Pearson Q4 Sales Growth Accelerates 8%, Shares Slide

Pearson (LON: PSON) shares fell 4% to 1,032.5p on Wednesday despite the company reporting strong fourth-quarter momentum and full-year results in line with guidance.

The education group delivered underlying sales growth of 4% for 2025, with Q4 accelerating to 8%. Adjusted operating profit is expected to come in at £610 million to £615 million, up about 6% on an underlying basis. Free cash flow conversion exceeded 95%, alongside a £0.1 billion state aid repayment.

Pearson highlighted progress on key strategic initiatives, including the launch of Communication Coach, an AI-powered learning tool integrated into Microsoft 365, and new partnerships with IBM and Google Cloud.

The company said these developments support long-term growth in Enterprise and professional assessment markets.

Chief Executive Omar Abbosh stated: “In 2025 we successfully delivered against our financial and strategic priorities by expanding our partnerships, growing our Enterprise reach, and advancing the use of AI to improve learning and upskilling. We enter 2026 with momentum, are excited about the opportunities that lie ahead, and remain well positioned to deliver value to our stakeholders.”

Across business units, Q4 sales climbed in Assessment & Qualifications (8%), Virtual Learning (20%), English Language Learning (8%), and Enterprise Learning & Skills (13%). Higher Education was flat in the quarter but up 2% for the year.

Pearson maintained its medium-term outlook, expecting mid–single digit sales growth, annual margin expansion of around 40 basis points and continued strong cash generation. Full-year results will be published on 27 February.