Pearson Reports Q1 2026 Adjusted Operating Profit and Growth Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy PSO?
Source: seekingalpha
- Adjusted Operating Profit: Pearson's Q1 2026 adjusted operating profit is projected between £640 million and £685 million, reflecting stable growth driven by new contracts and products, showcasing the company's resilience and market adaptability.
- Share Buyback Progress: As of March 31, 2026, Pearson has repurchased £219 million worth of shares at an average price of 964 pence, indicating proactive capital management that enhances earnings per share and shareholder returns.
- Sales Growth Outlook: The company anticipates mid-single-digit growth in overall sales, particularly in the Assessment and Qualifications segment, benefiting from new contracts and pricing strategies, highlighting its competitive edge and innovation in the education market.
- Cash Flow and Tax Rate: Pearson expects a free cash flow conversion rate of 90-100%, with an effective tax rate on adjusted profits projected at 25%, providing robust support for future investments and shareholder returns.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PSO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PSO
About PSO
Pearson PLC is a learning company with its principal operations in the education, assessment and certifications markets. The Company’s divisions include Assessment & Qualifications, Virtual Learning, Higher Education, English Language Learning and Enterprise Learning & Skills. The Assessment & Qualifications division includes Pearson VUE, US Student Assessment, Clinical Assessment, UK-curriculum-based qualifications, such as GCSEs and A levels, as well as courseware for English-speaking regions throughout the world. The Virtual Learning division includes virtual schools and online program management. The Higher Education includes the United States, Canadian, and International Higher Education Courseware businesses. The English Language Learning division includes Pearson Test of English, Institutional Courseware and English Online Solutions. 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.
Pearson Reports Q1 2026 Adjusted Operating Profit and Growth Guidance
- Adjusted Operating Profit: Pearson's Q1 2026 adjusted operating profit is projected between £640 million and £685 million, reflecting stable growth driven by new contracts and products, showcasing the company's resilience and market adaptability.
- Share Buyback Progress: As of March 31, 2026, Pearson has repurchased £219 million worth of shares at an average price of 964 pence, indicating proactive capital management that enhances earnings per share and shareholder returns.
- Sales Growth Outlook: The company anticipates mid-single-digit growth in overall sales, particularly in the Assessment and Qualifications segment, benefiting from new contracts and pricing strategies, highlighting its competitive edge and innovation in the education market.
- Cash Flow and Tax Rate: Pearson expects a free cash flow conversion rate of 90-100%, with an effective tax rate on adjusted profits projected at 25%, providing robust support for future investments and shareholder returns.
See More
13D Management Sells Entire Stake in Asbury Automotive Group
- Stake Change: 13D Management completely divested its position in Asbury Automotive Group in Q4 2025, previously holding shares worth $5.2 million, indicating a cautious outlook on the stock's future performance.
- Asset Allocation Shift: The sale eliminated Asbury's 5% allocation in 13D's assets under management, reflecting a reevaluation of its investment portfolio amidst changing market conditions.
- Market Performance: As of February 16, 2026, Asbury's stock price stood at $229.44, down 24.4% over the past year, significantly underperforming the S&P 500 by 36.2 percentage points, raising concerns about its growth prospects.
- Industry Outlook: While Asbury has shown stable growth over the past two years, rising new vehicle costs and high valuations may pressure demand and margins, prompting 13D Management to seek more attractive investment opportunities.
See More
13D Management Fully Exits Asbury Automotive Stake
- Complete Exit: In Q4 2025, 13D Management sold all 21,337 shares of Asbury Automotive Group, previously valued at $5.2 million, indicating a complete withdrawal that may reflect concerns about market prospects.
- Asset Allocation Shift: Asbury accounted for 5.0% of 13D's reportable assets in Q3, but the complete divestment in Q4 suggests a significant decline in the fund's confidence in the company.
- Market Environment Impact: Although Asbury's price-to-earnings ratio stands at 7, indicating relative cheapness, rising costs of new vehicles and a pullback in consumer spending could pressure future demand and margins, prompting 13D to seek more attractive investment opportunities.
- Investment Advisory Warning: Before considering an investment in Asbury Automotive Group, it is advisable to review the top 10 stocks recommended by The Motley Fool's analyst team, as Asbury was not included, reflecting a cautious market outlook on its future performance.
See More
13D Management LLC Sells Match Group Shares
- Share Reduction Details: 13D Management LLC sold 132,779 shares of Match Group in Q4 2026, resulting in a $4.69 million decrease in quarter-end position value, reflecting the combined effects of share sale and price movement.
- Asset Management Ratio Shift: This sale reduced Match Group's representation in 13F reportable assets from 4.5% to 5.6%, indicating a significant reduction amid broader fund downsizing trends.
- Market Performance Analysis: As of February 13, 2026, Match Group shares were priced at $30.50, down 8.2% year-over-year and underperforming the S&P 500 by 20 percentage points, highlighting intensified market competition and shifting user preferences.
- Investor Focus: The key to Match Group's future growth lies in how its platforms adapt to changing user preferences; despite maintaining 16 positions within approximately $84.05 million in assets, analysts note its absence from top investment stock lists may impact investor confidence.
See More
13D Management Fully Exits Match Group Holdings
- Shareholding Change: According to an SEC filing on February 17, 2026, 13D Management LLC sold its entire holding of 132,779 shares of Match Group during Q4, resulting in a value change of $4.69 million, indicating a diminished confidence in the company.
- Performance Metrics: As of February 13, 2026, Match Group's stock was priced at $30.50, down 8.2% year-over-year and underperforming the S&P 500 by 20 percentage points, reflecting market concerns about its future growth prospects.
- Portfolio Overview: Post-exit from Match Group, 13D Management's 13F report shows total reportable AUM of $84.05 million, with top holdings including Twilio ($8.64 million) and Mercury Systems ($7.58 million), indicating a preference for other tech investments.
- Market Competition Analysis: Online dating platforms operate as digital marketplaces where user activity's network effects are crucial, and Match Group must continuously innovate in product design and brand relevance to adapt to shifting user preferences and emerging competitors.
See More
Major Earnings Reports Expected on Friday from Multiple Companies
- Earnings Report Preview: On Friday, Hawaiian Electric Industries (HE), Pearson Plc (PSO), and Sociedad Quimica y Minera de Chile S.A (SQM) are set to release their earnings reports, with market participants keenly observing the potential impact on stock prices.
- Market Reaction Anticipation: Investors are eagerly awaiting these earnings, particularly in the current economic climate, where the results could significantly influence the short-term performance of the respective stocks.
- Industry Dynamics Analysis: As a key player in the energy sector, Hawaiian Electric's earnings will reflect the impact of energy demand and price fluctuations on its profitability, providing insights into the sector's health.
- Global Market Focus: The performance of Pearson and SQM will be closely monitored by global markets, especially against the backdrop of changing demands in education and mining resources.
See More
Pearson Reports Q1 2026 Adjusted Operating Profit and Growth Guidance
- Adjusted Operating Profit: Pearson's Q1 2026 adjusted operating profit is projected between £640 million and £685 million, reflecting stable growth driven by new contracts and products, showcasing the company's resilience and market adaptability.
- Share Buyback Progress: As of March 31, 2026, Pearson has repurchased £219 million worth of shares at an average price of 964 pence, indicating proactive capital management that enhances earnings per share and shareholder returns.
- Sales Growth Outlook: The company anticipates mid-single-digit growth in overall sales, particularly in the Assessment and Qualifications segment, benefiting from new contracts and pricing strategies, highlighting its competitive edge and innovation in the education market.
- Cash Flow and Tax Rate: Pearson expects a free cash flow conversion rate of 90-100%, with an effective tax rate on adjusted profits projected at 25%, providing robust support for future investments and shareholder returns.
See More
13D Management Sells Entire Stake in Asbury Automotive Group
- Stake Change: 13D Management completely divested its position in Asbury Automotive Group in Q4 2025, previously holding shares worth $5.2 million, indicating a cautious outlook on the stock's future performance.
- Asset Allocation Shift: The sale eliminated Asbury's 5% allocation in 13D's assets under management, reflecting a reevaluation of its investment portfolio amidst changing market conditions.
- Market Performance: As of February 16, 2026, Asbury's stock price stood at $229.44, down 24.4% over the past year, significantly underperforming the S&P 500 by 36.2 percentage points, raising concerns about its growth prospects.
- Industry Outlook: While Asbury has shown stable growth over the past two years, rising new vehicle costs and high valuations may pressure demand and margins, prompting 13D Management to seek more attractive investment opportunities.
See More
13D Management Fully Exits Asbury Automotive Stake
- Complete Exit: In Q4 2025, 13D Management sold all 21,337 shares of Asbury Automotive Group, previously valued at $5.2 million, indicating a complete withdrawal that may reflect concerns about market prospects.
- Asset Allocation Shift: Asbury accounted for 5.0% of 13D's reportable assets in Q3, but the complete divestment in Q4 suggests a significant decline in the fund's confidence in the company.
- Market Environment Impact: Although Asbury's price-to-earnings ratio stands at 7, indicating relative cheapness, rising costs of new vehicles and a pullback in consumer spending could pressure future demand and margins, prompting 13D to seek more attractive investment opportunities.
- Investment Advisory Warning: Before considering an investment in Asbury Automotive Group, it is advisable to review the top 10 stocks recommended by The Motley Fool's analyst team, as Asbury was not included, reflecting a cautious market outlook on its future performance.
See More
13D Management LLC Sells Match Group Shares
- Share Reduction Details: 13D Management LLC sold 132,779 shares of Match Group in Q4 2026, resulting in a $4.69 million decrease in quarter-end position value, reflecting the combined effects of share sale and price movement.
- Asset Management Ratio Shift: This sale reduced Match Group's representation in 13F reportable assets from 4.5% to 5.6%, indicating a significant reduction amid broader fund downsizing trends.
- Market Performance Analysis: As of February 13, 2026, Match Group shares were priced at $30.50, down 8.2% year-over-year and underperforming the S&P 500 by 20 percentage points, highlighting intensified market competition and shifting user preferences.
- Investor Focus: The key to Match Group's future growth lies in how its platforms adapt to changing user preferences; despite maintaining 16 positions within approximately $84.05 million in assets, analysts note its absence from top investment stock lists may impact investor confidence.
See More
13D Management Fully Exits Match Group Holdings
- Shareholding Change: According to an SEC filing on February 17, 2026, 13D Management LLC sold its entire holding of 132,779 shares of Match Group during Q4, resulting in a value change of $4.69 million, indicating a diminished confidence in the company.
- Performance Metrics: As of February 13, 2026, Match Group's stock was priced at $30.50, down 8.2% year-over-year and underperforming the S&P 500 by 20 percentage points, reflecting market concerns about its future growth prospects.
- Portfolio Overview: Post-exit from Match Group, 13D Management's 13F report shows total reportable AUM of $84.05 million, with top holdings including Twilio ($8.64 million) and Mercury Systems ($7.58 million), indicating a preference for other tech investments.
- Market Competition Analysis: Online dating platforms operate as digital marketplaces where user activity's network effects are crucial, and Match Group must continuously innovate in product design and brand relevance to adapt to shifting user preferences and emerging competitors.
See More
Major Earnings Reports Expected on Friday from Multiple Companies
- Earnings Report Preview: On Friday, Hawaiian Electric Industries (HE), Pearson Plc (PSO), and Sociedad Quimica y Minera de Chile S.A (SQM) are set to release their earnings reports, with market participants keenly observing the potential impact on stock prices.
- Market Reaction Anticipation: Investors are eagerly awaiting these earnings, particularly in the current economic climate, where the results could significantly influence the short-term performance of the respective stocks.
- Industry Dynamics Analysis: As a key player in the energy sector, Hawaiian Electric's earnings will reflect the impact of energy demand and price fluctuations on its profitability, providing insights into the sector's health.
- Global Market Focus: The performance of Pearson and SQM will be closely monitored by global markets, especially against the backdrop of changing demands in education and mining resources.
See More
