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Pearson, PLC

PSO Communication Services Publishing

Pearson, PLC’s revenue for fiscal 2025 (year ended December 2025) was $4.7 billion, up 3.92% from fiscal 2024. Operating cash flow growth for three consecutive years.

18.24 0.38 +2.13%
Market cap
$10.7B
P/E
18.8×
Fwd P/E
—
Dividend yield
—
F-score
7/9
Altman Z
2.65
Beneish M
−2.73
Dividend safety
57/100
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

Insider Decisions trades per month

Dec 25 Mar 26 Jun 26 Sep 26
Buy — — — — — — — — — — — —
Sell — — — — — — — — — — — —
Insider Ownership 16.10%

Capital & Financial Ratios $m

Market Cap 10,700.00
Revenue 9,480.52
Net Income 1,820.67
Free Cash Flow 2,014.77
Net Debt 1,897.73
Current Ratio 2.00 (at or above 1.5: strong)
Debt/Equity 0.52
P/E ratio 18.78
Fwd P/E —
P/S ratio 0.00
P/B ratio 0.00
Past 5Y EPS Growth 4.80%
This Y EPS Growth 10.55%
Next Y EPS Growth 11.49%
Next Y revenue growth —
Next 5Y EPS Growth 11.06%

Green and red mark values outside typical ranges. How we judge →

Valuation vs history

EV/Sales, ten years
EV/Sales is 0.2×, against a ten-year median of 0.1×; over the ten years it ranged from 0.1× in 2021 to 0.2× in 2026.
P/E against its own 10 years 99.68%
10-year low 10-year high
EV/Sales against its own 10 years 100.00%
10-year low 10-year high
EV/FCF against its own 10 years 17.29%
10-year low 10-year high

Dividends

Payout Ratio —
Annual Dividend Rate —
Annual Dividend Yield —
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
special payouts not included in total or ratios

Assets vs Liabilities $m

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

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 $m

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

Operating Cash Flow $m

Mar Jun Sep Dec Year
’26 — — — — —
’25 — — — — 865
’24 — — — — 801
’23 — — — — 653
’22 — — — — 447
’21 — — — — 448
’20 — — — — 499
Fiscal quarters ending in the months shown.

Free Cash Flow $m

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
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

3.3
1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Trend 2026e 2027e 2028e
Price, $
Price, $ Low 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
High 13.20 10.13 12.73 13.19 9.48 12.39 12.03 12.41 16.30 17.90
People
People Employees 32,719 30,339 24,322 22,734 20,000 20,744 20,438 18,360 17,116 16,665
Revenue/emp, $m 0.19 0.19 0.23 0.22 0.22 0.23 0.23 0.25 0.27 0.28
Income, $m
Income, $m Revenue 6,169 5,816 5,511 4,940 4,362 4,714 4,751 4,570 4,539 4,717
Gross margin, % 54.02 54.22 52.94 51.98 47.98 49.04 46.73 49.95 50.99 52.00
EBT (3,466) 543 665 296 455 216 400 613 652 603
EBT margin, % (56.17) 9.33 12.06 6.00 10.42 4.58 8.41 13.42 14.36 12.78
Net income (3,165) 526 788 340 398 220 400 613 652 603
Depreciation 3,947 403 338 497 407 561 390 322 300 273
Per share, $
Per share, $ Revenue 7.57 7.15 7.08 6.36 5.77 6.25 6.44 6.42 6.74 7.24
Earnings (3.57) 0.64 1.01 0.43 0.53 0.29 0.41 0.66 0.82 0.68
Cash flow 0.68 0.47 0.79 0.61 0.66 0.59 0.61 0.92 1.19 1.33
Capex (0.40) (0.37) (0.12) (0.32) (0.23) (0.32) (0.22) (0.21) (0.22) (0.27)
Free cash flow 0.28 0.10 0.67 0.29 0.43 0.27 0.38 0.71 0.97 1.06
Book value 7.23 6.37 7.76 7.10 7.03 7.80 7.40 6.97 7.70 7.42
Shares, m 815 813 778 777 755 754 738 712 673 651
Valuation, ×
Valuation, × P/E 0.00 0.00 18.29 7.67 9.20 10.02 16.79 12.55 16.59 14.45
P/S 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
P/B 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EV/Sales 0.00 0.00 0.00 0.00 0.07 0.07 0.09 0.11 0.12 0.16
EV/FCF 1.79 1.46 0.74 2.77 1.94 1.48 1.46 1.08 0.92 0.90
Cash, $m
Cash, $m Operating cash flow 556 384 617 471 499 448 447 653 801 865
Capex (327) (299) (96) (245) (172) (242) (165) (151) (151) (173)
Free cash flow 229 85 521 226 327 206 282 503 650 692
Balance, $m
Balance, $m Working capital 2,929 2,150 2,423 2,146 2,271 2,257 1,656 1,280 1,597 1,528
Total debt 3,345 1,398 961 2,125 2,120 1,925 1,521 1,444 1,881 1,953
Net debt 1,354 720 202 1,535 688 634 811 1,036 1,148 1,511
Shareholders’ equity 5,893 5,182 6,040 5,520 5,308 5,885 5,461 4,961 5,179 4,830
Returns, %
Returns, % ROA (20.15) 4.40 7.58 3.32 4.12 2.22 3.13 5.40 6.46 5.10
ROIC (0.54) 5.09 6.80 2.50 5.43 2.40 3.33 6.44 6.80 6.58
ROE (40.33) 9.45 13.99 5.83 7.35 3.91 5.28 9.02 10.94 8.83
Negative figures in brackets.

All 10 years →

Fiscal years to Dec 2025

Charts ten years each

Pearson, PLC vs peers in Publishing (Q) = latest quarter vs a year earlier

Company Market cap P/E Fwd P/E Revenue growth (Q) EPS growth (Q) FCF growth (Q) Gross margin (Q) EBIT margin (Q) Compare
NYT The New York Times Company $11.1B 28.0× 28.6× +11.17% (above 0%: growing) +13.73% (above 0%: growing) +78.27% (above 0%: growing) 51.76% 15.48% Compare
PSO Pearson, PLC $10.7B 18.8× — +7.23% (above 0%: growing) +1,083.81% (above 0%: growing) +1,102.06% (above 0%: growing) 48.91% 0.00%
WLY John Wiley & Sons, Inc. $2.7B 13.7× 11.2× −2.63% (below 0%: shrinking) n/m +30.28% (above 0%: growing) 73.89% 0.76% Compare
WLYB John Wiley & Sons, Inc. $2.1B 13.7× — −2.63% (below 0%: shrinking) n/m +30.28% (above 0%: growing) 73.89% 0.76% Compare
TDAY USA TODAY Co., Inc. $1.1B — (loss-making) 26.6× −8.30% (below 0%: shrinking) −88.89% (below 0%: shrinking) +1.14% (above 0%: growing) 38.83% 3.73% Compare
SCHL Scholastic Corporation $711.5M 24.9× 16.2× −3.90% (below 0%: shrinking) n/m −18.41% (below 0%: shrinking) 45.53% (42.53%) Compare
LEE Lee Enterprises, Incorporated $150.0M — (loss-making) — (loss-making) −10.85% (below 0%: shrinking) n/m −36.16% (below 0%: shrinking) 62.43% 6.85% Compare
EDUC Educational Development Corporation $9.3M 5.3× 10.4× −11.92% (below 0%: shrinking) n/m −61.99% (below 0%: shrinking) 59.73% (38.41%) Compare
TNMG TNL Mediagene $2.5M 13.1× — — +25.00% (above 0%: growing) −233.71% (below 0%: shrinking) — — Compare
Median of peers $880.8M 13.7× 16.2× −3.90% +13.73% −8.64% 59.73% 0.76%

All 9 Publishing stocks →

Pearson, PLC (PSO) key facts

  • Concern: Net income was $602.6 million, or $0.68 per share (basic), a net margin of 9.37%.
  • Strength: Pearson, PLC’s revenue for fiscal 2025 (year ended December 2025) was $4.7 billion, up 3.92% from fiscal 2024.
  • Pearson, PLC (PSO) is a Publishing company in the Communication Services sector, traded in the US as an ADR.
  • As of October 16, 2026, PSO traded at $18.24, a market capitalization of $10.7 billion.
  • At that price the stock trades at 18.8× trailing-twelve-month earnings; its P/E is higher than 100% of its own readings over the past ten years.
  • Return on equity was 8.83% and debt-to-equity 0.52.
  • Its Piotroski F-score is 7 out of 9 and its Altman Z-score is 2.65 (grey zone) for fiscal 2025.

Source: company filings (standardised) and stockrow calculations.

Pearson, PLC (PSO) Latest News

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