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Pearson PLC (PSO)
NYSE:PSO

Pearson (PSO) Price & Analysis

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PSO Stock Chart & Stats

$13.04
-$0.29(-1.77%)
At close: 4:00 PM EST
$13.04
-$0.29(-1.77%)

Bulls Say, Bears Say

Bulls Say
High And Durable ProfitabilityPearson's sustained high gross and operating margins reflect a mix of digital products, assessments and services with built-in pricing power and low incremental content costs. Margins provide structural capacity to fund R&D, buybacks and platform consolidation while insulating cashflow through cyclical education demand.
Strong Free Cash Flow GenerationConsistently high FCF conversion and year-on-year FCF improvement demonstrate durable cash generation from subscription, assessment and enterprise streams. Strong cash supports the GBP 350m buyback, reinvestment in technology and cushions balance-sheet stress without depending solely on debt markets.
Enterprise Partnerships & AI-led Product ShiftMajor alliances (Google, Microsoft, Amazon, IBM, Deloitte etc.) plus ~GBP1bn tech spend and embedded AI create multi-year contractual backlog and product stickiness. This structural shift toward enterprise, platform and AI efficiencies increases predictable recurring revenue and scalability over the medium term.
Bears Say
Multi-year Revenue DeclineA three-year top-line contraction signals structural demand or market-share challenges that cost savings alone may not fully offset. Continued revenue declines force reliance on margin initiatives and backlog conversion, limiting durable organic growth and increasing execution dependence for the medium-term plan.
Rising Leverage And Interest ExposureNet debt build and higher interest expense reduce financial flexibility as Pearson pursues buybacks and tech investment. Rising leverage constrains ability to fund opportunistic M&A, absorb shocks or accelerate product investment, and makes performance more sensitive to interest and FX movements over the next 2–6 months.
Execution & Recognition Risk From Platform ConsolidationThe GBP 87m impairment and platform convergence highlight legacy complexity and execution risk. Consolidation costs, hiring constraints in fast-growing Virtual Learning, and variable enterprise revenue recognition can delay expected efficiency or backlog realization, pressuring medium-term growth and reported results.

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 $17.90 in the past 12 months.
    What is Pearson PLC’s market cap?
    Pearson PLC’s market cap is $8.10B.
      When is Pearson PLC’s upcoming earnings report date?
      Pearson PLC’s upcoming earnings report date is Aug 03, 2026 which is in 153 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 $0.089 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 0.34.
                How many shares outstanding does Pearson PLC have?
                Pearson PLC has 630,553,500 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 -0.922%.
                    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 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.

                      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

                      0.30%0.30%99.14%
                      Insiders
                      0.30% Other Institutional Investors
                      99.14% Public Companies and
                      Individual Investors
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