Pearson narrows its profit range and reshapes its assessment business

Pearson ($PSON) reported underlying revenue growth of 6% in the third quarter of 2026 and 5% across the first nine months. It narrowed its full-year 2026 adjusted operating-profit range to £650–675 million from £640–685 million, while retaining mid-single-digit underlying revenue growth and 90–100% free cash flow conversion targets. Assessment and Qualifications grew 10% in the quarter and Virtual Learning expanded 13%, although English Language Learning declined 5%.

The company completed its acquisition of assessment-technology provider ITS and agreed to buy AI skills-verification business Workera, with the latter expected to close before year-end. Pearson also plans four customer-focused business units from the start of 2027. Reorganisation costs are expected to total approximately £50 million across 2026 and 2027, around half non-cash, and will be excluded from adjusted operating profit. Associated savings are earmarked for reinvestment.

Sources:

• PR Newswire