PSO News & Events

Pearson (PSO) and Salesforce (CRM) announced an expanded strategic partnership aimed at accelerating AI readiness and skills development across Salesforce's global workforce. The multi-year collaboration creates an AI-powered approach to workforce development by connecting Salesforce's leading CRM technologies with Pearson's expertise in skills intelligence, assessment, and learning design. This partnership will help Salesforce anticipate emerging role needs, build critical capabilities at scale, and validate skills across its organization.

The company expects, "Assessment & Qualifications: Low to mid-single digit underlying sales 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 & Skills: Growth to be driven by a solid performance in Vocational Qualifications and strategic account growth in Enterprise Solutions. Adjusted Operating Profit: GBP 640M-GBP 685M at FX rates as at the end of 2025, which includes lower amortisation in 2026 following the 2025 product development impairment. Interest: Adjusted net finance costs of c.GBP 80M - includes associated costs of funding the GBP 350M share buyback. Tax rate: We expect the effective tax rate on adjusted profit before tax to be c.25%. Cash flow: We expect a free cash flow conversion of 90-100%."

The company said, "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."

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 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.