Pearson (LSE:PSON) shares surged, rising 5.1% to 1,136.25p after it reported Q1 underlying Group sales up 4% and said it is on track to deliver its 2026 guidance.
Virtual Learning grew 21% on enrolment momentum and earlier funding phasing, Assessment & Qualifications was down 1% as expected with strength in Pearson Professional Assessments and Clinical Assessment offset by PDRI headwinds and the previously disclosed loss of the New Jersey contract while US Student Assessment won a new statewide contract in Wyoming and is expected to return to growth from Q2.
Higher Education rose 2% with Inclusive Access up 19% and US digital subscriptions up 2%, English Language Learning increased 2% while Pearson Test of English weakened, and Enterprise Learning & Skills grew 8% helped by vocational qualifications revenue phasing and monetisation of strategic partnerships including Salesforce.
Pearson reiterated 2026 guidance of mid‑single‑digit underlying sales growth, adjusted operating profit of £640m–£685m at FX rates as at end‑2025 (£:$1.35) including the 2025 product development impairment, adjusted net finance costs of c.£80m, an effective tax rate of c.25% and expected free cash‑flow conversion of 90-100%.
The company said its £350m share buyback is progressing with £219m repurchased at an average price of 964p per share as at 31 March, it issued a £350m 10‑year EMTN bond in April and described its financial position as having low leverage and strong liquidity.
"We have had an encouraging start to the year and remain confident in the momentum we are seeing for 2026 and in our ability to deliver attractive growth for our shareholders," Omar Abbosh said.
