Pearson Reports 4% Increase in FY Adjusted EPS to 64.5p
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Source: seekingalpha
- Strong Financial Performance: Pearson's FY 2024 adjusted earnings per share rose by 4% to 64.5p, indicating sustained improvement in revenue and profitability, despite a modest revenue increase of 0.8% to £3.58 billion.
- Profitability Enhancement: The group reported an adjusted operating profit of £614 million, up 6% year-over-year, with operating margin expanding from 16.9% to 17.2%, reflecting successful cost control and operational efficiency initiatives.
- Robust Cash Flow: Free cash flow increased by 8%, achieving a conversion rate of 125%, demonstrating strong cash flow management amid high sales growth, thereby enhancing flexibility for future investments.
- Positive Future Outlook: The company maintains an optimistic outlook for 2026, projecting mid-single-digit underlying sales growth and adjusted operating profit between £640 million and £685 million, showcasing confidence in future market demand.
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Analyst Views on PSO
About PSO
Pearson PLC is a lifelong learning company with its principal operations in the education, assessment and certifications markets. The Company's segments include Assessment & Qualifications, Virtual Learning, English Language Learning, Enterprise Learning & Skills, and Higher Education. The Assessment & Qualifications segment includes Pearson professional assessments, United States student assessment, clinical assessment, United Kingdom general certificate of secondary education (GCSE), A-levels and international academic qualifications, and others. The Virtual Learning segment includes virtual schools and online program management. The English Language Learning segment includes Pearson Test of English, Institutional Courseware and English Online Solutions. The Higher Education segment includes the United States, Canadian, and International Higher Education Courseware businesses. The Enterprise Learning & Skills division includes vocational qualifications and enterprise solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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