22nd Oct 2026 09:49
(Alliance News) - Pearson PLC on Thursday said it was restructuring its business into four divisions as it reported revenue growth accelerated in the third quarter.
The London-based education materials publisher said underlying group revenue increased 5% for the nine-months ended September 30, with growth accelerating to 6% in the third quarter, in line with expectations.
Growth picked up from 4% reported in both the first and second quarters of the year so far.
As a result, the FTSE 100-listing said it is on track to deliver 2026 guidance of mid-single digit underlying revenue growth with its adjusted operating profit range of GBP650 million to GBP675 million narrowed from GBP640 million to GBP685 million before.
In 2025, Pearson reported revenue of GBP3.58 billion and an adjusted operating profit of GBP614 million.
By division, Pearson said Assessment & Qualifications revenue increased 4% 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 17% for the nine-month period, with growth of 13% in the quarter, while Higher Education revenue increased 2% in both the nine-month period and the quarter.
In US Higher Education, third quarter revenue growth was 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 4% for the nine-month period with third quarter revenue down 5% impacted by a strong comparator in Pearson Test of English given test enhancements implemented last year, alongside continued challenging underlying market conditions.
Enterprise Learning & Skills revenue increased 7% in the nine-month period and 6% in the quarter, driven by a solid performance in Vocational Qualifications and growth in Enterprise Solutions, supported by the continued monetisation of our strategic partnerships.
Effective from the start of 2027, Pearson said it is "simplifying" the business through the "creation of four larger, more balanced, customer-focused business units".
These are US K12, US Higher Education, UK & International Education and Enterprise.
UK & International Education will include the Qualifications and Learning & Assessment Services businesses. Enterprise will incorporate the Professional Assessments, Talent & Clinical Assessments and Workforce Skilling segments.
The changes will result in one-off reorganisation costs of around GBP50 million in total to be booked across financial 2026 and 2027, which will be excluded from adjusted operating profit.
Shares in Pearson were down 2.3% at 1,329.00 pence each in London on Thursday.
By Jeremy Cutler, Alliance News reporter
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