Pearson (PSON) Q3 2026 TU earnings summary

Executive summary

• Underlying revenue grew 5% in 9M 2026 and accelerated to 6% in Q3, in line with expectations; FY26 guidance remains on track.

• Strategic acquisitions and a four-unit customer-led structure are intended to strengthen growth, assessment capabilities and accountability.

Financial highlights

• Adjusted operating profit guidance narrowed to £650m–£675m at year-end 2025 FX rates (£1:$1.35); the midpoint is unchanged.

• Free cash flow conversion guidance remains 90%–100%; adjusted net finance costs are expected to be ~£80m.

• Nine-month underlying revenue growth was 5%, with Q3 growth at 6%.

Outlook and guidance

• FY26 underlying revenue growth and medium-term CAGR are expected to be mid-single digit.

• Medium-term margin improvement target is an average 40 bps per year, with average free cash flow conversion of 90%–100%.

• Full-year expectations include Virtual Learning growth above 2025, Higher Education growth and low-to-mid-single-digit Assessment & Qualifications growth.

• Institutional English Language Learning revenue is expected to grow while PTE declines; Enterprise Learning & Skills growth is expected from vocational qualifications and enterprise accounts.