Pearson, PLC PSO

16.13 0.11 0.69% as of 25 Sep
Market cap
$9.6B
P/E
16.6×
Growth Flags show if company had growth for consecutive years

Insider Decisions

in millions of $
Nov 25 Feb 26 May 26 Aug 26
Buy — — — — — — — — — — — —
Sell — — — — — — — — — — — —
Insider Ownership 16.10%

Capital & Financial Ratios

Market Cap 9,600.00
Revenue 9,480.52
Net Income 1,820.67
Free Cash Flow 2,014.77
Net Debt 1,897.73
Current Ratio 2.00
Debt/Equity 0.52
P/E ratio 16.59
P/S ratio 0.00
P/B ratio 0.00
Past 5Y EPS Growth 13.71%
This Y EPS Growth 11.50%
Next Y EPS Growth 11.47%
Next 5Y EPS Growth 11.38%
in millions of $

Dividends

Payout Ratio 0.54
Annual Dividend Rate 0.28
Annual Dividend Yield 2.43%
total individual payouts
2023 0.19
0.19
2022 0.25
0.17
0.08
2021 0.27
0.19
0.09
2020 0.24
0.17
0.08
2019 0.24
0.17
0.07
2018 0.88
0.16
0.72
2017 0.50
0.44
0.07
2016 0.73
0.49
0.24
predictions in italic, special payouts not included in total or ratios

Assets vs Liabilities

2023 2024 2025 Q'26
Cash 408 734 442 460
Receivables 1,325 1,448 1,447 1,380
Inventory 113 95 87 97
Other 1,178 1,210 1,084 1,122
3,026 3,486 3,059 3,059
2023 2024 2025 Q'26
Payables 1,586 1,347 1,375 1,378
ST’ Debt 83 403 82 94
Other 37 98 12 12
1,746 1,889 1,531 1,529
in millions of $

Compound Annual Growth

10y 5y 3y
Sales (3.64%) 1.58% (0.24%)
Cash Flow 10.37% 11.61% 24.66%
Earnings (9.94%) 2.11% 13.85%
Book Value (6.84%) (1.87%) (4.01%)

Revenue

Mar Jun Sep Dec Year
’26 — — — — —
’25 — — — — 4,717
’24 — — — — 4,539
’23 — — — — 4,570
’22 — — — — 4,751
’21 — — — — 4,714
’20 — — — — 4,362
in millions of $ · fiscal quarters ending in the months shown

Operating Cash Flow

Mar Jun Sep Dec Year
’26 — 459 — — —
’25 — 256 — 865 865
’24 — 95 — 801 801
’23 — 16 — 653 653
’22 — (41) — 447 447
’21 — (105) — 448 448
’20 — (177) — 499 499
in millions of $ · fiscal quarters ending in the months shown

Free Cash Flow

Mar Jun Sep Dec Year
’26 — 349 — — —
’25 — 178 — 831 692
’24 — 29 — 767 650
’23 — (61) — 622 503
’22 — (108) — 393 282
’21 — (203) — 360 206
’20 — (215) — 431 327
in millions of $ · fiscal quarters ending in the months shown

EPS

Mar Jun Sep Dec Year
’26 — — — — —
’25 — — — — 0.67
’24 — — — — 0.81
’23 — — — — 0.66
’22 — — — — 0.40
’21 — — — — 0.29
’20 — — — — 0.53
fiscal quarters ending in the months shown

Target Price Range

Analyst price targets

Recommendation Rating

3.1
1Buy 2 3Hold 4 5Sell
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
8.99 7.04 8.94 7.92 5.08 7.68 8.05 9.29 11.69 12.85

Analyst estimates 2026–2028

Powerpack
Low Price
13.20 10.13 12.73 13.19 9.48 12.39 12.03 12.41 16.30 17.90
High Price
32,719 30,339 24,322 22,734 20,000 20,744 20,438 18,360 17,116 16,665
Employees
0 0 0 0 0 0 0 0 0 0
Revenue/Emp
6,169 5,816 5,511 4,940 4,362 4,714 4,751 4,570 4,539 4,717
Revenue
54.02% 54.22% 52.94% 51.98% 47.98% 49.04% 46.73% 49.95% 50.99% 52.00%
Gross Margin
(3,466) 543 665 296 455 216 400 613 652 603
EBT
(56.17%) 9.33% 12.06% 6.00% 10.42% 4.58% 8.41% 13.42% 14.36% 12.78%
EBT Margin
(3,165) 526 788 340 398 220 400 613 652 603
Net Income
3,947 403 338 497 407 561 390 322 300 273
Depreciation
7.57 7.15 7.08 6.36 5.77 6.25 6.44 6.42 6.74 7.24
Revenue/Sh
(3.57) 0.64 1.01 0.43 0.53 0.29 0.41 0.66 0.82 0.68
Earnings/Sh
0.68 0.47 0.79 0.61 0.66 0.59 0.61 0.92 1.19 1.33
Cash Flow/Sh
(0.40) (0.37) (0.12) (0.32) (0.23) (0.32) (0.22) (0.21) (0.22) (0.27)
Capex/Sh
0.28 0.10 0.67 0.29 0.43 0.27 0.38 0.71 0.97 1.06
Free CF/Sh
7.23 6.37 7.76 7.10 7.03 7.80 7.40 6.97 7.70 7.42
Book Value/Sh
815 813 778 777 755 754 738 712 673 651
Shares
0.00 0.00 18.29 7.67 9.20 10.02 16.79 12.55 16.59 14.45
PE Ratio
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
PS Ratio
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
PB Ratio
0.00 0.00 0.00 0.00 0.07 0.07 0.09 0.11 0.12 0.16
EV/Sales
1.79 1.46 0.74 2.77 1.94 1.48 1.46 1.08 0.92 0.90
EV/FCF
556 384 617 471 499 448 447 653 801 865
Op' Cash Flow
(327) (299) (96) (245) (172) (242) (165) (151) (151) (173)
Capex
229 85 521 226 327 206 282 503 650 692
FCF
2,929 2,150 2,423 2,146 2,271 2,257 1,656 1,280 1,597 1,528
Working Cap'
3,345 1,398 961 2,125 2,120 1,925 1,521 1,444 1,881 1,953
Total Debt
1,354 720 202 1,535 688 634 811 1,036 1,148 1,511
Net Debt
5,893 5,182 6,040 5,520 5,308 5,885 5,461 4,961 5,179 4,830
Sh' Equity
(20.15%) 4.40% 7.58% 3.32% 4.12% 2.22% 3.13% 5.40% 6.46% 5.10%
ROA
(0.54%) 5.09% 6.80% 2.50% 5.43% 2.40% 3.33% 6.44% 6.80% 6.58%
ROIC
(40.33%) 9.45% 13.99% 5.83% 7.35% 3.91% 5.28% 9.02% 10.94% 8.83%
ROE
predictions in italic, sparklines do not include predictions

All 10 years →

Fiscal years to Dec 2025

Pearson, PLC (PSO) key facts

  • Pearson, PLC (PSO) is a Publishing company in the Communication Services sector, traded in the US as an ADR.
  • Pearson, PLC’s revenue for fiscal 2025 (year ended December 2025) was GBP 4.7 billion, up 3.92% from fiscal 2024.
  • Net income was GBP 602.6 million, or GBP 0.68 per share (basic), a net margin of 9.37%.
  • As of September 25, 2026, PSO traded at $16.13, a market capitalization of $9.6 billion.
  • At that price the stock trades at 16.6× trailing-twelve-month earnings.
  • Pearson, PLC pays an annual dividend of $0.28 per share, a yield of 2.43%, with a payout ratio of 53.5%.
  • Return on equity was 8.83% and debt-to-equity 0.52.

Source: company filings (standardised) and stockrow calculations.

Pearson, PLC (PSO) Latest News

News by impact score

Fine-tune

24 Sep

3

Pearson launched the study For Every Future at WorldSkills International Conference 2026 in Shanghai, warning that AI is reshaping skilled trades faster than education and training can adapt. Early-career workers lack job-specific AI literacy, judgment, and hands-on know-how, while many experienced professionals retire with tacit knowledge, creating a 'triple capability gap' across skilled trades, technical, and service roles. Employers will need workers who combine AI literacy and critical judgment, durable human skills (communication, collaboration, adaptability, emotional intelligence), and hands-on expertise passed from mentors. If unaddressed, safety standards, service continuity, and growth could suffer as demand rises and retirements remove experience. The study cites UK pharmacy technician education updates taking 2-3 years and concerns among industrial machinery mechanics about AI-enabled work, underscoring the need to reform education, training, and workplace learning to close the gap. Positions Pearson as a leader in AI-enabled workforce training, potentially boosting demand for its education and assessment solutions.

22 Sep

4

Pearson is exploring a platform to verify and credential AI agents, assessing whether systems are ready, safe, and fit for business use, CTO Dave Treat told Investing.com. The effort extends Pearson's assessment heritage from testing people to evaluating AI, coming after its acquisition of ITS to strengthen verification capabilities. Treat argues AI is a significant tailwind, with demand for trusted skills validation rising as the labor market reshapes. About 90% of Pearson's profits come from complex physical and digital workflows and print, with the remainder from digital courseware. AI tooling is cutting internal costs in authoring, translation, and support, while Pearson has secured multi-year agreements underpinning revenue through 2030. The company is also pursuing ambient assessment—continuous mastery demonstrated during the learning experience rather than a single high-stakes moment. AI credentialing platform and acquisition deepen Pearson’s AI-enabled services, potentially boosting growth and margin through new revenue streams and efficiency gains.

18 Sep

4

Pearson acquires ITS to pursue verified skills in the AI era. Acquisition of ITS marks a major strategic move into AI-era verified skills that can shift Pearson's competitive position.

4

Pearson, PLC acquires assessment technology provider ITS. Acquisition of ITS strengthens Pearson's assessment technology capabilities and competitive positioning.

8 Sep

3

Pearson PLC (PSO) stock rating upgraded to Buy. Buy rating upgrade signals improved outlook for Pearson market performance.

31 Jul

3 transcript

Pearson PLC reported H1 results with revenue growth in key segments, adjusted earnings per share of 18.5p, and reaffirmed full-year guidance amid ongoing digital transformation efforts. H1 earnings and reaffirmed guidance offer moderate insight into financial trajectory without signaling major strategic shifts.

3

Pearson, PLC released unaudited interim results for the six months to 30 June 2026. Interim results deliver updated financial metrics that may shift near-term investor sentiment without altering long-term strategy.

24 Jul

3

Pearson (LSE:PSON) stock receives a fair value increase from analysts evaluating company execution capabilities and growth potential. Analyst fair value revisions may moderately affect Pearson's stock performance and market perception.

30 Jun

3

Pearson and AWS release research showing U.S. built AI economy and identifying graduate preparation for AI jobs as next key opportunity. Pearson-AWS research partnership supports edtech positioning in AI skills training without immediate financial or operational shifts.

18 Jun

3

Cognizant and Pearson study reveals 94% of HR leaders expect AI to create new entry-level roles, affirming the ongoing necessity of such positions amid workforce evolution. Pearson’s involvement in the AI and jobs study supports its positioning in education and skills development, yielding moderate positive effects on market perception.

5 Jun

3

Pearson, PLC promotes Risepoint contracting model that centers student success within its education services and partnerships. Risepoint model may improve Pearson's service delivery and competitive stance in education sector without major financial shifts.

28 May

4

Pearson launches AI modules to address the AI readiness gap between higher education and work. AI module launch represents major product initiative in education technology that can shift Pearson's competitive positioning.

12 May

4

Pearson and Salesforce expand partnership to accelerate workforce AI readiness. Partnership expansion with Salesforce bolsters Pearson's position in AI-enhanced education and workforce training.

5 May

3

Pearson's new data shows students build proficiency with AI-powered practice tools. Data validating AI-powered practice efficacy enhances Pearson's edtech innovation and competitive edge without fundamentally transforming operations.

2 May

3

Pearson PLC (PSO) released Q1 earnings call highlights, detailing financial results, sales growth, cost savings, and reaffirmed full-year guidance amid digital transformation efforts. Q1 earnings highlights moderately influence financial performance and investor sentiment without fundamentally altering long-term trajectory.

1 May

3

Pearson PLC released its unaudited Q1 2026 trading update, detailing early-year performance amid ongoing strategic shifts in education and assessment segments. Q1 2026 trading update highlights financial performance and operational metrics with moderately noticeable effects on investor sentiment and short-term trajectory.

22 Apr

3

Employers increasingly use IT certifications to address high-risk skills gaps and achieve competitive advantages, according to a Pearson study. Pearson's study demonstrates demand for its IT certifications to fill critical skills shortages, moderately enhancing its competitive position in education and assessment.

3

Continual Engine aids publishers including Pearson PLC (PSO) in transitioning to scalable accessibility infrastructure to comply with upcoming ADA Title II requirements. Proactive accessibility upgrades support Pearson's compliance and edtech operations amid regulatory pressures, with moderate effects on performance.

20 Apr

3

Pearson (PSO) upgraded to Buy rating by analysts, signaling improved outlook and potential stock upside amid positive developments in education sector. Analyst upgrade to Buy expected to moderately boost investor sentiment and short-term stock performance without altering core operations.

13 Apr

4

Pearson and AWS global research reveals 53% of employers struggle to find AI-ready graduates, highlighting a critical skills gap in the workforce. Pearson-AWS research underscores AI talent shortage, positioning Pearson as a key player in bridging the edtech skills gap.

9 Apr

3

Pearson (LSE:PSON)'s investment story is shifting as analyst views converge. Converging analyst views indicate a moderate shift in Pearson's investment narrative, potentially influencing market sentiment and financial outlook.

25 Mar

3

Analysts are reworking price targets and growth assumptions for Pearson (LSE:PSON), shifting the company's investment narrative. Analyst revisions to targets and growth assumptions moderately influence Pearson's investor sentiment and market performance.

18 Mar

4

TCS and Pearson partner to accelerate AI-powered learning solutions for global industries, leveraging TCS's AI expertise and Pearson's educational content to deliver personalized, scalable learning experiences. Strategic AI partnership with TCS positions Pearson for major advancements in edtech innovation and competitive positioning.

17 Mar

3

Rothschild banking dynasty sells its stake in The Economist Group, where Pearson holds a 47% minority interest, potentially prompting Pearson to reassess its position in the publication. Shift in controlling ownership of The Economist Group affects Pearson's 47% stake value, dividends, and strategic options amid its business transformation.

11 Mar

3

Pearson's investment story is shifting as valuations and growth assumptions evolve, prompting reassessment of its future prospects. Evolving valuations and growth assumptions moderately influence Pearson's financial performance and investor sentiment.

1 Mar

4

Pearson plc (PSO) announces preliminary Fiscal 2025 results. Preliminary fiscal results disclosure provides critical early financial data that can significantly sway investor sentiment and stock trajectory.

28 Feb

4

Pearson PLC released H2 earnings call highlights, covering financial performance, strategic updates, and outlook for the education publisher. H2 earnings highlights disclose key financial metrics, growth strategies, and forward guidance that drive significant shifts in Pearson's market valuation and investor confidence.

27 Feb

4

Pearson PLC released unaudited preliminary results for 2025, highlighting financial performance across its education and assessment segments amid strategic digital transformations. Preliminary annual results reveal core financial health and strategic progress, significantly influencing investor sentiment and stock trajectory.

25 Feb

4

New data reveals Pearson's AI study tools transform passive reading into active learning for college students, enhancing engagement and outcomes. Positive empirical validation of AI tools strengthens Pearson's edtech innovation and market positioning.

2 Feb

3

Cognizant is set to report its Q4 earnings, with analysts anticipating insights into the company's performance and future outlook. Investors are keen to understand how Cognizant's results may influence market sentiment and its competitive positioning within the tech sector. The earnings report is expected to provide critical information regarding revenue growth, profitability, and strategic initiatives that could impact stock performance. Earnings reports typically influence market sentiment and can moderately affect stock performance and competitive positioning.

stockrow.com/PSO · Data as of Dec 31, 2025 · For information only; not investment advice. · © 2026 stockrow.com