olivLaw · European equity research
Pearson plc PSON.L
United Kingdom · London Stock Exchange · ISIN GB0006776081 · Vertical: Listed companies from United Kingdom
Pearson plc is a global lifelong learning company that integrates content creation, digital distribution, assessment and credentialling in one value chain. In 2025 the company reported 4% underlying sales growth and continues to return capital to shareholders through buybacks, as AI reshapes how people learn.
At the close of 05 Nov 2026, Pearson plc (PSON.L) stock was 13.13 GBP (−0.30% on the day), with beta 0.13, 52-week range 8.92–13.75 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 53.9
- neutral
- Bollinger (20, 2)
- 12.65 – 13.95
- in the lower half of the band · %B 0.37 · band width 9.7%
- SMA 50 / 200
- 12.54 / 11.30
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.13 / 0.23
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +6.5% | −0.6% | +7.1 pp | — |
| 3 months | +6.8% | −4.2% | +11.0 pp | — |
| 6 months | +19.1% | +4.3% | +14.8 pp | — |
| Year to date | +25.0% | +7.5% | +17.5 pp | — |
| 1 year | +24.7% | +9.9% | +14.8 pp | +5.8% |
| 3 years | +37.6% | +49.8% | −12.2 pp | +26.3% |
| 5 years | +120.7% | +42.8% | +77.8 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | 3.8 bn | 3.7 bn | 3.6 bn | 3.6 bn |
| Revenue YoY | unavailable | −4.3% | −3.3% | +0.7% |
| Net income | 242.0 m | 378.0 m | 434.0 m | 335.0 m |
| Net income YoY | unavailable | +56.2% | +14.8% | −22.8% |
| Diluted EPS | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable |
| net % | 6.3% | 10.3% | 12.2% | 9.4% |
| Free cash flow | 304.0 m | 495.0 m | 594.0 m | 627.0 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 333.0 m GBP
- Financial debt
- 1.5 bn GBP
- Net debt
- 1.1 bn GBP
- Equity
- 3.7 bn GBP
- Total assets
- 6.5 bn GBP
- Debt / equity
- 0.40x
- Current ratio
- unavailable
- ROE
- 8.7%
- ROA
- 5.0%
- FCF margin
- 17.5%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Revenue | 3.8 bn | 3.7 bn | 3.6 bn | 3.6 bn | esef· 12 May 2026verified |
| Cost of revenue | 2.0 bn | 1.8 bn | 1.7 bn | 1.7 bn | esef· 12 May 2026verified |
| Gross profit | 1.8 bn | 1.8 bn | 1.8 bn | 1.9 bn | esef· 12 May 2026verified |
| Operating income | 271.0 m | 498.0 m | 541.0 m | 507.0 m | esef· 12 May 2026verified |
| Interest expense | 71.0 m | 81.0 m | 112.0 m | 98.0 m | esef· 12 May 2026verified |
| Pre-tax income | 323.0 m | 493.0 m | 510.0 m | 457.0 m | esef· 12 May 2026verified |
| Income tax | 79.0 m | 113.0 m | 75.0 m | 121.0 m | esef· 12 May 2026verified |
| Net income | 242.0 m | 378.0 m | 434.0 m | 335.0 m | esef· 12 May 2026verified |
Balance sheet · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Cash | — | 312.0 m | 543.0 m | 333.0 m | esef· 12 May 2026verified |
| Receivables | — | 1.1 bn | 1.0 bn | 1.1 bn | esef· 12 May 2026verified |
| Inventories | — | 91.0 m | 74.0 m | 66.0 m | esef· 12 May 2026verified |
| Property, plant & equipment, net | — | 217.0 m | 216.0 m | 210.0 m | esef· 12 May 2026verified |
| Total assets | — | 6.7 bn | 6.9 bn | 6.5 bn | esef· 12 May 2026verified |
| Accounts payable | — | 1.3 bn | 1.1 bn | 1.0 bn | esef· 12 May 2026verified |
| Short-term debt | — | 67.0 m | 315.0 m | 62.0 m | esef· 12 May 2026verified |
| Long-term debt | — | 1.1 bn | 1.2 bn | 1.4 bn | esef· 12 May 2026verified |
| Total liabilities | — | 2.7 bn | 2.8 bn | 2.8 bn | esef· 12 May 2026verified |
| Equity | 4.4 bn | 4.0 bn | 4.1 bn | 3.7 bn | esef· 12 May 2026verified |
Cash flow · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Operating cash flow | 361.0 m | 525.0 m | 627.0 m | 656.0 m | esef· 12 May 2026verified |
| Capex | 57.0 m | 30.0 m | 33.0 m | 29.0 m | esef· 12 May 2026verified |
| Free cash flow | 304.0 m ≈ | 495.0 m ≈ | 594.0 m ≈ | 627.0 m ≈ | esef· 12 May 2026derived |
| Investing cash flow | 13.0 m | -301.0 m | -131.0 m | -243.0 m | esef· 12 May 2026verified |
| Financing cash flow | -804.0 m | -450.0 m | -241.0 m | -609.0 m | esef· 12 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 37.5% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
38% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 37.5% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 7.6% | 25 (vs peers) | 28% |
| Net margin · Quality | 9.4% | 46 (vs peers) | 17% |
| FCF conversion · Quality | 187.2% | 100 (on a fixed band) | 17% |
| Revenue CAGR 3Y · Growth | -2.3% | 0 (on a fixed band) | 22% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 5.2x | 57 (on a fixed band) | 17% |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial57/100 · 1/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality51/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PEARSON PLC (PSON.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 3.6 bn GBP in 2025; YoY growth 0.7%; net margin 9.4%; ROE 8.7%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 37.5% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 187.2%
What contradicts it
- ROIC: 7.6%
- Revenue CAGR 3Y: -2.3%
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Net debt / EBITDA, Current ratio, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +5% / +113% |
1- and 3-year price returns: for PSON.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Pearson plc is a global lifelong learning company that integrates content creation, digital distribution, assessment and credentialling in one value chain. In 2025 the company reported 4% underlying sales growth 1 and continues to return capital to shareholders through buybacks, as AI reshapes how people learn.
SWOT
Strengths
- An integrated value chain spanning content, distribution, assessment and credentialling, together with a balance sheet that supports returning capital to shareholders 1.
- Independent recognition through strong sustainability scores and inclusion in specialised indices, according to the report 1.
- Experience deploying AI with major technology partners and a responsible AI governance framework 1.
Weaknesses
- Net debt remains significant and includes lease and borrowing obligations, which limit financial flexibility 1.
- Legacy technology platforms and technical debt require migration, with operational risks flagged by the Audit Committee 1.
- Exposure to UK defined benefit pension arrangements, although these are currently in surplus 1.
Opportunities
- Demand for continuous learning and AI skills, supported by the workplace changes described in the report 1.
- Portfolio expansion through acquisitions in technical and professional education, such as eDynamic Learning 1.
- Extending AI-based learning experiences to more customer segments, in line with the company’s plan 1.
Threats
- Growing sustainability reporting and compliance requirements, including EU rules, which could raise costs 1.
- Cyber security, data privacy and technology resilience risks, highlighted as priorities by the Audit Committee 1.
- Budget pressure on educational and institutional customers, which may delay purchasing decisions 1.
Risks
- Cyber security and data privacyhigh
The Audit Committee repeatedly reviewed cyber security and data privacy risks; an incident could damage the trust of learners and institutions 1.
- Technology modernisationmedium
Cloud migration and reduction of technical debt carry execution risk; delays or errors could affect critical customer journeys 1.
- Net debt and financingmedium
Net debt and revolving credit facilities could limit flexibility if financing conditions deteriorate 1.
- Regulation and sustainability reportinglow
Changing reporting requirements, including the EU ‘Omnibus’ package, could require costly process adjustments 1.
- Litigation and regulatory mattersmedium
The Audit Committee reviews quarterly reports on material litigation; outcomes could affect the financial position 1.
Investment thesis
What would need to be true (bull case)
- Underlying sales growth in 2025 combined with margin expansion and strong cash generation could support medium-term growth theses, according to the report 1.
- If demand for reskilling and AI skills rises, the company’s integrated portfolio could benefit directly 1.
- Dividend policy and repeated buyback programmes show capital allocation discipline, an argument for investors focused on total return 1.
What would break the thesis
What to watch
- Results of the £350m buyback programme launched in January 20262026
- Integration of eDynamic Learning and its contribution to underlying sales2026
- Development of net debt against the £1,069m level at end-2025next 10-K
- Progress of technology migration and cyber security measures2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Pearson describes itself as ‘the world’s lifelong learning company’, supporting learners, educators and institutions by integrating content creation, digital distribution, assessment and credentialling in a unified value chain 1. According to its 2025 annual report, the aim is to widen access to learning and improve learning outcomes for more people 1. The company seeks to create social impact and shareholder value through products built on learning science 1.
In 2025 Pearson acquired eDynamic Learning, a provider of Career and Technical Education curriculum solutions, for cash consideration of £168m 1. It also disposed of Copp Clark, recording a gain on disposal of £8m 1. These moves point to a portfolio tilt toward professional content and workforce solutions 1.
Capital allocation combines dividends and buybacks. The dividend for 2025 is covered 2.6 times by adjusted earnings, and the Board approved a further £350m buyback programme commencing 21 January 2026 1. Net debt at the end of 2025 stood at £1,069m 1.
Segments
Digital learning and higher education solutions
The Higher Education unit applied research findings to launch the ‘Go Deeper’ functionality in its AI Study Tools, which encourages critical reasoning skills 1. The report links this to continued growth in underlying sales across the group 1.
Virtual schools and workforce education
Connections Academy Virtual Schools integrated AI into resources for selected topics, which the report says increased end-of-year pass rates and final grades 1. The eDynamic Learning acquisition extends the portfolio into technical and professional education 1.
Market context
The report frames the market around rapid workplace change and shortening skill lifespans, which require more agile learning and development 1. Pearson’s 2025 research report ‘Lost in Transition’ sets out the economic and personal costs of lacking effective learning 1. The company was featured on the GSV 150 list of firms transforming digital learning 1.
Demand for reskilling and AI skills is a potential growth area, but according to the report, results depend on proving clear benefits for learners and institutions 1. Budget pressure in education could influence purchasing decisions, a factor implicit in the growth strategy 1.
Trends
- Artificial intelligence in learningmixed
The company is investing in AI tools for conceptual learning and has trained employees in every role, but the report notes that AI-related emissions will become a larger share of its footprint as AI learning experiences expand 1. The impact depends on customer adoption of these products 1.
- Reskilling and changing skill lifespanstailwind
Shifts in the world of work and shorter skill lifespans support demand for continuous learning solutions, which sit at the centre of the company’s strategy 1.
- Sustainability reporting and compliance costsheadwind
Mandatory sustainability reporting and preparation for the EU ‘Omnibus’ simplification package add compliance work, which the Audit Committee has monitored 1.
- Technology modernisation and resiliencemixed
Cloud migration, reduction of technical debt and risks from legacy platforms are priorities of the technology transformation; according to the report, they could affect results if not managed with discipline 1.
Competitive position
The annual report does not explicitly name competitors, so comparative positions cannot be drawn from this source 1. The digital learning market includes content providers, assessment platforms and professional training firms that could compete for the same customer segments 1.
The company’s stated advantage lies in integrating the value chain from content to credentials, and in technology partnerships with cloud and AI providers 1. If this advantage holds, it could support its position against more specialised rivals 1.
- Content and digital learning platform providers
Not identified in the source; competition in this segment cannot be verified from the annual report.
- Assessment and credentialling providers
The source names no competitors; assessment and credentialling are described as part of the company’s integrated chain.
- Career and technical education providers
The eDynamic Learning acquisition places the company in this segment, where competition is not detailed in the report.
- Online education and virtual school providers
Connections Academy operates in this space; the source does not list direct competitors.
News & filings
In the press
- Allison Pearson said to be negotiating exit from Daily Telegraph amid job cullThe Guardian World · 28 Oct 2026 · EN
- EXCLUSIV FOTO Tranzacție surpriză în România. Tudor Iliescu, vicepreședintele gigantului britanic Pearson, cumpără clădirea One North GateProfit.ro · 23 Sept 2026 · RO
- Justin Pearson and Brent Taylor win primaries for key Tennessee House seatThe Guardian World · 07 Aug 2026 · RO
Annual reports (ESEF)
- Annual report 202512 May 2026
- Annual report 202417 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Pearson plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.