Pearson narrowed its 2026 adjusted operating profit range after third-quarter revenue growth accelerated, as Virtual Learning and Assessment & Qualifications advanced while English Language Learning declined.
Underlying revenue increased 5% in the nine months ended Sept. 30, 2026, and 6% in the third quarter compared with the same periods a year earlier. Pearson’s measure excludes currency movements and changes to its business portfolio. The company set its profit outlook at £650 million to £675 million, down from £640 million to £685 million, using end-2025 exchange rates, including £1 to $1.35. It maintained its forecasts for mid-single-digit underlying revenue growth and free cash flow conversion of 90% to 100%.
Third-quarter revenue rose 13% in Virtual Learning, 10% in Assessment & Qualifications, 6% in Enterprise Learning & Skills and 2% in Higher Education. English Language Learning revenue fell 5%. For the first nine months, the respective growth rates were 17%, 4%, 7% and 2%, while English Language Learning was down 4%.
Pearson attributed Assessment & Qualifications’ growth to new contracts and demand for verification of AI skills. Virtual Learning enrolments for the 2026/27 academic year increased 8% during the Fall semester. The company linked English Language Learning’s decline in part to lower Pearson Test of English revenue and a stronger comparison with the prior year.
Pearson completed its acquisition of ITS, an assessment technology provider, and agreed to buy Workera, whose platform assesses workforce skills using AI, psychometrics and adaptive tests. Pearson expects the Workera deal to close before the end of 2026, subject to closing conditions.
From Jan. 1, 2027, Pearson plans to organize its operations into US K12, US Higher Education, UK & International Education, and Enterprise units. It expects about £50 million in reorganization costs across fiscal 2026 and 2027, around half of which will be non-cash. The company said the costs will be excluded from adjusted operating profit and savings will go toward growth capabilities. Pearson’s online Virtual Schools Investor Seminar is scheduled for Dec. 11, followed by its 2026 preliminary results on Feb. 25, 2027.
