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Pearson Plc (PSO)
NYSE:PSO
Earnings Data
Report Date
Aug 03, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.34Last Year’s EPS
0.32Same Quarter Last Year
Based on 1 Analysts Ratings
Earnings Call Summary
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.Company Guidance
Overall Financial Performance
Underlying sales grew 4% in FY2025; underlying adjusted operating profit increased 6% to GBP 614 million; adjusted operating margin expanded from 16.9% to 17.2%; adjusted EPS rose 4% to 64.5p (9% at constant FX).
Strong Cash Generation and Capital Returns
Free cash flow conversion was 125% including a state aid recovery (98% excluding it); free cash flow increased 8% year-on-year; operating cash conversion 93%; net debt GBP 1.1 billion (leverage 1.3x) and the company commenced a further GBP 350 million share buyback while returning GBP 1.4 billion to shareholders since 2020.
Margin Expansion and Cost Savings
Pearson generated ~200 basis points of margin improvement in 2025 through cost savings and operational efficiencies; medium-term target reiterated of ~40 basis points margin improvement per year on average.
AI, Product Innovation and Technology Investment
Broad embedding of AI across products and operations: content editing time reduced by at least 40%; translation costs cut by ~33%; content alignment costs down ~25%; AI agents handled >130,000 interactions delivering ~40% reduction in volumes where deployed; technology and product spend approximately GBP 1 billion in the year.
Commercial Momentum and Enterprise Partnerships
Signed multiple large strategic enterprise partnerships with major tech and services companies (e.g., Google, Microsoft, Amazon, IBM, Deloitte, Salesforce, HCLTech) that collectively lock in 'hundreds of millions' of revenues and incremental cumulative revenue commitments extending to 2030; enterprise backlog described as growing to 'hundreds of millions' of incremental sales to 2030.
Business Unit Strengths and KPIs
Virtual Learning sales up 18% (H2), fall enrollments up 13% and Virtual Learning margin increased to 16%; Assessments & Qualifications delivered 4% growth and maintained a 23% margin; Enterprise Learning & Skills grew 6% with Enterprise Solutions up 20% in Q4; English Language Learning grew and PTE maintained revenue despite a ~15% decline in global PTE volumes. Power metrics: renewal rate 96%; average annual new contract value in core large-scale assessment businesses GBP 33 million; number of major customers extended to 49.
PSO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PSO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 27, 2026 | $12.79 | $12.67 | -0.92% |
Aug 01, 2025 | $13.87 | $14.60 | +5.20% |
Feb 28, 2025 | $16.21 | $16.59 | +2.37% |
Jul 29, 2024 | $12.83 | $12.75 | -0.60% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Pearson Plc (PSO) report earnings?
Pearson Plc (PSO) is schdueled to report earning on Aug 03, 2026, TBA (Confirmed).
What is Pearson Plc (PSO) earnings time?
Pearson Plc (PSO) earnings time is at Aug 03, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PSO EPS forecast?
PSO EPS forecast for the fiscal quarter 2026 (Q2) is 0.34.