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Pearson PLC (DE:PESA)
NYSE:PESA

Pearson (PESA) Price & Analysis

1 Followers

PESA Stock Chart & Stats

€14.00
€0.10(0.72%)
At close: 4:00 PM EDT
€14.00
€0.10(0.72%)

Bulls Say, Bears Say

Bulls Say
Free Cash Flow StrengthHigh free cash flow conversion (about 96% of net income in 2025) supports durable capital allocation: funds technology investment, buybacks, and debt servicing without relying on external financing. This underpins funding of digital transition and cushions execution risk over the medium term.
Sustainable Profitability & Margin TargetsRobust gross margins (~52%) and a healthy adjusted operating margin (17.2% in 2025), coupled with a stated multi‑year margin improvement plan (~40bps p.a.), indicate structural operating leverage. Digital product mix and cost efficiency programs make margins more resilient amid top‑line variability.
Enterprise Partnerships & Product InnovationLarge strategic partnerships and a growing enterprise backlog create multi‑year, contract‑backed revenue streams, diversifying exposure away from cyclical textbook sales. Combined with heavy AI/product investment, this strengthens recurring revenue potential and cross‑sell opportunities over the medium term.
Bears Say
Multi‑year Revenue DeclinesThree consecutive years of revenue decline indicate structural top‑line weakness that cost cuts alone may not offset. Sustained revenue erosion makes it harder to meet medium‑term sales CAGR targets, limits operating leverage upside, and raises reliance on one‑off gains or enterprise deals to restore growth.
Rising Leverage And Interest CostsNet debt growth and higher interest expense reduce financial flexibility. Increased leverage—partly after a £350m buyback—and rising interest costs can constrain investment in products and hiring, and amplify downside if revenue recovery lags or enterprise deal timing slips.
Execution & Recognition RiskSignificant execution risks persist: platform consolidation led to a one‑off £87m impairment, a material contract loss (New Jersey) hit A&Q near term, and enterprise deals face timing/signature uncertainty. These issues can delay cashflows and mute expected backlog conversion over multiple quarters.

Pearson News

PESA FAQ

What was Pearson PLC’s price range in the past 12 months?
Pearson PLC lowest stock price was €10.10 and its highest was €15.20 in the past 12 months.
    What is Pearson PLC’s market cap?
    Pearson PLC’s market cap is €9.14B.
      When is Pearson PLC’s upcoming earnings report date?
      Pearson PLC’s upcoming earnings report date is Jul 31, 2026 which is tomorrow.
        How were Pearson PLC’s earnings last quarter?
        Pearson PLC released its earnings results on Feb 27, 2026. The company reported €0.462 earnings per share for the quarter, beating the consensus estimate of €0.457 by €0.005.
          Is Pearson PLC overvalued?
          According to Wall Street analysts Pearson PLC’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Pearson PLC pay dividends?
            Pearson PLC does not currently pay dividends.
            What is Pearson PLC’s EPS estimate?
            Pearson PLC’s EPS estimate is 0.31.
              How many shares outstanding does Pearson PLC have?
              Pearson PLC has 598,496,030 shares outstanding.
                What happened to Pearson PLC’s price movement after its last earnings report?
                Pearson PLC reported an EPS of €0.462 in its last earnings report, beating expectations of €0.457. Following the earnings report the stock price went up 1.866%.
                  Which hedge fund is a major shareholder of Pearson PLC?
                  Currently, no hedge funds are holding shares in DE:PESA
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Pearson PLC

                    Pearson plc is a prominent international provider of educational content, evaluations, and related services. Its operations span the globe, with a significant presence in regions such as the United Kingdom, the United States, Canada, the Asia Pacific, and various other European countries. The company structures its diverse offerings across five main divisions: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. The Assessment & Qualifications segment oversees a wide array of examinations and certifications. This includes professional and vocational testing through Pearson VUE, standardized student assessments for the US and UK (such as GCSEs and A-levels), clinical assessments, and various international academic qualifications. Virtual Learning is dedicated to digital education, delivering virtual school environments and managing online learning programs for institutions. The English Language Learning division focuses on English language instruction, offering the Pearson Test of English, institutional courseware, and online English learning solutions. The Higher Education segment is responsible for developing and distributing educational materials and resources specifically for post-secondary institutions across the US, Canada, and other international markets. Finally, Workforce Skills aims to equip individuals with career-ready competencies. Its portfolio features vocational qualifications like BTEC and GED, talent assessment tools such as TalentLens, workforce intelligence provided by Faethm, direct education through Pearson College, and apprenticeship programs. Founded in 1844, Pearson plc maintains its corporate headquarters in London, United Kingdom.

                    Pearson (PESA) Earnings & Revenues

                    PESA Stock 12 Month Forecast

                    Average Price Target

                    €15.30
                    ▲(9.28% Upside)
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