#London #United Kingdom #sales growth #AI Learning #Pearson

Pearson's Trading Update for the First Three Quarters of 2025

Pearson, a global leader in education and learning, recently published its trading update for the first three quarters of 2025, revealing meaningful progress and future growth potential. The report, which was shared on October 17, highlights a notable acceleration in underlying group sales, rising by 4% in the third quarter. Despite a challenging market landscape, the company's overall growth for the first nine months stood at an admirable 2%.

Key Highlights of the Update

The latest figures reflect a range of strategic initiatives that Pearsons is executing to foster growth in its various business segments. Key components include:

1. Sales Dynamics: A significant growth of 17% in Virtual Learning for Q3, buoyed by an impressive 13% increase in enrollments for the 2025/26 academic year, suggesting robust performance heading into the future.
2. AI Innovations: Pearson is making strides in integrating artificial intelligence into its business model, launching AI Literacy Modules and expanding its AI-driven study tools that have shown better learning outcomes.
3. Enterprise Partnerships: The firm has built strong momentum in enterprise learning by forming strategic alliances with major players like Cognizant and Deloitte and starting a partnership with Salesforce.

Business Breakdown

• - Assessment & Qualifications: This segment saw a 4% growth in Q3. Pearson VUE also returned to growth thanks to new contract launches, despite seasonal pressures.
• - Higher Education: While experiencing a slight decline of 1% in Q3 due to challenges in international markets, U.S. higher education saw a modest growth of 2% during the same period. This reflects the impact of Pearson's extensive course materials and study aids.
• - English Language Learning: The sales returned to growth with a 1% increase in Q3, driven by enhanced performances in the Pearson Test of English (PTE).
• - Enterprise Learning: Skills sales increased by 3%, showing sustained momentum and new contract captures, positioning them for high single-digit growth going forward.

Strategic Investments and Future Outlook

Omar Abbosh, Pearson's Chief Executive, expressed optimism regarding the company's position for future prospects, citing the execution of their strategic priorities and innovative technology applications. As the company prepares for Q4 and beyond, they anticipate stronger growth driven by new and renewed contracts, particularly in their enterprise learning verticals. The firm aims for continued enhancement of learning through AI technologies designed to streamline educational processes and improve individual learning experiences.

Market Expectations and Projections

Looking ahead, Pearson is poised to meet or exceed market expectations for 2025 with anticipated sales growth and adjusted operating profits aligning with current forecasts. Their target is to maintain a consistent upward trajectory with anticipated mid-single-digit growth in underlying sales in subsequent years, supported by long-term investments in digital and AI-driven offerings that capture a larger market share as educational methodologies evolve.

Overall, Pearson's Q3 trading update encapsulates a determined and forward-looking approach that sets the stage for further advancements in education and learning technology.