Pearson Share News (PSON)

(Alliance News) - Pearson PLC on Friday said it is on track to deliver its 2026 guidance as it reported higher underlying sales in the first quarter.

The London-based education materials publisher said underlying group sales rose 4% in the first quarter, with all business units performing in line with expectations.

Virtual Learning was the standout performer, with underlying sales up 21%. Assessment & Qualifications sales fell 1%, but Pearson said this was as expected and it expects the division to return to growth from the second quarter.

The company reaffirmed its 2026 guidance, targeting mid-single-digit underlying sales growth and adjusted operating profit between GBP640 million and GBP685 million, based on exchange rates at the end of 2025.

Pearson reported adjusted operating profit of GBP614 million in 2025 on GBP3.58 billion in sales.

For 2026, it also expects its free cash flow conversion rate at between 90% and 100%, compared to 125% in 2025.

Pearson said its medium-term outlook remains unchanged, with a target for mid-single-digit compound annual growth in underlying sales, sustained margin improvement and strong cash conversion.

"We have had an encouraging start to the year, with a good performance in line with our expectations and continued progress against our strategy. We are executing with discipline, advancing our core business and enterprise offerings, while applying innovative technologies to enhance learner experiences," said Chief Executive Omar Abbosh.

"We remain confident in the momentum we are seeing for 2026 and in our ability to deliver attractive growth for our shareholders."

Shares in Pearson were up 5.3% at 1,139.00 pence on Friday morning in London.

By Michael Hennessey, Alliance News reporter

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