Pearson Q1 2026 Trading Update (Unaudited) USA - English USA - English
Continued execution drives good Q1 result. On track to deliver 2026 guidance.
LONDON, May 1, 2026 /PRNewswire/ --
Omar Abbosh, Pearson's Chief Executive, said:
"We have had an encouraging start to the year, with a good performance in line with our expectations and continued progress against our strategy. We are executing with discipline, advancing our core business and enterprise offerings, while applying innovative technologies to enhance learner experiences. We remain confident in the momentum we are seeing for 2026 and in our ability to deliver attractive growth for our shareholders."
Underlying Group sales growth of 4% in Q1 2026
On track to deliver 2026 guidance and medium term outlook unchanged
Strong financial position
Financial summary
Sales
Q1 2026
Underlying growth
Assessment & Qualifications
(1) %
Virtual Learning
21 %
Higher Education
2 %
English Language Learning
2 %
Enterprise Learning & Skills
8 %
Total
4 %
Throughout this announcement growth rates are stated on an underlying basis unless otherwise stated. Underlying growth rates exclude currency movements, and portfolio changes.
2026 guidance summary
Underlying Sales growth
Group
Mid-single digit growth.
Assessment & Qualifications
Low to mid-single digit growth, driven by new contracts, products and pricing. Returning to growth from Q2, supported by new business and recently awarded contracts.
Virtual Learning
Stronger growth than 2025, particularly in H1, driven by a full year of enrolment growth.
Higher Education
Will grow more than 2025, supported by continued product and platform innovation, pricing and Inclusive Access in our core US courseware business, with improvement in the K12 channel.
English Language Learning
Higher growth than 2025 driven by market share gains and pricing, with PTE returning to growth. Growth will again be Q4 weighted given the seasonality of the business.
Enterprise Learning & Skills
Growth to be driven by a solid performance in Vocational Qualifications and strategic account growth in Enterprise Solutions.
Group Profit
Adjusted Operating Profit
£640m-£685m at FX rates as at the end of 2025 (£:$ 1.35), which includes lower amortisation in 2026 following the 2025 product development impairment.
Interest
Adjusted net finance costs of c.£80m – includes associated costs of funding the £350m share buyback.
Tax rate
We expect the effective tax rate on adjusted profit before tax to be c.25%.
Cash flow
We expect a free cash flow conversion of 90-100%.
FX
Every 1c movement in £:$ rate equates to approximately £5m adjusted operating profit impact.
1The 2025 product development impairment relates to a £87m non-cash, one-off impairment of legacy product development assets arising from a strategic platform convergence. This convergence is expected to deliver ongoing operational improvements and results in a c.£15m per annum adjusted operating profit improvement, on average, over the next 6 years in Higher Education.
2Free cash flow conversion calculated as free cash flow divided by adjusted earnings.
Contacts
Investor Relations
Alex Shore
Steph Crinnegan
+44 (0) 7720 947 853
+44 (0) 7780 555 351
Brennan Matthews
+1 (332) 238-8785
Media
Edelman Smithfield
Pearson
Latika Shah
Laura Ewart
+44 (0) 7950 671 948
+44 (0) 7798 846 805
Conference call
We will hold a conference call to discuss Pearson's Q1 2026 Trading Update today at 09:00 (BST). Dial in details are outlined below:
United Kingdom: +44 20 3936 2999
United States: +1 855 979 6654
Access Code: 729911
Global Dial-In Numbers
About Pearson
At Pearson, our purpose is simple: to help people realise the life they imagine through learning. We believe that every learning opportunity is a chance for a personal breakthrough. That's why our Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world's lifelong learning company, serving customers with digital content, assessments, qualifications, and data. For us, learning isn't just what we do. It's who we are. Visit us at pearsonplc.com.
Notes
Forward looking statements: Except for the historical information contained herein, the matters discussed in this statement include forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated cost savings and synergies and the execution of Pearson's strategy, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in future. They are based on numerous assumptions regarding Pearson's present and future business strategies and the environment in which it will operate in the future. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including a number of factors outside Pearson's control. These include international, national and local conditions, as well as competition. They also include other risks detailed from time to time in Pearson's publicly-filed documents and you are advised to read, in particular, the risk factors set out in Pearson's latest annual report and accounts, which can be found on its website ( www.pearsonplc.com). Any forward-looking statements speak only as of the date they are made, and Pearson gives no undertaking to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on such forward-looking statements.
SOURCE Pearson