Pearson stock analysis
Pearson (PESA) Stock Price & Analysis
PESA Stock Chart & Stats
- Day’s Range
- EUR 15.60 - EUR 15.60
- 52-Week Range
- EUR 10.10 - EUR 16.30
- Previous Close
- EUR 15.70
- Volume
- N/A
- Average Volume (3M)
- 0
- Market Cap
- EUR 9.29B
- Enterprise Value
- EUR 11.79B
- Total Cash (Recent Filing)
- EUR 336.95M
- Total Debt (Recent Filing)
- EUR 1.75B
- Price to Earnings (P/E)
- 25.1
- Beta
- 0.27
- Next Earnings
- Feb 25, 2027 (Est.)
- EPS Estimate
- 0.54
- Next Dividend Ex-Date
- N/A
- Dividend Yield
- 1.90%
Bulls Say, Bears Say
Bulls Say
Strong Cash Generation And Margins
High free-cash-flow conversion and solid operating profitability indicate good earnings quality and provide resources for product investment, debt service, and shareholder returns. Improved free cash flow also supports resilience as Pearson continues shifting toward digital and recurring education services.
Virtual Learning Momentum
Rapid Virtual Learning growth, strong enrolment trends, and complete renewal of long-term contracts point to durable customer demand and improving visibility. Expansion in this digital activity can support recurring revenue, operating leverage, and a more scalable mix over coming quarters.
Enterprise And AI Product Growth
Growth in Enterprise Learning & Skills and commercial launches in professional assessment and AI certification broaden Pearson’s relevance in workforce development. These offerings can deepen institutional relationships and create additional long-term demand as employers value verified digital skills.
Bears Say
Persistent Top-line Weakness
Repeated annual revenue declines and recent net-margin compression show that Pearson’s strong profitability has not yet translated into consistent top-line expansion. Continued weakness could limit operating leverage, reduce reinvestment capacity, and make medium-term growth targets harder to sustain.
Higher Leverage Reduces Flexibility
Rising leverage reduces balance-sheet flexibility even though debt remains manageable. Higher net debt can constrain future acquisitions, investment, and shareholder distributions, while increasing the importance of sustained cash conversion and disciplined capital allocation.
ELL And Assessment Execution Headwinds
English Language Learning weakness reflects softer international mobility, tighter migration policies, and geopolitical disruption, while assessment execution issues have added costs. These pressures may persist across the next several quarters and offset growth from stronger digital businesses.
Pearson News
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Pearson Stock Smart Score
Company Description
Pearson
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.
- Sector
- Communicationservices
- Industry
- Publishing
- CEO
- Omar Paul Abbosh
- Employees
- 17,116
- Website
- plc.pearson.com
- Address
- 80 Strand, London, GL, WC2R 0RL, GB
Pearson (PESA) Earnings & Revenues
PESA Company Deck
PESA Earnings Call
Earnings Call SentimentPositive
The call presented a broadly positive operational and financial picture: group revenue, profit, EPS and free cash flow showed clear improvement, Virtual Learning and Enterprise businesses are delivering strong growth, and management reiterated full-year guidance and medium-term margin targets. Key strategic developments—AI certification contract, product innovation and digital/operational simplification—support growth prospects. Offsetting these positives are headwinds in English Language Learning, delivery issues in the U.K. SATs cycle that incurred one-time costs, some margin pressure in Assessment & Qualifications due to contract mix, and increased net debt partly driven by buybacks and acquisitions. On balance, the positive financial performance, cash generation and strategic momentum outweigh the challenges.
View all DE:PESA earnings summariesPESA Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 11 | 6 | 5 |
| Technical Analysis | 2 | 6 | 2 |
| Moving Averages | 9 | 0 | 3 |
