Pearson Stock | Forecast, Price Target & Outlook 2026

Pearson

LSE:PSON

£ 10,45

£0,00 (0,00%)

10,45 £

£0,00 (0,00%)

End-of-day quote: 12/12/2025

Pearson Stock Value

Analysts currently give Pearson a rating of Outperform.

Outperform

Pearson Company Info

EPS Growth 5Y

1,01%

Market Cap

£6,64 B

Long-Term Debt

£0,71 B

Annual earnings

03/02/2026

Dividend

£0,24

Dividend Yield

2,33%

Founded

1844

Industry

Communication Services

Country

United Kingdom

Website

Pearson

ISIN Number

GB0006776081

Website

http://plc.pearson.com/en-GB

Analyst Price Target

£11,75

12.44%

Last Update: 12/14/2025

Analysts: 9

Highest Price Target £14,60

Average Price Target £11,75

Lowest Price Target £10,00

In the last five quarters, Pearson’s Price Target has risen from £12,52 to £13,82 - a 10,38% increase. Eight analysts predict that Pearson’s share price will increase in the coming year, reaching £11,75. This would represent an increase of 12,44%.

Top growth stocks in the communication services sector (5Y.)

What does Pearson do?

Pearson plc operates as a learning company worldwide. The company’s revenue streams are courseware, assessments and services. Courseware includes curriculum materials provided in book form and/or via access to digital content. Assessments includes test development, processing and scoring services provided to governments, educational institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, as well as the provision of online learni...

Pearson plc operates as a learning company worldwide.

The company’s revenue streams are courseware, assessments and services. Courseware includes curriculum materials provided in book form and/or via access to digital content. Assessments includes test development, processing and scoring services provided to governments, educational institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, as well as the provision of online learning services in partnership with universities and other academic institutions.

Strategy

The company’s strategic priorities are capital allocation; innovation; and performance culture.

Courseware

Revenue is generated from customers through the sales of print and digital courseware materials to schools, bookstores and direct to individual learners. Goods and services may be sold separately or purchased together in bundled packages. The goods and services included in bundled arrangements are considered distinct performance obligations, except for where Pearson provides both a licence of intellectual property and an ongoing hosting service. As the licence of intellectual property is only available with the concurrent hosting service, the licence is not treated as a distinct performance obligation separate from the hosting service.

Assessments

Revenue is primarily generated from multi-year contractual arrangements related to large-scale assessment delivery, such as contracts to process qualifying tests for individual professions and government departments and is recognized as performance occurs.

Services

Revenue is primarily generated from multi-year contractual arrangements related to large-scale educational service delivery to academic institutions, such as schools and higher education universities. Under these arrangements, while an agreement may span multiple years, the contract duration has been determined to be each academic period based on the structure of contracts, including clauses regarding termination. While in some cases the customer may have the ability to terminate during the term for convenience, significant financial or qualitative barriers exist limiting the potential for such terminations in the middle of an academic period. The academic period for this customer base is normally an academic year for schools and a semester for higher education universities.

Divisions

The company operates through five main global business divisions: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills.

The following describes the principal activities of the five main operating segments:

Assessment & Qualifications – Pearson VUE, US Student Assessment, Clinical Assessment, UK GCSE and A Levels and International academic qualifications and associated courseware including the English-speaking Canadian and Australian K-12 businesses, and PDRI;

Virtual Learning – Virtual Schools and Online Program Management;

English Language Learning – Pearson Test of English, Institutional Courseware and English Online Solutions;

Workforce Skills – BTEC, GED, TalentLens, Faethm, Credly, Pearson College and Apprenticeships; and

Higher Education – U.S., Canadian and International Higher Education Courseware businesses.

Assessment & Qualifications

The Assessment & Qualifications division comprises four business units: Pearson VUE, Clinical Assessment, U.S. Student Assessment, and U.K. & International Qualifications.

Pearson VUE excels as a global leader in scaled testing services, serving numerous industry sectors with its extensive test centre network and flexible delivery options. The company meets the critical need for workforce reskilling and professional certification, underpinning professional development. In Clinical Assessment, the company provides high-quality, research-backed assessment products for mental health and learning evaluations, serving professionals in healthcare and education sectors.

The company’s US Student Assessment specialises in customised large-scale testing programmes for US K-12 education, focusing on state-specific criteria and providing insights to stakeholders. Outside the US, the company offers globally recognised UK-curriculum-based qualifications, such as GCSEs and A levels, as well as courseware for English-speaking regions throughout the world, supporting foundational student progression worldwide. These qualifications, coupled with its content expertise and scale of delivery, make it a key player in shaping global education standards and students’ futures

In U.K. & International Qualifications, the company is capitalising on the growing demand for international education, and Clinical Assessment is building out its international portfolio, creating new digitally enabled business subscription models and providing solutions to be used in pharmaceutical trials.

Virtual Learning

The company provides-quality, highly accountable online learning solutions for K-12 students through two main offerings: Partner Schools (c.96% sales) and District Partnerships (c.3% sales).

Partner Schools provides tailored virtual school solutions to public K-12 districts in the US, combining Pearson’s courseware, instructional services and support for high-quality, flexible online learning. District Partnerships offers customisable virtual education solutions for K-12 districts, focusing on smaller student cohorts with a more disaggregated approach than Partner Schools, ensuring access to quality, adaptable remote learning for various needs.

The company scaled its career and college readiness programmes and enhanced curriculum in 2024 and will expand the offering portfolio-wide in 2025.

Higher Education

The company provides world-class learning experiences in the post-secondary market. The company also competes in select disciplines for students in Secondary School Honours, Advanced Placement, International Baccalaureate, Dual Enrolment, and Career and Technical Education (CTE) programmes.

The company creates teaching and learning experiences that are built on the front end of innovation to deliver positive outcomes at scale. The company brings learning to life for millions of students to help them succeed and create pathways to careers. The company also leverages its strong relationships with educators to address their needs.

The company's active learning is powered by features including AI study tools, formative assessments, audio and video media, and practice modules. The company's eText, MyLab and Mastering, and Revel products are created by expert authors, backed by learning science, and personalised with interactive features.

English Language Learning

The company's comprehensive language learning and assessment solutions include institutional courseware, Wizard by Pearson, and Mondly by Pearson, designed for varied learning environments. For individuals looking to demonstrate their English proficiency, the company provides the Pearson Test of English (PTE), Versant by Pearson, and institutional proficiency assessments. The company blends pedagogical expertise in English language education with advanced technology to deliver personalised, scalable learning and assessment solutions for individuals pursuing personal, academic, or professional objectives.

In 2024, the company achieved significant milestones, including the launch of PTE Core, its newest test designed to meet Canada’s specific migration requirements. Wizard by Pearson in Brazil expanded, driven by its new online business and new government partnerships. During the year, the company also developed two new AI products: one assisting teachers in generating lesson plans and another offering digital language tutoring. In 2025, the company will continue to leverage AI and technology to enhance learning and assessment, with a focus on growth in key regions.

Workforce Skills

The company offers career-focused qualifications and enterprise talent solutions through two distinct offerings: Vocational Qualifications (VQ) and Workforce Solutions, which includes the General Education Development (GED) US High School certification alternative. Workforce Skills will evolve to become Enterprise Learning and Skills, incorporating IT & Professional Learning (ITP).

The company's VQ business is a global leader in career-focused qualifications, offering programmes that are rooted in real-world work scenarios. These qualifications enable students, apprentices, and workers in the UK and globally to develop and apply knowledge, skills, and behaviours essential for employability. One in five working-age individuals in the UK holds a BTEC from Pearson, and its vocational qualifications are adopted by ministries of education globally to advance skills reform.

Workforce Solutions addresses the evolving needs of businesses for skilled talent in a rapidly changing economy, including responding to the opportunity and challenge of AI. The company assists companies in understanding and bridging their skills gaps, through talent planning and sourcing, and genuine skills development to deliver commercial objectives. Workforce Solutions will be renamed Enterprise Solutions from January 2025.

The GED helps individuals enter the workforce and pursue higher education, in addition to enabling employees to advance in their careers. It has over 20m graduates and is recognised across 90 countries. In 2024, the company delivered a strong performance, with its qualifications, learning and skills solutions performing well in institutional and corporate markets.

Operating Cycles

The Higher Education courseware market is primarily driven by an adoption cycle, with colleges and professors typically refreshing their courses and selecting revised programs on a regular basis, often in line with the release of new content or new technology offerings. The company renews its product development assets to reflect new content and capabilities which enhance the attractiveness of its offering to both educators and learners.

Analysis of historical data shows that the typical life cycle of Higher Education content is up to five years but varies by product. In addition to content, the company develops technology platforms for products and the life cycle for these platforms can be in excess of the five years cycle for content. Again, the operating cycle for content and platforms mirrors the market cycle.

Historically for a major content refresh a development phase of typically 12 to 18 months for Higher Education precedes the period during which the company receives and delivers against orders for the products it has developed for the programme.

The operating cycles in respect of the company’s professional and clinical content are more specialised in nature as they relate to educational or heavy reference products released into smaller markets (e.g. the financial training and IT sectors). Nevertheless, in these markets, there is still a regular cycle of product renewal, in line with demand which management monitor. Typically, the life cycle is five years for Professional content and seven years for Clinical content. Elsewhere in the company, operating cycles are typically less than one year.

Competition

In Assessment & Qualifications, the company competes with other companies offering test development and administration including Cambium, Data Recognition Corp (DRC), Educational Testing Service (ETS), and NWEA, and others.

The Professional Certification business competes with companies, such as Prometric PSI and Meazure Learning, as well as a number of other modular players. The Clinical Assessment business competes with companies such as MHS and WPS. The UK and International qualifications business competes with companies, such as AQA, Cambridge Assessment and OCR, as well as a number of specialised players.

In Virtual Learning, the Group competes with companies, such as Stride in virtual schools, alongside players that specialise in a particular academic discipline or focus on a learning technology.

In Institutional English Language Learning, the Group competes with Oxford University Press, Macmillan and other publishers. In English High Stakes Assessments, Pearson Test of English competes with alternative tests including iELTS and TOEFL. In the online language learning market, the company competes with businesses, such as Duolingo, Babbel and Busuu, as well as a number of smaller players.

In Enterprise Learning and Skills, the vocational qualifications business competes with companies, such as City & Guilds, alongside other niche and local market providers and the assessments businesses compete with companies such as HiSET in high school equivalency and SHL in skills and ability testing. In addition, the business of content/courseware creation for enterprises competes with providers, such as Skillsoft, and the enterprise data, technology and learning businesses compete with Learning platforms, such as Guild in education-as-a-benefit, credential platforms, such as Accredible, talent management platforms, such as Eightfold.ai, and data services such as Emsi.

In Higher Education, the company competes with other publishers and creators of educational materials and services. These companies include publishers, such as Cengage Learning and McGraw-Hill Education, as well as non-mainstream publishers.

History

Pearson plc was founded in 1844. The company was incorporated in 1897.

Pearson Questions and Answers

Which sectors generate sales and which are the top 3 markets?

Educational services: 70% Digital learning solutions: 20% Examination and certification services: 10% TOP 3 Markets: USA: 50% United Kingdom: 20% Canada: 10% Pearson plc generates the majority of its revenue from educational services, accounting for approximately 70% of total revenue. A signific...

At which locations are the company’s products manufactured?

Production Sites: Globally distributed, mainly in the UK and the USA (estimated 2023) Pearson plc is a globally operating educational company that does not produce its products and services in traditional production facilities, as is the case with manufacturing companies. Instead, Pearson focuses on...

What strategy does Pearson pursue for future growth?

Strategy for Future Growth of Pearson plc: Digitization and Online Learning: Pearson is strongly focusing on digitizing its educational offerings. The company is investing in online learning platforms and digital content to cater to the growing market for e-learning. Personalized Educational Sol...

Which raw materials are imported and from which countries?

Main materials: Paper, printing inks, digital technologies Countries of origin: USA, China, EU countries Pearson plc, as a leading educational company, mainly imports materials needed for the production of textbooks and digital learning solutions. This includes paper and printing inks, which are ess...

How strong is the company’s competitive advantage?

Market share in the education sector: 20% (estimated for 2025) Digital revenue share: 70% (2025) R&D investments: 5% of revenue (2025) Pearson plc has a significant competitive advantage in the education sector, especially due to its high market share and strong presence in the digital education...

What is the share of institutional investors and insider buying/selling?

Institutional Investor Share: approx. 70% (estimated for 2025) Insider Buys/Sells: No significant transactions in the last year (2024) The institutional investor share in Pearson plc traditionally stands at around 70%, indicating the trust of large funds and institutional investors in the company. T...

What percentage market share does Pearson have?

Market share of Pearson plc: Estimated 12% (2025) Top competitors and their market shares: McGraw Hill Education: 15% Cengage Learning: 14% Houghton Mifflin Harcourt: 10% Wiley: 9% Scholastic Corporation: 8% Pearson plc is one of the leading providers in the education sector, especially in the are...

Is Pearson stock currently a good investment?

Revenue Growth: 5.2% (2024) Profit Growth: 4.8% (2024) Market Share in the Education Sector: 12% (2024) Pearson plc recorded solid revenue growth of 5.2% in 2024, attributed to successful adaptation to digital educational platforms and increased demand for online learning solutions. The 4.8% profit...

Does Pearson pay a dividend – and how reliable is the payout?

Dividend Yield: 3.5% (estimated for 2025) Dividend History: Continuous payout in recent years Pearson plc has regularly distributed dividends in recent years, indicating a certain level of reliability. The dividend yield for 2025 is estimated to be around 3.5%, based on trends from previous years an...

Pearson Stock Value

Pearson Company Info

Analyst Price Target

Top growth stocks in the communication services sector (5Y.)

What does Pearson do?

Pearson Questions and Answers

Offer & Services

Service & Collaboration

Company & Legal