**Summary of Pearson 2025 Preliminary Results**
**Financial Highlights and Performance**
**Revenue and Profit Growth**Pearson reported a 4% underlying sales growth to £3,577 million in 2025, with adjusted operating profit rising 6% to £614 million. Adjusted earnings per share increased by 4% to 64.5p.
**Cash Flow**Free cash flow grew by 8% to £527 million, with a strong cash conversion rate of 125%. Operating cash flow remained robust at £571 million.
**Dividends and Share Buybacks**A 5% increase in the full-year dividend to 25.2p per share was announced. A £350 million share buyback program is underway, reducing the share count by 5%.
**Strategic Progress**
**AI Integration**Significant advancements in scaling AI across products and services, improving learner outcomes and educator efficiency. AI is now a foundational capability within Pearson.
**Enterprise Strategy**Secured eight partnerships with industry leaders, including a strategic alliance with Salesforce, to expand into enterprise learning and skills development.
**Acquisitions**Acquired eDynamic Learning, a leading provider of digital Career and Technical Education, for £168 million, enhancing capabilities in early careers and workforce readiness.
**Segment Performance**
**Assessment & Qualifications**4% sales growth, driven by new contracts and digital expansion.
**Virtual Learning**8% sales growth, with strong enrolment increases and AI-driven enhancements.
**Higher Education**2% sales growth, supported by AI tools and Inclusive Access offerings.
**English Language Learning**1% sales growth, with PTE Express and institutional expansions.
**Enterprise Learning & Skills**6% sales growth, led by vocational qualifications and enterprise solutions.
**Outlook for 2026**
**Sales Growth**Mid-single digit underlying sales growth expected.
**Profit Guidance**Adjusted operating profit projected at £640–£685 million, with free cash flow conversion of 90–100%.
**Focus Areas**Continued AI integration, enterprise expansion, and core business strengthening.
**Leadership and Governance**
**Executive Change**: Sally JohnsonGroup CFOwill leave in 2026. Simon Robsoncurrently CFO at Skywill succeed herensuring a smooth transition.
**Conclusion**
Pearson demonstrated strong financial and strategic performance in 2025, driven by AI innovation, enterprise partnerships, and operational efficiency. The company is well-positioned for continued growth in 2026, with a focus on leveraging AI to meet the evolving needs of learners and enterprises.