Pearson Reports 14% Profit Growth as AI Strategy Takes Root

The education giant’s underlying revenue climbed 4% to £1.78 billion, bolstered by a 19% surge in Virtual Learning and a recovery in Assessment & Qualifications. While the English Language Learning division faced headwinds from tighter migration policies, the company’s Enterprise segment maintained momentum, securing new partnerships with firms like Adobe and a major AI laboratory to support workforce upskilling.

Financial discipline underpinned the results, with free cash flow rising to £259 million. Pearson’s balance sheet remains resilient, supporting a 5% increase in the interim dividend to 8.2p per share and the completion of a £350 million share buyback program. Despite global market volatility, management remains confident in its medium-term trajectory, targeting consistent margin expansion and revenue growth through its integrated education-to-employment ecosystem.