Continued execution drives good Q1 result. On track to deliver 2026 guidance.
-- Underlying Group sales up 4% in Q1.
-- All business units performing in line with expectations; continued strong
performance in Virtual Learning with underlying sales up 21%, and
Assessment & Qualifications expected to return to growth from Q2.
-- On track to deliver 2026 full year guidance.
-- Continued progress against our 2026 priorities, including:
-- Advancing core business and enterprise power metrics, with an
Enterprise strategic partnership with Salesforce and US Student
Assessment contract win in Wyoming (link here).
-- Leading with the application of innovative technologies, including
the roll out of Communication Coach - an AI-powered learning
solution integrated into Microsoft 365.
-- Expansion of AI learning offerings through the launch of a
Foundations of AI course for teachers (link here) and the first
professional certification for Adobe Firefly (link here), helping
to upskill learners and workers in the AI era.
-- GBP350m share buyback programme progressing well.
LONDON, May 1, 2026 /PRNewswire/ --
Omar Abbosh, Pearson's Chief Executive, said:
"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. We remain confident in the momentum we are seeing for 2026 and in our ability to deliver attractive growth for our shareholders."
Underlying Group sales growth of 4% in Q1 2026
-- Assessment & Qualifications sales were down 1%, as expected. Growth in
Pearson Professional Assessments was driven by continued momentum from
new contracts launched last year, partially offset by headwinds in PDRI.
Clinical Assessment grew due to the continued traction of our products,
particularly in International markets, pricing, and digital product
growth. US Student Assessment won a new statewide assessment contract in
Wyoming in the period, but sales declined impacted by the previously
disclosed loss of the New Jersey contract. UK & International
Qualifications declined slightly due to delivery phasing, reversing in
Q2.
-- Virtual Learning sales grew 21%, reflecting strong enrolment momentum
within 2025/2026 academic year with enrolment growth increasing to 15%,
alongside funding upside that phased earlier than last year, and
favourable mix. Enrolment performance continues to be supported by
ongoing investment in marketing and strong execution.
-- Higher Education sales were up 2%, driven by continued solid performance
in our core US Courseware business, partially offset by challenging
trading conditions in mature International markets. In the quarter, there
was growth of 19% in Inclusive Access and 2% in US digital subscriptions.
-- English Language Learning sales increased 2%, driven by Institutional.
Pearson Test of English $(PTE)$ declined slightly due to a continued tough
market backdrop.
-- Enterprise Learning & Skills sales were up 8%. Vocational Qualifications
grew well, in part benefitting from revenue phasing. Enterprise Solutions
grew strongly, driven by the monetisation of strategic partnerships,
including Salesforce.
On track to deliver 2026 guidance and medium term outlook unchanged
-- For 2026, we expect to deliver mid-single digit underlying sales growth,
adjusted operating profit of GBP640m-GBP685m at FX rates as at the end of
2025 (GBP:$ 1.35), including the impact of the 2025 product development
impairment1, and free cash flow conversion2 of 90%-100%.
-- Over the medium term, Pearson continues to be positioned to deliver a
mid-single digit underlying sales growth CAGR, sustained margin
improvement that will equate to an average increase of 40 basis points
per annum and strong free cash conversion, in the region of 90% to 100%,
on average, across the period.
Strong financial position
-- Pearson's financial position remains strong, with low leverage and strong
liquidity.
-- Our GBP350m share buyback programme is progressing well. As at 31st March
2026, GBP219m of shares had been repurchased at an average price of 964p
per share.
-- In April 2026, we successfully issued a GBP350m 10-year bond under our
Euro Medium Term Note (EMTN) programme.
Financial summary
Q1 2026
Sales Underlying growth
Assessment & Qualifications (1) %
----------------------------- ------------------
Virtual Learning 21 %
----------------------------- ------------------
Higher Education 2 %
----------------------------- ------------------
English Language Learning 2 %
----------------------------- ------------------
Enterprise Learning & Skills 8 %
----------------------------- ------------------
Total 4 %
----------------------------- ------------------
Throughout this announcement growth rates are stated on an underlying basis unless otherwise stated. Underlying growth rates exclude currency movements, and portfolio changes.
2026 guidance summary
Underlying Sales growth Group Mid-single digit growth.
-------------------------- -------------------------
Assessment & Low to mid-single digit
Qualifications growth, driven by new
contracts, products and
pricing. Returning to
growth from Q2, supported
by new business and
recently awarded
contracts.
-------------------------- -------------------------
Virtual Learning Stronger growth than
2025, particularly in H1,
driven by a full year of
enrolment growth.
-------------------------- -------------------------
Higher Education Will grow more than 2025,
supported by continued
product and platform
innovation, pricing and
Inclusive Access in our
core US courseware
business, with
improvement in the K12
channel.
-------------------------- -------------------------
English Language Learning Higher growth than 2025
driven by market share
gains and pricing, with
PTE returning to growth.
Growth will again be Q4
weighted given the
seasonality of the
business.
-------------------------- -------------------------
Enterprise Learning & Growth to be driven by a
Skills solid performance in
Vocational Qualifications
and strategic account
growth in Enterprise
Solutions.
-------------------------- -------------------------
Group Profit Adjusted Operating Profit GBP640m-GBP685m at FX
rates as at the end of
2025 (GBP:$ 1.35), which
includes lower
amortisation in 2026
following the 2025
product development
impairment.
-------------------------- -------------------------
Interest Adjusted net finance
costs of c.GBP80m --
includes associated costs
of funding the GBP350m
share buyback.
-------------------------- -------------------------
Tax rate We expect the effective
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May 01, 2026 02:10 ET (06:10 GMT)