Is Pearson stock a buy right now?
As of early May 2025, Pearson PLC (LSE: PSON) is trading at approximately 1,153 GBX, with recent average daily trading volume hovering around 1.2 million shares. The company’s latest annual results underscore its evolution as a leading provider of digital learning, showing a ten percent increase in adjusted operating profit to £600 million, a robust margin expansion, and a raised annual dividend. Strategic moves—such as the ongoing £350 million share buyback—highlight management’s commitment to shareholder returns. While short-term technical indicators point to some negative momentum, general market sentiment remains constructively long-term, buoyed by Pearson’s stable fundamentals, rising profitability, and swift adoption of AI-powered education tools. The broader education technology sector continues to offer resilient demand and expansion potential, even in a volatile macroeconomic backdrop. Notably, Pearson’s digital transformation positions it strongly to capitalise on global trends shaping the future of learning. According to the consensus of more than 32 national and international banks, the target price for Pearson shares is set at around 1,499 GBX, reflecting expectations for steady growth through digital innovation and operational strength. As Pearson balances proven fundamentals with forward-looking initiatives, the current environment is quietly supportive for those considering long-term exposure to education technology.
- Consistent adjusted profit growth and strong operating cash conversion rates above 100%.
- Stable, growing dividend yield supported by healthy free cash flow and disciplined capital returns.
- Rapid expansion of AI-powered and digital education offerings across core business lines.
- Strategic global partnerships accelerate enterprise and institutional learning market share.
- Lower volatility stock (beta 0.42), historically resilient in periods of broad market uncertainty.
- Short-term technical signals are currently bearish despite robust underlying fundamentals.
- Competitive digital education landscape and ongoing transformation may slow immediate gains.
- What is Pearson?
- How much is Pearson stock?
- Our full analysis on Pearson </b>stock
- How to buy Pearson stock in United Kingdom?
- Our 7 tips for buying Pearson stock
- The latest news about Pearson
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Pearson's performance for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to analyse market trends and identify the most promising investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and never will be, remunerated by Pearson.
What is Pearson?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | UK-based multinational, well-known in global education and digital learning markets. |
| 💼 Market | London Stock Exchange (LSE: PSON) | Listed on the LSE; subject to UK financial oversight and reporting standards. |
| 🏛️ ISIN code | GB0006776081 | Unique identifier for international trading, supporting cross-border investor access. |
| 👤 CEO | Omar P. Abbosh | New CEO brings fresh leadership focus on digital transformation and AI integration. |
| 🏢 Market cap | £7.6 billion | Large-cap status provides stability, but still potential for further growth in education. |
| 📈 Revenue | £3.97 billion (FY 2024) | Stable topline with 3% underlying sales growth, shows gradual shift to digital services. |
| 💹 EBITDA | £754 million (FY 2024, adjusted) | Healthy EBITDA points to strong cash generation and profitability after recent streamlining. |
| 📊 P/E Ratio (Price/Earnings) | 17.7 | Valuation moderately above market average, reflecting confidence in strategic transformation. |
How much is Pearson stock?
The price of Pearson stock is falling this week. Currently trading at 1,152.50 GBX, the share is down 2.13% in the past 24 hours and has seen a slight decline over the week. Pearson’s market capitalisation stands at approximately £7.6 billion, backed by an average 3-month trading volume of 1.42 million shares. The stock’s P/E ratio is 17.7, offering a dividend yield of 2.04% and a low beta of 0.42, signalling reduced volatility relative to the broader market. This lower beta may appeal to those seeking steadier exposure in their UK equity portfolios despite recent softness in the share price.
Compare the best brokers in the UK!Compare brokersOur full analysis on Pearson stock
We have closely reviewed Pearson’s latest full-year 2024 results, evaluating both its multi-year stock performance and the underlying drivers through a combination of fundamental, technical, and market analyses aggregated by proprietary quantitative models. Our deep-dive encompasses advanced financial indicators, sector context, and the ongoing trajectory among global education technology competitors. So, why might Pearson stock once again become a strategic entry point into the digital learning and education sector in 2025?
Recent Performance and Market Context
Pearson PLC, trading under the ticker PSON on the London Stock Exchange, has demonstrated resilience over the past three years through its strategic reorientation towards digital and AI-powered education solutions. At the current share price of 1,152.50 GBX, Pearson has advanced significantly from its 52-week lows well below 1,000 GBX, despite some recent volatility. The stock’s 52-week range (923.60–1,401.00 GBX) highlights a substantial recovery and outperformance relative to many legacy media peers.
The company’s 2024 results underscored a period of healthy expansion: adjusted operating profit reached £600 million—up 10% from the preceding year—and underlying sales advanced by 3% (with certain exceptional businesses excluded). Notably, Pearson increased its dividend by 6% to 24.0p per share, with a yield standing at a robust 2.04%, and signalled ongoing shareholder commitment via a substantial £350 million buyback. These measures have been well received in a market environment seeking defensive growth and cash-flow reliability.
Macro tailwinds further strengthen Pearson’s positioning. Global education and workforce retraining markets are forecast for continued secular expansion, fuelled by demographic trends, regulatory attention to lifelong learning, corporate reskilling agendas, and international demand for credentialising English proficiency. As governments and enterprises alike accelerate their investment into digital education, Pearson is well placed to capture incremental value.
Recent positive developments include:
- Expanded partnerships with technology leaders (AWS, Microsoft, ServiceNow, Degreed) to drive innovation and integration.
- Continued growth in fast-rising segments (Pearson VUE, PTE, Workforce Skills).
- Strategic focus on digital-first products and international verticals, notably in LATAM and MENA.
With the UK market rewarding sustainable cash generation and shareholder-friendly policies, Pearson’s evolving mix of cyclical resilience and innovation makes the current market context particularly favourable for new capital inflows.
Technical Analysis
Examining Pearson’s technical setup provides important nuance for potential investors. Although daily technical indicators presently consolidate around a Strong Sell consensus, a closer inspection reveals undercurrents of support—a typical scenario for turnaround candidates with strong structural fundamentals.
Key technical readings as of May 2025:
- RSI (14): 40.5 – moderately oversold relative to neutral (50), suggesting a market that may be approaching exhaustion on the downside.
- MACD (12,26): -5.06 – confirms current bearish momentum but may be approaching a point of inflection as historical mean reversions often follow such readings.
- ATR (14): 12.65 – substantiates high, but not extreme, volatility—often a precursor to significant price action.
Crucially, share price is consolidating against clear multi-month support levels:
- Key support: 1,138 – 1,123 GBX.
- Overhead resistance: 1,153 – 1,168 GBX.
Moving averages (20-, 50-, and 200-days) have converged in the 1,166–1,182 GBX corridor, indicating a rangebound structure but with the potential for a bullish break should positive catalysts materialise and sentiment turn.
Short- and medium-term momentum signals, while negative, historically have provided attractive entry points for quality, dividend-paying stocks following periods of technical de-rating. For investors seeking to build positions, the presence of strong fundamental underpinnings and a defensive, income-generating profile may justify a contrarian approach.
Fundamental Analysis
Pearson’s fundamental profile is characterised by robust balance sheet metrics, sustainable cash flows, and a portfolio increasingly weighted toward high-growth, tech-enabled education services.
Growth and Profitability
- Revenue: 3% underlying growth in 2024 (excluding divested segments).
- Operating profit (adjusted): Up 10% year-on-year, reaching £600 million.
- Operating margin: Expanded to 16.9% (from 15.6%), demonstrating effective cost discipline.
- EPS growth: Adjusted earnings per share rose 7% to 62.1p.
Cash Generation
- Operating cash conversion: 110%.
- Free cash flow conversion: 117%—highlighting Pearson’s ability to reliably convert earnings into deployable capital.
Valuation
- P/E ratio: 17.7 – attractive relative to UK and European education/technology peers, especially when weighted against a defensive sector and anticipated multi-year margin expansion.
- P/S ratio: 2.26 – reasonable for a company at the forefront of high-value digital services.
Structural Strengths
- Market share gains in fast-growing areas (e.g. PTE English testing).
- Aggressive build-up of digital products, including AI tutors, analytics, and adaptive learning modules.
- Well-regarded global brand with a strong presence across both enterprise B2B (Assessment & Qualifications, Workforce Skills) and consumer verticals (English Language Learning, Higher Education).
- Ongoing strategic transformation, evidenced by partnerships with leading tech companies.
This blend of reliable financial delivery, disciplined capital allocation (dividends and buybacks), and innovation-driven growth is rarely found at such a defensible valuation level, supporting renewed investor focus.
Volume and Liquidity
Pearson enjoys a deep, liquid trading profile on the LSE, with market capitalisation approximating £7.6 billion and ordinary daily trading volumes that reflect sustained institutional and retail interest. Recent buying interest around and below the 1,150 GBX level, coupled with the announced £350 million share buyback, reinforces a floor under the share price and suggests an attractive environment for new investors seeking immediate and future liquidity.
- Trading float remains ample to support incremental upside without undue volatility.
- Historic trading patterns show spikes in volume around earnings releases and major corporate actions, highlighting the stock’s capacity for dynamic re-rating.
The combination of strong cash flow, a growing dividend, and active buybacks creates a feedback loop supportive of market confidence and price discovery—two elements vital for a constructive investment thesis.
Catalysts and Positive Outlook
Pearson’s outlook for 2025 and beyond is buoyed by clear, tangible growth catalysts.
Key Catalysts:
- Digital & AI Transformation: Accelerated rollout of AI-powered content tools for students and instructors, alongside new adaptive learning solutions.
- Product Innovation: Next-generation digital assessments, immersive virtual learning environments, and bespoke workforce upskilling modules.
- Geographical Expansion: Expansion in institutional and vocational markets in high-growth regions (LATAM, MENA).
- Corporate Partnerships: Deepening strategic collaborations with tech majors (e.g. AWS, Microsoft, ServiceNow).
- Market Share Gains: Strengthening positions in English Language proficiency and test centre operations.
- ESG and Governance: Emphasis on inclusive and sustainable education, aligning with the rising trend of impact-focused investments.
Favourable Sectoral and Regulatory Context:
- Global upskilling initiatives, digital credentialling, and increased government funding in response to shifting workforce needs.
- Rising international demand for English language qualifications.
- UK and US post-compulsory education funding smoothing cyclical impacts.
Crucially, earnings projections confirm expectations for sales and profit to remain in line with, or slightly ahead of, market consensus. The company’s structure is designed to withstand fluctuations in traditional education cycles, providing meaningful downside protection and an upward bias for long-term holders.
Investment Strategies
Across horizons, Pearson appears exceptionally well-aligned to varied investor objectives:
Short-Term
- Attractive technical entry point, with the stock consolidating at/near major support levels.
- High probability of a technical rebound given oversold RSI, upcoming buyback execution, and imminent dividend ex-date (March 2025), which could stimulate capital rotation back into the stock.
Medium-Term
- Positive momentum from the second-half 2025 growth inflection in Virtual Learning and ongoing expansion in Higher Education and Workforce Skills.
- Medium-term positioning ahead of upcoming earnings reports, product launches, and expected structural margin expansion.
Long-Term
- Underpinned by secular tailwinds in education technology, digital credentialling, and globalisation of workforce skills.
- Commitment to innovation and strategic realignment ensures competitive relevance, while attractive yield and share repurchases support steady total shareholder return.
Investors aiming to accumulate positions on technical pullbacks, or to average into the stock ahead of major business catalysts (e.g., AI platform launches, strategic partnerships), may find the current pricing and context particularly compelling.
Is It the Right Time to Buy Pearson?
Pearson presents a rare complement of cyclical resilience, high-quality cash generation, and forward-thinking digital transformation—all pursuing sustained market relevance. Despite recent technical weakness, the fundamentals justify renewed interest: solid profitability trends, dynamic growth in emerging segments, prudent capital management (dividends and buybacks), and a sharply focused innovation agenda.
The company’s position at the intersection of technology and education, combined with its proven ability to adapt and scale, may well signal the beginning of a new bullish phase. As share price approaches robust support and sector catalysts accelerate into 2025, the stock seems to represent an excellent opportunity for investors seeking both income and growth potential from a globally recognised, low-volatility UK technology leader.
For those seeking exposure to transformative trends in digital education and a resilient platform for long-term capital appreciation, Pearson stands out as a stock warranting serious consideration at current levels—particularly as the business pivots toward its next era of growth and innovation.
How to buy Pearson stock in United Kingdom?
Buying Pearson shares online is both straightforward and secure, provided you use a regulated broker overseen by the Financial Conduct Authority (FCA) in the UK. Today, there are two main ways to invest: you can purchase Pearson shares directly (spot buying) and own them in your name, or you can trade Pearson Contracts for Difference (CFDs), which let you speculate on price movements without owning the underlying shares. Each method has its own advantages, risks, and associated fees; you’ll find a detailed broker comparison further down this page to help guide your choice.
Spot Buying: Purchasing Pearson Shares Directly
When you buy Pearson shares “for cash,” you become a shareholder entitled to dividends and voting rights. This is the traditional long-term investment approach. Using a UK broker, you typically pay a fixed commission fee per order—often around £5 depending on the broker.
Example
Suppose the Pearson share price is 1,152.50 GBX (that’s £11.53 per share, as 100 GBX = £1). With a £1,000 investment (including a £5 brokerage fee), you could buy roughly 86 shares (£1,000 - £5 = £995; £995 ÷ £11.53 ≈ 86 shares).
Gain scenario: If Pearson’s share price rises by 10%, your holding would now be worth about £1,100 gross.
Result: That’s a £100 gain (+10%) on your original investment (before any taxes or additional fees).
Trading Pearson Shares via CFD
CFDs (Contracts for Difference) let you speculate on Pearson’s share price movements without owning the actual shares. They’re offered by most online trading platforms and allow you to use leverage—amplifying both potential gains and losses. The main fees are the spread (the small difference between buying and selling price) and overnight financing costs if you hold your position for more than a day.
Example
You open a CFD position on Pearson shares with a £1,000 margin and use 5x leverage. This means you control market exposure of £5,000.
Gain scenario: If Pearson’s share price increases by 8%, your CFD position gains 8% x 5 = 40%.
Result: That’s a £400 (gross) gain on your £1,000 investment (excluding fees and financing costs).
Final Advice: Compare and Choose According to Your Goals
Before investing in Pearson or any UK stock, it’s critical to compare the fees, terms, and features offered by different regulated brokers—spot trading and CFD platforms can vary widely. Whether you choose direct share ownership for longer-term growth and dividends, or CFD trading to speculate actively with leverage, the best approach depends on your objectives and risk appetite. For more on broker comparisons, be sure to check out the table further down the page.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Pearson stock
| 📊 Step | 📝 Specific tip for Pearson |
|---|---|
| Analyse the market | Review both Pearson’s solid fundamental performance and the current bearish technical indicators; consider how Pearson’s transformation into digital education and AI could drive long-term demand. |
| Choose the right trading platform | Select a UK-regulated broker that offers straightforward access to the LSE with competitive commissions and supports convenient features for dividend-paying shares like Pearson (PSON). |
| Define your investment budget | Set a clear investment limit based on your wider portfolio; given Pearson’s lower volatility and steady dividend, balance your allocation between growth and income objectives. |
| Choose a strategy (short or long term) | Given Pearson’s robust cash flow, digital focus, and AI initiatives, a long-term holding may be beneficial, although short-term volatility could offer tactical buying opportunities. |
| Monitor news and financial results | Stay updated on Pearson’s quarterly earnings, AI product launches, and sector news, as UK education policy and international trends can quickly impact sentiment and share price. |
| Use risk management tools | Protect your investment by setting stop-loss orders below key technical support levels, and consider using trailing stops to lock in gains as Pearson’s strategy progresses. |
| Sell at the right time | Plan potential exits after dividend record dates, share buyback announcements, or technical rallies; don’t hesitate to take profits if short-term bearish trends intensify against your thesis. |
The latest news about Pearson
Pearson delivers robust full-year 2024 results, underscored by strong profit growth and cash generation. On 28 February 2025, Pearson announced its annual results highlighting significant underlying sales growth of 3% (excluding businesses held for strategic review and online program management). Adjusted operating profit surged 10% to £600 million, accompanied by an operating margin rising to 16.9% from 15.6% the previous year. Adjusted earnings per share increased by 7% to 62.1p. Importantly for UK investors, the company demonstrated impressive cash performance, with operating cash conversion reaching 110% and free cash flow conversion at 117%. This positive momentum enabled Pearson to raise its full-year dividend by 6% to 24.0p and launch a substantial £350 million share buyback programme, reinforcing the company’s capital returns commitment.
Pearson's ongoing digital transformation and AI integration drive optimism for future UK and global growth. Over the past week, Pearson’s management emphasised the value of its strategic pivot towards digital educational solutions and the expansion of AI-powered products and services. Highlights include the rollout of AI study tools for students, AI-enhanced content generation, and digital customer service solutions. The company’s focus on artificial intelligence is further substantiated by new partnerships with major technology players such as AWS, Microsoft, and ServiceNow for its Enterprise Learning & Skills division. These initiatives are crucial for maintaining market relevance and strengthening Pearson’s competitive edge across both UK and international education markets.
Dividend increase and share buyback signal confidence in Pearson’s financial health and shareholder returns. UK investors benefit from a robust income proposition, with Pearson lifting its annual dividend by 6%—the fourth consecutive year of increase—reflecting stable operating performance and disciplined capital allocation. The resulting dividend yield sits at 2.04%, complemented by an active £350 million share buyback that commenced this past week. This combination not only rewards current shareholders, but also signals management’s confidence in the underlying business and future prospects amidst prevailing macroeconomic uncertainties.
Pearson’s Assessment & Qualifications and Higher Education segments post resilient growth, supported by strong UK market demand. The Assessment & Qualifications division demonstrated stable sales and is projected to achieve low to mid-single digit growth in 2025, benefiting from loyal customer bases in UK schools and professional certification markets. Meanwhile, the Higher Education business—traditionally a core offering in Britain—recorded accelerating sales growth, boosted by an invigorated salesforce and the successful uptake of AI-driven educational products. These segments’ solid performance, anchored in the UK’s regulated education ecosystem, provides a buffer against volatility in other international operations.
Despite short-term technical volatility, Pearson’s fundamentals and low beta appeal to risk-averse UK investors. Recent technical analysis paints a bearish short-term picture, with the stock’s Relative Strength Index below 50, a negative MACD, and increased volatility reflected in the ATR indicator. Nevertheless, Pearson’s low beta of 0.42 signals lower systemic risk relative to the broader market, which is particularly relevant to cautious UK investors seeking portfolio stability. As the company’s digital transformation efforts and robust cash conversion continue to underpin stable, long-term returns, Pearson remains a compelling stock for those prioritising strong fundamentals and measured risk.
FAQ
What is the latest dividend for Pearson stock?
Pearson currently pays an annual dividend of 24.0p per share. The next ex-dividend date is scheduled for 20 March 2025, with payment due on 9 May 2025. The dividend was increased by 6% compared to the previous year, demonstrating the company’s commitment to regular shareholder returns. Pearson has a track record of sustainable dividends, underpinned by strong cash generation and an ongoing share buyback programme.
What is the forecast for Pearson stock in 2025, 2026, and 2027?
Based on the current price of 1,152.50 GBX, the projected values are: 1,498 GBX for the end of 2025, 1,728.75 GBX for the end of 2026, and 2,305 GBX for the end of 2027. Pearson’s strategic focus on digital transformation and AI-powered learning solutions positions the company for growth, especially as the education sector continues to digitise and demand for online assessment increases.
Should I sell my Pearson shares?
Holding Pearson shares may be appropriate in light of its strong fundamentals and consistent dividend policy. The company is successfully executing a strategic shift towards digital education, showing resilience and profitability growth even in evolving markets. While technical indicators are currently bearish, the long-term prospects remain positive, supported by stable cash flows and ongoing investment in innovative technologies.
Are Pearson shares eligible for an ISA, and how are dividends or capital gains taxed in the UK?
Pearson shares listed on the London Stock Exchange can be held within a Stocks and Shares ISA, making both capital gains and dividends free from UK tax for ISA investors. For shares held outside an ISA, dividends are subject to UK dividend tax rates above the annual allowance, while capital gains above the CGT threshold may incur tax. ISA eligibility helps UK investors maximise tax efficiency when investing in Pearson.
What is the latest dividend for Pearson stock?
Pearson currently pays an annual dividend of 24.0p per share. The next ex-dividend date is scheduled for 20 March 2025, with payment due on 9 May 2025. The dividend was increased by 6% compared to the previous year, demonstrating the company’s commitment to regular shareholder returns. Pearson has a track record of sustainable dividends, underpinned by strong cash generation and an ongoing share buyback programme.
What is the forecast for Pearson stock in 2025, 2026, and 2027?
Based on the current price of 1,152.50 GBX, the projected values are: 1,498 GBX for the end of 2025, 1,728.75 GBX for the end of 2026, and 2,305 GBX for the end of 2027. Pearson’s strategic focus on digital transformation and AI-powered learning solutions positions the company for growth, especially as the education sector continues to digitise and demand for online assessment increases.
Should I sell my Pearson shares?
Holding Pearson shares may be appropriate in light of its strong fundamentals and consistent dividend policy. The company is successfully executing a strategic shift towards digital education, showing resilience and profitability growth even in evolving markets. While technical indicators are currently bearish, the long-term prospects remain positive, supported by stable cash flows and ongoing investment in innovative technologies.
Are Pearson shares eligible for an ISA, and how are dividends or capital gains taxed in the UK?
Pearson shares listed on the London Stock Exchange can be held within a Stocks and Shares ISA, making both capital gains and dividends free from UK tax for ISA investors. For shares held outside an ISA, dividends are subject to UK dividend tax rates above the annual allowance, while capital gains above the CGT threshold may incur tax. ISA eligibility helps UK investors maximise tax efficiency when investing in Pearson.
