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

185 Followers

PSO Stock Chart & Stats

$16.29
$0.25(1.56%)
At close: 4:00 PM EDT
$16.29
$0.25(1.56%)

Bulls Say, Bears Say

Bulls Say
Free Cash Flow ConversionVery strong free cash flow conversion (≈96% of net income in 2025) is a durable strength. High FCF supports reinvestment in digital products, consistent dividends, and buybacks while providing a buffer versus cyclical revenue softness, enhancing long‑term financial resilience.
Virtual Learning Momentum & ContractsSustained double‑digit growth in Virtual Learning, contract renewals and accelerating enrollments indicate durable structural adoption of digital schooling. Long‑term contracts and higher segment margins (~18%) underpin recurring revenue and strengthen Pearson's transition to platform/subscription economics.
Product Innovation And AI TractionEarly AI certification uptake and adaptive product results (higher mastery rates) point to sustainable product differentiation. If scaled, AI offerings can deepen enterprise/professional relationships, boost high‑margin assessment and skills revenue, and create stickier, higher‑value customer propositions.
Bears Say
Multi‑year Revenue DeclinesA three‑year top‑line decline signals structural demand or market share challenges in parts of the business. Persistent revenue weakness forces reliance on margin expansion, one‑offs and capital returns to sustain EPS growth, increasing execution risk for durable growth targets.
Rising Net Debt And LeverageNet debt rising to ~£1.3bn after buybacks and M&A reduces financial flexibility. Higher leverage limits capacity for organic investment or opportunistic M&A if growth stalls, and increases exposure if cash generation weakens, making balance‑sheet direction a medium‑term watch item.
Assessment Delivery, Margin & Contract RisksOperational delivery failures (UK SATs) and contract losses have caused one‑off costs and margin pressure in Assessment & Qualifications. As a core, stable revenue stream, execution or contract‑win volatility poses lasting risks to cash flow predictability and reputational leverage with large public clients.

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 $17.75 in the past 12 months.
    What is Pearson PLC’s market cap?
    Pearson PLC’s market cap is $10.14B.
      When is Pearson PLC’s upcoming earnings report date?
      Pearson PLC’s upcoming earnings report date is Feb 26, 2027 which is in 204 days.
        How were Pearson PLC’s earnings last quarter?
        Pearson PLC released its earnings results on Jul 31, 2026. The company reported $0.389 earnings per share for the quarter, beating the consensus estimate of $0.357 by $0.032.
          Is Pearson PLC overvalued?
          According to Wall Street analysts Pearson PLC’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Pearson PLC pay dividends?
            Pearson PLC pays a Semiannually dividend of $0.11 which represents an annual dividend yield of 2.02%. See more information on Pearson PLC dividends here
              What is Pearson PLC’s EPS estimate?
              Pearson PLC’s EPS estimate is 0.57.
                How many shares outstanding does Pearson PLC have?
                Pearson PLC has 598,496,030 shares outstanding.
                  What happened to Pearson PLC’s price movement after its last earnings report?
                  Pearson PLC reported an EPS of $0.389 in its last earnings report, beating expectations of $0.357. Following the earnings report the stock price went down -2.7%.
                    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

                      Q2 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call presented a broadly positive operational and financial picture: group revenue, profit, EPS and free cash flow showed clear improvement, Virtual Learning and Enterprise businesses are delivering strong growth, and management reiterated full-year guidance and medium-term margin targets. Key strategic developments—AI certification contract, product innovation and digital/operational simplification—support growth prospects. Offsetting these positives are headwinds in English Language Learning, delivery issues in the U.K. SATs cycle that incurred one-time costs, some margin pressure in Assessment & Qualifications due to contract mix, and increased net debt partly driven by buybacks and acquisitions. On balance, the positive financial performance, cash generation and strategic momentum outweigh the challenges.View all PSO earnings summaries

                      PSO Stock 12 Month Forecast

                      Average Price Target

                      $17.40
                      ▲(6.81% Upside)
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