Pearson Reports 4% Q3 Sales Growth, Expects Strong Q4 Finish

Pearson reported 4% underlying sales growth in Q3, bringing nine-month growth to 2%. The company expects stronger Q4 sales due to positive trends across business units. Pearson is on track to meet its 2025 market expectations, with medium-term goals of mid-single digit CAGR, margin improvement, and 90-100% free cash conversion.

London (Reuters) - British education company Pearson reported a 4% underlying sales growth in the third quarter, accelerating from a 2% increase in the first half of the year. This growth was driven by a 13% rise in virtual learning enrollments for the 2025/26 academic year, according to Global Banking & Finance. The company's Chief Executive, Omar Abbosh, noted that the performance sets the company up for a "strong Q4", Global Banking & Finance reported.

Abbosh highlighted the strength in virtual learning, assessment, and qualifications, as well as a return to growth in English language learning, despite initial concerns about the Pearson Test of English (PTE) due to global migration policies, Global Banking & Finance reported. The PTE performed well, surpassing expectations, the report added.

Shares in Pearson rose by 3.6% following the announcement, which was in line with market expectations for the year. Analysts forecast the company to report underlying sales growth of 4% and an adjusted operating profit of approximately £606 million ($813 million) for the year, according to Global Banking & Finance. The company is also on track to meet its 2025 market expectations with medium-term goals of mid-single digit CAGR, margin improvement, and 90-100% free cash conversion, according to Seeking Alpha.

Pearson's Q3 results indicate a positive trajectory, with the company well-positioned to achieve its financial targets for the year and beyond.