Pearson posts higher profit in FY25, guides for further growth in FY26

(Sharecast News) - Education and assessment provider Pearson said on Friday that it had delivered on its goals in 2025, with both underlying sales and adjusted operating profit growth, leaving the firm confident in its outlook for 2026.

Pearson said underlying sales rose 4% for the year to £3.57bn, while adjusted operating profits increased 6% to £614m, lifting its operating margin from 16.9% to 17.2%. Operating cash conversion remained strong at 93%, supported by high fourth‑quarter sales, and free cash flow rose 8%, giving a 125% free‑cash‑flow conversion rate.

Adjusted earnings per share of 64.5p were up 9% at constant exchange rates and 4% on a headline basis, while Pearson's full‑year dividend was lifted 5% to 25.2p.

The FTSE 100-listed group said it had made solid strategic progress against its 2025 priorities as it continued to scale the use of AI across its products, aiming to improve learner outcomes and reduce educator workloads, while embedding AI as a core capability across the business.

Pearson also said it had advanced its enterprise strategy, securing eight partnerships with major firms and announcing a new strategic partnership with Salesforce.

Looking ahead, Pearson issued a positive outlook for 2026, guiding to mid‑single‑digit underlying sales growth, adjusted operating profits of £640m-£685m at year‑end 2025 FX rates, and free‑cash‑flow conversion of 90%-100%.

Pearson added that its £350m share buyback was "well underway".

Reporting by Iain Gilbert at Sharecast.com

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