Pearson (PSON) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue grew 4% year-over-year, with all business units performing in line with expectations and strong execution.

• Virtual Learning saw strong growth, up 21%, while Assessment & Qualifications is expected to return to growth from Q2.

• Strategic progress includes expansion in AI learning, new professional certifications, and partnerships with major tech firms.

• Leadership transition underway as CFO Sally Johnson prepares to hand over to Simon Robson.

• £350m share buyback programme is progressing, with £219m repurchased by March 2026.

Financial highlights

• Group underlying sales up 4% year-over-year in Q1 2026.

• Virtual Learning revenue up 21% year-over-year, driven by strong enrollment growth.

• Assessment & Qualifications declined 1% as expected, with growth anticipated in Q2.

• Higher Education grew 2%, with expectations for higher growth in 2026 versus 2025.

• English Language Learning up 2%, led by institutional business in China and enterprise offerings.

Outlook and guidance

• Full-year group growth guidance for 2026 reaffirmed, with confidence in medium-term targets and mid-single digit underlying sales growth.

• Assessment & Qualifications expected to return to growth in Q2, supported by new contracts and exam delivery in the UK.

• Virtual Learning and Higher Education projected to grow more than 2025, driven by enrolment and product innovation.

• Margin improvement targeted at 40 basis points per annum over the medium term.

• PTE expected to return to growth in 2026 despite market pressures.