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Pearson plc

Pearson plc

NYSE•PSO
CEO: Ms. Sally Kate Miranda Johnson
Sector: Communication Services
Industry: Publishing
Listing Date: 1996-11-18
Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. 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 Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.
Contact Information
80 Strand, London, WC2R 0RL, United Kingdom
44-20-7010-2000
www.pearsonplc.com
Market Cap
$9.25B
P/E (TTM)
15.7
27.1
Dividend Yield
2.3%
52W High
$17.90
52W Low
$12.85
52W Range
22%
Rank42Top 35.8%
4.3
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Average • 4.3 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2015-2024

Financial Dashboard

Q2 2025 Data

Revenue

$2.24B-1.82%
4-Quarter Trend

EPS

$0.33+8.70%
4-Quarter Trend

FCF

$231.49M+212.28%
4-Quarter Trend

2024 Annual Earnings Highlights

Key Highlights

Strong Profit Growth Adjusted operating profit reached £600M, showing 10% underlying increase; margin expanded to 16.9% from 15.6%.
Excellent Cash Performance Free cash flow conversion hit 117%, a 26% year-on-year increase; strong cash underpins £500M share buyback.
Core Business Sales Growth Underlying sales grew 3%, excluding portfolio changes; Assessment & Qualifications sales up 3% underlying.
Shareholder Returns Confirmed Board recommends 6% final dividend increase for 24.0p total; total shareholder return reached 36% for the year.

Risk Factors

Competitive Marketplace Pressures Tighter migration policies impact PTE market size; sales declines noted in Higher Education International business.
Capability Risk Increased Risk increased to moderate-high due to execution needs in new markets like enterprise sales and IT resilience.
AI Intellectual Property Risks Risk remains moderate-high regarding IP protection and content differentiation due to rapid generative AI adoption.
Economic Headwinds Persist High global inflation and recession risks pressure school and consumer budgets, potentially reducing demand.

Outlook

2025 Financial Guidance Set Expect Group underlying sales growth and adjusted operating profit in line with current market expectations for 2025.
Enterprise Growth Focus Enterprise Learning and Skills sales expected to grow high single digit with new contract wins secured.
AI Innovation Continues Scaling AI-enhanced offerings in Higher Education and developing new tools across all business units in 2025.
Strong Cash Flow Guidance Expect free cash flow conversion of 90-100% plus anticipated £0.1B State Aid repayment in 2025.

Peer Comparison

Revenue (TTM)

KT CorporationKT
$19.90B
+5.7%
SK Telecom Co., Ltd.SKM
$12.34B
-3.4%
The Interpublic Group of Companies, Inc.IPG
$10.21B
-6.0%

Gross Margin (Latest Quarter)

Millicom International Cellular S.A.TIGO
77.0%
+22.1pp
KT CorporationKT
71.1%
+7.1pp
Frontier Communications Parent, Inc.FYBR
64.7%
+0.8pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
NYT$11.03B34.616.9%0.0%
TIMB$10.43B14.015.9%28.5%
FYBR$9.52B-25.0-7.9%55.8%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
-0.2%
Flat Growth
4Q Net Income CAGR
-3.9%
Stable Profitability
Cash Flow Stability
100%
Strong Cash Flow

Research & Insights

Next earnings:Feb 26, 2026
|
EPS:-
|
Revenue:-
Reports
All Years

  • Form 20-F - FY 2024

    Period End: Dec 31, 2024|Filed: Mar 14, 2025|
    Revenue: $4.54B-3.3%
    |
    EPS: $0.81+18.9%
    Beat

  • Form 20-F - FY 2023

    Period End: Dec 31, 2023|Filed: Mar 14, 2024|
    Revenue: $4.57B-4.3%
    |
    EPS: $0.66+60.6%
    Beat

  • Form 20-F - FY 2022

    Period End: Dec 31, 2022|Filed: Mar 31, 2023|
    Revenue: $4.73B+12.0%
    |
    EPS: $0.41+43.5%
    Miss

  • Form 20-F - FY 2021

    Period End: Dec 31, 2021|Filed: Mar 30, 2022|
    Revenue: $4.71B+0.9%
    |
    EPS: $0.32-43.9%
    Miss

  • Form 20-F - FY 2020

    Period End: Dec 31, 2020|Filed: Apr 1, 2021|
    Revenue: $4.36B-12.2%
    |
    EPS: $0.53+20.6%
    Beat