share buyback programme, executed via Citigroup Global Markets. By shrinking its equity base through ongoing repurchases, Pearson is returning capital to shareholders and potentially enhancing earnings per share, underscoring management’s focus on capital discipline and shareholder returns.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 250,000 Shares in Ongoing £350m Buyback
Positive
Feb 17, 2026

Pearson plc has repurchased 250,000 of its 25p ordinary shares on the London Stock Exchange at an average price of 911.23p per share, with prices ranging between 896.40p and 924.40p. The shares, bought through Citigroup Global Markets Limited on 16 February 2026, will be cancelled, reducing the company’s share count.

This transaction forms part of the first £175 million tranche of Pearson’s £350 million share buyback programme announced in January 2026. The ongoing buyback underscores management’s focus on capital returns and is likely to enhance earnings per share and support the share price, benefiting existing shareholders over time.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels Latest £175m Tranche Buyback Shares After Fresh Market Repurchase
Positive
Feb 16, 2026

Pearson plc has repurchased 213,591 ordinary shares on the London Stock Exchange on 13 February 2026 at an average price of 913.42 pence, with prices ranging between 899.80 pence and 925.00 pence per share, and will cancel all of the acquired stock. The transaction, executed through Citigroup Global Markets, forms part of the first £175 million tranche of Pearson’s £350 million share buyback programme announced in January, underscoring the company’s ongoing effort to return excess capital and enhance earnings per share by reducing its share count.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 213,736 Shares in Ongoing £350 Million Buyback Programme
Positive
Feb 13, 2026

Pearson plc has repurchased 213,736 of its ordinary shares on the London Stock Exchange at an average price of 908.13 pence per share, with prices ranging between 898.20 pence and 920.00 pence. The shares, bought through Citigroup Global Markets Limited on 12 February 2026, will be cancelled, reducing the company’s share count.

These transactions form part of the first £175 million tranche of Pearson’s £350 million share buyback programme announced in January 2026. The cancellation of repurchased shares is expected to enhance capital returns to investors by boosting earnings per share and underlines management’s confidence in the company’s financial position and long-term strategy.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels Shares After Fresh Buyback as £350m Programme Progresses
Positive
Feb 12, 2026

Pearson has repurchased 321,829 ordinary shares on the London Stock Exchange at an average price of 889.17 pence per share, with prices ranging from 881.00 pence to 904.00 pence. The shares, bought through Citigroup Global Markets, will be cancelled, reducing the company’s share count.

The transaction is part of the first £175 million tranche of Pearson’s previously announced £350 million share buyback programme. The move underscores the group’s ongoing capital-return strategy and may enhance earnings per share, signalling confidence in its financial position to shareholders and the wider market.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 301,800 Shares in Continued £350m Buyback
Positive
Feb 11, 2026

Pearson plc has bought back 301,800 of its ordinary shares on the London Stock Exchange at an average price of 905.69 pence per share, with prices ranging between 890.60 pence and 916.20 pence. The purchased shares will be cancelled, reducing the company’s share count and potentially enhancing earnings per share for remaining investors.

The transaction forms part of the first £175 million tranche of Pearson’s wider £350 million share buyback programme, which is being executed through Citigroup Global Markets. This continued execution of the buyback underlines management’s capital-return strategy and signals confidence in the company’s financial position and long-term prospects for shareholders.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 274,400 Shares in Ongoing £350 Million Buyback
Positive
Feb 10, 2026

Pearson plc has repurchased 274,400 of its ordinary shares on the London Stock Exchange at an average price of 899.22 pence per share, with prices ranging between 889.80 pence and 907.00 pence. The shares, bought through Citigroup Global Markets Limited on 9 February 2026, will be cancelled, reducing the company’s share capital.

This transaction is part of the first £175 million tranche of Pearson’s £350 million share buyback programme announced in January 2026. The ongoing buyback underscores the group’s capital-return strategy and is likely to enhance earnings per share over time by shrinking the number of shares in issue, benefiting existing shareholders.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 301,800 Shares as Part of £350m Buyback Programme
Positive
Feb 9, 2026

Pearson has repurchased 301,800 ordinary shares on the London Stock Exchange at an average price of 889.23 pence per share, with prices ranging between 874.80p and 898.00p, via Citigroup Global Markets. The company plans to cancel these shares, and the transaction forms part of the first £175 million tranche of a £350 million share buyback programme announced in January 2026, underscoring continued efforts to return capital to investors and optimise its equity base.

By reducing the number of shares in issue, Pearson’s ongoing buyback is expected to be accretive to earnings per share and may support the share price, directly benefiting remaining shareholders. The use of a major investment bank to execute the trades highlights the scale and formality of the programme, signalling management’s confidence in the company’s financial position and long-term prospects.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Advances £350m Buyback With Fresh Share Repurchases
Positive
Feb 6, 2026

Pearson plc has continued execution of its previously announced £350 million share buyback programme, confirming the repurchase on 4 February 2026 of 350,210 ordinary shares on the London Stock Exchange via Citigroup Global Markets at an average price of 889.45p per share, with the shares to be cancelled. The trades, which form part of the first £175 million tranche of the programme, underscore the company’s ongoing capital return strategy and are expected to reduce the number of shares in issue, potentially enhancing earnings per share and signalling management’s confidence in the business to shareholders and the wider market.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 308,700 Shares in Ongoing £350m Buyback Programme
Positive
Feb 6, 2026

Pearson plc has repurchased 308,700 of its ordinary shares on the London Stock Exchange at an average price of 895.88 pence per share, with prices ranging between 886.40 pence and 903.00 pence. The shares, bought through Citigroup Global Markets Limited on 5 February 2026, will be cancelled and form part of the first £175 million tranche of Pearson’s £350 million share buyback programme, signalling continued efforts to optimise its capital structure and return cash to shareholders, which may enhance earnings per share and support the company’s valuation.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 445,300 Shares in Ongoing £350m Buyback Programme
Positive
Feb 5, 2026

Pearson plc has repurchased 445,300 of its ordinary shares on the London Stock Exchange at an average price of 914.75 pence per share, with prices ranging between 889.60 pence and 962.80 pence. The shares, bought through Citigroup Global Markets Limited on 3 February 2026, will be cancelled and form part of the first £175 million tranche of Pearson’s £350 million share buyback programme, signalling continued efforts to return capital to shareholders and potentially enhance earnings per share by reducing the company’s share count.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £966.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Stock Buyback
Pearson Cancels 445,300 Shares in Ongoing £350m Buyback Programme
Positive
Feb 4, 2026

Pearson plc has repurchased 445,300 of its 25 pence ordinary shares on the London Stock Exchange via Citigroup Global Markets at an average price of 914.75p, within a trading range of 889.60p to 962.80p, on 3 February 2026. The repurchased shares will be cancelled and the transaction forms part of the first £175 million tranche of Pearson’s previously announced £350 million share buyback programme, signalling continued capital returns to shareholders and a reduction in the company’s share count, which may be supportive of earnings per share and shareholder value over time.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1022.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 236,580 Shares in Ongoing £350m Buyback Programme
Positive
Feb 3, 2026

Pearson plc has repurchased 236,580 of its ordinary shares on the London Stock Exchange at an average price of 962.26 pence per share, with prices ranging between 954.40 pence and 966.00 pence. The shares, acquired through Citigroup Global Markets Limited on 2 February 2026, will be cancelled and form part of the first £175 million tranche of Pearson’s £350 million share buyback programme announced in January, a move that reduces the company’s share count and signals continued capital returns to investors.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1022.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Regulatory Filings and Compliance
Pearson Confirms Current Voting Share Capital for FCA Disclosure Purposes
Neutral
Feb 2, 2026

Pearson plc has confirmed that, as of the close of business on 31 January 2026, it has 635,405,249 ordinary shares of 25p each in issue, all of which carry one vote per share at general meetings, and the company holds no shares in treasury. The company noted that this share capital figure should be used by investors as the denominator when calculating whether they must disclose holdings or changes in their interests under the UK Financial Conduct Authority’s disclosure and transparency rules, underscoring Pearson’s ongoing compliance with regulatory reporting requirements and providing clarity for shareholders monitoring their voting power and reporting obligations.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1022.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 209,850 Shares Under £350m Buyback Programme
Positive
Feb 2, 2026

Pearson plc has repurchased 209,850 of its 25 pence ordinary shares on the London Stock Exchange at an average price of 959.46 pence per share, with prices ranging between 948.20 pence and 964.80 pence. The shares, acquired through Citigroup Global Markets Limited on 30 January 2026, will be cancelled and form part of the first £175 million tranche of Pearson’s previously announced £350 million share buyback programme, underscoring the company’s continued efforts to return capital to shareholders and optimise its capital structure.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1022.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Advances £350m Share Buyback With Fresh £267m Repurchase
Positive
Jan 30, 2026

Pearson has continued executing its share buyback strategy, repurchasing 281,752 ordinary shares on 29 January 2026 on the London Stock Exchange through Citigroup Global Markets at an average price of 946.20 pence per share, with prices ranging between 938.20 pence and 952.80 pence. The company plans to cancel these shares, and the latest transaction forms part of the first £175 million tranche of a broader £350 million buyback programme announced earlier in January, underscoring management’s ongoing focus on capital returns and signalling confidence in the company’s valuation to shareholders and the wider market.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1017.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 205,000 Shares as Part of £350m Buyback Programme
Positive
Jan 29, 2026

Pearson plc has repurchased 205,000 of its ordinary shares on the London Stock Exchange at an average price of 944.30 pence per share, with prices ranging between 927.00 pence and 966.00 pence, through Citigroup Global Markets Limited on 28 January 2026. The company plans to cancel the repurchased shares, and the transaction forms part of the first £175 million tranche of its broader £350 million share buyback programme, signalling continued capital returns to shareholders and a move to reduce the company’s share count, which can enhance earnings per share and support the stock in the market.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1025.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 304,000 Shares in Ongoing £350m Buyback Programme
Positive
Jan 28, 2026

Pearson plc has repurchased 304,105 of its ordinary shares on the London Stock Exchange at an average price of 952.85p per share, with prices ranging between 938.00p and 968.80p. The shares, bought through Citigroup Global Markets Limited on 27 January 2026, will be cancelled and form part of the first £175 million tranche of Pearson’s ongoing £350 million share buyback programme, a capital return initiative that reduces the company’s share count and is likely to enhance earnings per share and signal management’s confidence to investors.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1017.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Continues £350m Buyback With Cancellation of 218,163 Shares
Positive
Jan 27, 2026

Pearson plc has repurchased 218,163 of its ordinary 25 pence shares on the London Stock Exchange at an average price of 969.03 pence per share, with prices ranging between 963.00 pence and 976.20 pence. The company will cancel the repurchased shares, which form part of the first £175 million tranche of its previously announced £350 million share buyback programme, signalling continued efforts to return capital to shareholders and reduce its share count, potentially enhancing earnings per share and supporting the stock in the market.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1000.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyStock Buyback
Pearson Cancels 158,694 Shares in Ongoing £350m Buyback Programme
Positive
Jan 26, 2026

Pearson plc has repurchased 158,694 of its ordinary shares on the London Stock Exchange at an average price of 964.14 pence per share, with prices ranging between 952.00 pence and 970.20 pence. The shares, bought through Citigroup Global Markets Limited on 23 January 2026, will be cancelled and form part of the first £175 million tranche of Pearson’s previously announced £350 million share buyback programme, signalling ongoing efforts to return capital to shareholders and reduce the company’s share count.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1000.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Stock Buyback
Pearson Cancels 250,000 Shares in Ongoing £350m Buyback Programme
Positive
Jan 23, 2026

Pearson plc has repurchased 250,000 of its ordinary shares on the London Stock Exchange at an average price of 960.72 pence per share, with prices ranging between 947.60 pence and 969.40 pence. The company will cancel the shares, and the transaction forms part of the first £175 million tranche of Pearson’s £350 million share buyback programme, signalling an ongoing capital return to shareholders and a reduction in the company’s share count that may enhance earnings per share over time.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1024.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Regulatory Filings and Compliance
Pearson Executive Buys Shares via U.S. Employee Stock Plan
Neutral
Jan 21, 2026

Pearson has disclosed that Tom ap Simon, President of Higher Education and Virtual Learning, purchased 502.7652 American Depositary Receipts (ADRs) in Pearson plc at a price of $11.934 per ADR, through the company’s U.S. Employee Stock Purchase Plan for the period from 1 July 2025 to 31 December 2025. The transaction, executed on 20 January 2026 on the New York Stock Exchange and totaling approximately $6,000, represents a routine managerial dealing disclosure and signals ongoing executive financial alignment with Pearson’s equity, in line with regulatory transparency requirements for persons discharging managerial responsibilities.

The most recent analyst rating on (GB:PSON) stock is a Hold with a £1004.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Pearson Delivers 2025 Growth in Line With Guidance as AI and Enterprise Deals Drive Momentum
Positive
Jan 14, 2026

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.

Executive/Board Changes
Pearson CEO Omar Abbosh Receives LTIP Share Award and Sells Portion to Cover Taxes
Neutral
Jan 6, 2026

Pearson plc has disclosed that its Chief Executive Officer, Omar Abbosh, has received an allotment of 472,951 ordinary shares following the vesting of awards under the company’s Long-Term Incentive Plan, with a portion of 52,025 shares sold on the London Stock Exchange to meet associated tax liabilities at a price of £10.5013 per share. The transaction underscores Pearson’s continued use of equity-based remuneration to align executive incentives with shareholder interests and reflects standard governance practice in the UK market, with no change in the company’s underlying operations but a modest adjustment to the CEO’s direct shareholding structure.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1440.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Regulatory Filings and Compliance
Pearson Confirms Share Capital and Voting Rights for Disclosure Purposes
Neutral
Jan 2, 2026

Pearson PLC has confirmed that, as of 31 December 2025, it has 635,814,880 ordinary shares of 25 pence each admitted to trading, with each share carrying one vote at general meetings and no shares held in treasury. This updated share capital figure serves as the official denominator for investors when calculating whether they must disclose holdings or changes in their interests under the UK Financial Conduct Authority’s Disclosure and Transparency Rules, reinforcing regulatory compliance and providing clarity to shareholders on the company’s voting rights structure.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1440.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Other
Pearson Director Acquires ADRs, Signaling Confidence
Positive
Dec 15, 2025

Pearson plc announced a transaction involving Alex Hardiman, a Non-Executive Director, who purchased 1,310 American Depositary Receipts (ADRs) of the company at a price of $13.9650 per ADR. This transaction, conducted on the New York Stock Exchange, reflects managerial confidence in the company’s market position and could signal positive expectations for Pearson’s future performance.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1440.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Other
Pearson Director Acquires ADRs, Signaling Confidence
Positive
Dec 12, 2025

Pearson plc announced a transaction involving the purchase of 875 American Depositary Receipts (ADRs) by Arden Hoffman, a Non-Executive Director of the company. The transaction, valued at $11,926.25, took place on December 10, 2025, on the New York Stock Exchange. This purchase highlights insider confidence in the company’s stock and may influence stakeholder perceptions and market positioning.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1440.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Pearson Announces Strategic Board Committee Changes
Positive
Dec 5, 2025

Pearson has announced changes to its Board Committees, with Costis Maglaras, a Non-Executive Director, being appointed to the Audit Committee and the Reputation & Responsibility Committee effective from January 1, 2026. This strategic move is part of Pearson’s ongoing efforts to strengthen its governance and enhance its operational oversight, potentially impacting its industry positioning and stakeholder relations positively.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1187.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 02, 2026