Pearson plans to reorganize its education business into four units from Jan. 1, 2027, and estimates one-time costs of about £50 million across fiscal 2026 and 2027 as it reported faster revenue growth and refined its 2026 profit outlook.
In its unaudited trading update dated Oct. 22, Pearson said the new structure will comprise US K12, US Higher Education, UK & International Education, and Enterprise. The company said grouping operations this way would bring them closer to customer groups, clarify responsibility for performance and help investors assess its growth drivers.
Pearson estimates one-time charges of about £50 million over fiscal 2026 and 2027. It expects around half to be noncash, will exclude the charges from adjusted operating profit and plans to use resulting savings to support growth initiatives.
Underlying group revenue, which excludes currency movements and portfolio changes, was 5% higher in the nine months through Sept. 30 than a year earlier. The increase reached 6% in the third quarter, and Pearson said the nine-month result met expectations.
Virtual Learning led the nine-month segment gains, rising 17%; fall-semester enrollment for the 2026/27 academic year was up 8%. Assessment & Qualifications grew 4%, which Pearson linked to new contracts and demand for AI skills verification. Enterprise Learning & Skills rose 7%, while Higher Education gained 2%. English Language Learning fell 4%; Pearson cited a strong prior-year comparison for its Pearson Test of English and difficult market conditions.
The company kept its 2026 expectations for mid-single-digit underlying revenue growth and free cash flow conversion of 90%-100%. It narrowed its adjusted operating profit range to £650 million-£675 million, from £640 million-£685 million, based on a year-end 2025 exchange-rate assumption of £1 to $1.35. EconoTimes previously covered Pearson’s profit-range revision.
Chief Executive Omar Abbosh said the quarter’s growth put Pearson “on track to deliver our 2026 guidance.” The company said it completed its acquisition of assessment technology provider ITS and agreed to buy Workera, an enterprise assessment and skills-verification company. Pearson expects that deal to close before year-end 2026.
Pearson scheduled an online Virtual Schools Investor Seminar for Dec. 11 and plans to release its 2026 preliminary results on Feb. 25, 2027.
