Pearson Reports Accelerated Growth on Strategic Acquisitions

Pearson, the global education company, reported accelerated growth in its third quarter, putting it on track to meet its 2026 financial guidance. The company’s underlying group revenue increased by 5% for the nine-month period, with growth accelerating to 6% in the third quarter, in line with expectations.

Pearson announced the acquisition of ITS, a trusted assessment technology provider, to strengthen its core assessment and verification capabilities. The company also acquired Workera, a pioneer in AI-driven enterprise assessment and skills verification, to bolster its enterprise offering through an AI-native skills intelligence platform.

The company has restructured its business into four customer-focused business units, effective from January 1, 2027. These units are designed to sharpen accountability, improve agility, and drive growth. The re-segmentation is expected to result in one-off reorganisation costs of approximately £50 million across fiscal years 2026 and 2027, which will be excluded from adjusted operating profit.

For the nine-month period ending September 30, 2026, Pearson’s underlying group revenue increased by 5%, with growth accelerating to 6% in the third quarter. The Assessment & Qualifications segment saw a 4% increase in revenue for the nine-month period, with growth accelerating to 10% in the third quarter, driven by new contracts and strong demand for the verification of AI skills. Virtual Learning revenue increased by 17% for the nine-month period, with growth of 13% in the third quarter, driven by 2026/27 academic year enrolments up 8% for the Fall semester.

Higher Education revenue increased by 2% in both the nine-month period and the third quarter, with Q3 revenue growth driven by a solid performance in core US Courseware, partially offset by declines in K12, reflecting delayed adoptions and funding pressures. English Language Learning revenue declined by 4% for the nine-month period, with Q3 revenue down 5% impacted by a strong comparator in Pearson Test of English (PTE) given test enhancements implemented last year, alongside continued challenging underlying market conditions.

Enterprise Learning & Skills revenue increased by 7% for the nine-month period and 6% in the third quarter, driven by a solid performance in Vocational Qualifications and growth in Enterprise Solutions, supported by the continued monetisation of strategic partnerships.

Pearson is well positioned to deliver a mid-single-digit underlying revenue growth CAGR over the medium term, with sustained margin improvement that will equate to an average increase of 40 basis points per annum and strong free cash flow conversion, in the region of 90% to 100%, on average, across the period.

Pearson’s Virtual Learning segment saw a 17% increase in revenue for the nine-month period, with Q3 up 13%, driven by strong enrolment growth, funding upside, and favourable mix. The company successfully opened five new schools for the 2026/27 academic year, bringing its total network to 46 schools across 32 states, including its first school in North Carolina, where early demand has been encouraging.

For the full year, Pearson expects mid-single-digit revenue growth, driven by new contracts, products, and pricing. The company will release its 2026 preliminary results on February 25, 2027, and will hold an investor seminar on December 11, 2026.