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Pearson PLC (PSO)
NYSE:PSO
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Pearson (PSO) Price & Analysis

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PSO Stock Chart & Stats

$14.66
-$0.29(-1.77%)
At close: 4:00 PM EST
$14.66
-$0.29(-1.77%)

Bulls Say, Bears Say

Bulls Say
Profitability & MarginsPearson’s strong margin profile (high gross and healthy operating/EBITDA margins) provides durable earnings resilience versus top-line cyclicality. Robust margins support reinvestment in products, fund buybacks/dividends and absorb pricing or volume swings, underpinning long-term cash generation and return on capital.
Free Cash Flow GenerationVery strong free cash conversion relative to accounting earnings gives Pearson sustained internal funding for investments, deleveraging and shareholder returns. High FCF reduces dependence on external finance, enabling strategic initiatives (platform consolidation, tech spend) without materially eroding financial flexibility.
Enterprise Partnerships & BacklogLarge strategic partnerships with major tech and services firms create multi-year contracted revenue visibility and distribution scale. These agreements, combined with an expanding enterprise backlog, support structural growth, cross-sell opportunities and higher-margin enterprise channels over several years.
Bears Say
Persistent Revenue DeclineMulti-year top-line declines signal structural demand or adoption challenges in core segments. Persistent revenue weakness undermines operating leverage, forces reliance on cost savings to sustain margins, and raises execution risk for growth plans that assume mid-single-digit CAGR without clearer evidence of reversing the trend.
Rising Net Debt And Interest ExposureNet debt growth and a large buyback increase leverage and interest cost sensitivity. Higher interest guidance (~GBP 80m) and reduced balance-sheet flexibility constrain ability to absorb shocks or accelerate strategic spend, making the firm more exposed to macro/FX shifts and limiting optionality for acquisitions or capex.
Execution, Phasing & Recognition RiskMaterial backlog and large enterprise agreements carry timing and recognition uncertainty. Delays or non-signing of deals, plus platform consolidation impairment and contract loss (New Jersey), increase volatility in reported revenue and cash flow, complicating mid-term forecasting and delivery of pledged growth targets.

Pearson News

PSO FAQ

What was Pearson PLC’s price range in the past 12 months?
Pearson PLC lowest stock price was $12.02 and its highest was $15.64 in the past 12 months.
    What is Pearson PLC’s market cap?
    Pearson PLC’s market cap is $8.99B.
      When is Pearson PLC’s upcoming earnings report date?
      Pearson PLC’s upcoming earnings report date is Aug 03, 2026 which is in 42 days.
        How were Pearson PLC’s earnings last quarter?
        Pearson PLC released its earnings results on Feb 27, 2026. The company reported $0.529 earnings per share for the quarter, beating the consensus estimate of $0.523 by $0.006.
          Is Pearson PLC overvalued?
          According to Wall Street analysts Pearson PLC’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Pearson PLC pay dividends?
            Pearson PLC pays a Semiannually dividend of $0.236 which represents an annual dividend yield of 2.11%. See more information on Pearson PLC dividends here
              What is Pearson PLC’s EPS estimate?
              Pearson PLC’s EPS estimate is 0.36.
                How many shares outstanding does Pearson PLC have?
                Pearson PLC has 601,140,500 shares outstanding.
                  What happened to Pearson PLC’s price movement after its last earnings report?
                  Pearson PLC reported an EPS of $0.529 in its last earnings report, beating expectations of $0.523. Following the earnings report the stock price went down -0.923%.
                    Which hedge fund is a major shareholder of Pearson PLC?
                    Currently, no hedge funds are holding shares in PSO
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Pearson PLC

                      Pearson plc is a prominent international provider of educational content, evaluations, and related services. Its operations span the globe, with a significant presence in regions such as the United Kingdom, the United States, Canada, the Asia Pacific, and various other European countries. The company structures its diverse offerings across five main divisions: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. The Assessment & Qualifications segment oversees a wide array of examinations and certifications. This includes professional and vocational testing through Pearson VUE, standardized student assessments for the US and UK (such as GCSEs and A-levels), clinical assessments, and various international academic qualifications. Virtual Learning is dedicated to digital education, delivering virtual school environments and managing online learning programs for institutions. The English Language Learning division focuses on English language instruction, offering the Pearson Test of English, institutional courseware, and online English learning solutions. The Higher Education segment is responsible for developing and distributing educational materials and resources specifically for post-secondary institutions across the US, Canada, and other international markets. Finally, Workforce Skills aims to equip individuals with career-ready competencies. Its portfolio features vocational qualifications like BTEC and GED, talent assessment tools such as TalentLens, workforce intelligence provided by Faethm, direct education through Pearson College, and apprenticeship programs. Founded in 1844, Pearson plc maintains its corporate headquarters in London, United Kingdom.

                      Pearson (PSO) Earnings & Revenues

                      PSO Company Deck

                      PSO Earnings Call

                      Q4 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call presented a broadly positive picture: Pearson delivered steady underlying revenue and profit growth, strong free cash generation, margin improvement, and considerable progress embedding AI and signing major enterprise partnerships that create a multi-year revenue backlog. Counterbalancing this are a non-cash GBP 87m impairment that reduced statutory profit, near-term A&Q headwinds from the New Jersey contract loss and PDRI, FX and interest cost pressures, and some execution/recognition timing risks around enterprise deal phasing. On balance, the highlights — recurring cashflows, margin progress, enterprise momentum and AI-driven efficiency gains — outweigh the near-term lowlights and one-off charges.View all PSO earnings summaries
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                      Ownership Overview

                      0.31%0.41%99.00%
                      Insiders
                      0.41% Other Institutional Investors
                      99.00% Public Companies and
                      Individual Investors
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