PSO · Pearson plc

Pearson's Q1 2026 trading update shows continued execution with underlying group sales up 4%, in line with expectations. The standout performer was Virtual Learning, with sales up 21% driven by strong enrolment momentum (enrolment growth increasing to 15%) and favourable mix. Assessment & Qualifications declined 1% as expected, impacted by the loss of the New Jersey contract, but new wins like Wyoming and growth in Professional Assessments and Clinical Assessment provide offsets. Higher Education grew 2% on solid US Courseware performance, with Inclusive Access up 19% and digital subscriptions up 2%. English Language Learning grew 2% driven by Institutional, while PTE declined slightly. Enterprise Learning & Skills grew 8% on Vocational Qualifications and Enterprise Solutions, including monetisation of the Salesforce partnership. Management reaffirmed full-year guidance for mid-single digit underlying sales growth and adjusted operating profit of £640m-£685m. The £350m share buyback is progressing well, with £219m repurchased. In April 2026, Pearson issued a £350m 10-year bond, strengthening its liquidity position. The company remains confident in its strategy and medium-term outlook of mid-single digit CAGR, margin improvement of 40bps per annum, and strong free cash conversion of 90-100%.