Pearson reported accelerating sales growth in the third quarter as the education group’s ongoing pivot towards digital learning and enterprise partnerships began to bear fruit, leaving it on track to meet full-year expectations.
Underlying group sales rose 4 per cent in the third quarter, lifting nine-month growth to 2 per cent, the company said in its unaudited trading update on Friday. The group forecast a stronger finish to the year, citing contract timing and continued expansion in digital and AI-powered learning tools.
Chief executive Omar Abbosh, in his first full year leading the London-listed company, said Pearson’s performance “reflected clear strategic execution, particularly in enterprise and AI innovation,” adding that the business was “well positioned for the opportunities ahead.”
“Pearson delivered another quarter of good progress, with accelerated sales growth in Q3 and robust performance across our businesses,” Abbosh said. “Our teams continue to execute against our strategic priorities, leading on the application of innovative technologies and growing our enterprise customer footprint.”
Digital learning and AI drive momentum
The update highlighted a growing contribution from AI-driven learning products, including the global rollout of AI-powered Study Prep tools and the launch of new AI Literacy Modules aimed at helping students navigate the rapidly changing technological landscape. Early evidence suggested these innovations were improving learning outcomes, particularly among Connections Academy students in the US.
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Virtual Learning was a standout performer, with sales up 17 per cent in Q3 and 4 per cent year to date, underpinned by a 13 per cent rise in 2025/26 academic enrolments. Pearson attributed the growth to targeted marketing, the introduction of a new enrolment portal, and increased adoption of its AI assessment tools, which halve the time teachers spend creating custom student assessments.
The division opened two new online schools and now operates 41 schools across 31 US states. Although marketing investments weighed on short-term margins, the group said these efforts would support profitable growth in 2026 and beyond.
Steady progress across divisions
Pearson’s Assessment & Qualifications division saw sales rise 4 per cent in Q3, bringing nine-month growth to 2 per cent. Pearson VUE, its professional testing arm, returned to growth following contract resumptions, while UK and international qualifications climbed 8 per cent, helped by higher volumes and pricing.
Higher Education sales increased 2 per cent over nine months, though fell 1 per cent in Q3 amid soft international demand. US Higher Education grew modestly, supported by a 19 per cent rise in Inclusive Access sales and sustained uptake of its Study Prep and AI-powered tools.
The English Language Learning segment returned to growth in Q3, rising 1 per cent, driven by strong demand for the Pearson Test of English ahead of test enhancements. However, sales for the year to date were down 1 per cent, with the company pointing to election-related immigration headwinds and cyclical academic patterns in Latin America.
Enterprise Learning & Skills sales grew 3 per cent over nine months, buoyed by new contracts with Cognizant and Deloitte and the deepening of its Salesforce certification partnership. The division expects high single-digit growth for the full year as these programmes scale.
Pearson outlook: confidence into 2026
Pearson reiterated that it expects group sales growth and adjusted operating profit in line with market expectations for 2025, and continues to target mid-single-digit compound annual growth and margin expansion beyond that.
The company forecast average free cash conversion of 90–100 per cent and a 40-basis-point annual margin improvement over the medium term, underscoring its confidence in the sustainability of its digital transformation.
With AI integration advancing across product lines and new enterprise partnerships taking shape, Pearson’s evolution from a traditional education publisher to a technology-enabled learning company appears firmly on course.
