UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May
2026
PEARSON plc
(Exact
name of registrant as specified in its charter)
N/A
(Translation
of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address
of principal executive office)
Indicate
by check mark whether the Registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F
X
Form 40-F
Indicate
by check mark whether the Registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934
Yes
No X
Pearson Q1 2026 Trading Update (Unaudited)
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1st
May 2026
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Continued execution drives good Q1 result. On track to deliver 2026
guidance.
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Highlights
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Underlying
Group sales up 4% in Q1.
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All
business units performing in line with expectations; continued
strong performance in Virtual Learning with underlying sales up
21%, and Assessment & Qualifications expected to return to
growth from Q2.
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On
track to deliver 2026 full year guidance.
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Continued
progress against our 2026 priorities, including:
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o
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Advancing
core business and enterprise power metrics, with an Enterprise
strategic partnership with Salesforce and US Student Assessment
contract win in Wyoming (link
here).
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o
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Leading
with the application of innovative technologies, including the roll
out of Communication Coach - an AI-powered learning solution
integrated into Microsoft 365.
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o
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Expansion
of AI learning offerings through the launch of a Foundations of AI
course for teachers (link here)
and the first professional certification for Adobe Firefly
(link here), helping to upskill
learners and workers in the AI era.
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£350m
share buyback programme progressing well.
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Omar Abbosh, Pearson’s Chief Executive, said:
“We have had an encouraging start to the year, with a good
performance in line with our expectations and continued progress
against our strategy. We are executing with discipline, advancing
our core business and enterprise offerings, while applying
innovative technologies to enhance learner experiences. We remain
confident in the momentum we are seeing for 2026 and in our ability
to deliver attractive growth for our
shareholders.”
Underlying Group sales growth of 4% in Q1 2026
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●
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Assessment
& Qualifications sales were down 1%, as expected. Growth in
Pearson Professional Assessments was driven by continued momentum
from new contracts launched last year, partially offset by
headwinds in PDRI. Clinical Assessment grew due to the continued
traction of our products, particularly in International markets,
pricing, and digital product growth. US Student Assessment won a
new statewide assessment contract in Wyoming in the period, but
sales declined impacted by the previously disclosed loss of the New
Jersey contract. UK & International Qualifications declined
slightly due to delivery phasing, reversing in Q2.
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Virtual Learning sales grew 21%, reflecting strong enrolment
momentum within 2025/2026 academic year with enrolment growth
increasing to 15%, alongside funding upside that phased earlier
than last year, and favourable mix. Enrolment performance continues
to be supported by ongoing investment in marketing and strong
execution.
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Higher
Education sales were up 2%, driven by continued solid performance
in our core US Courseware business, partially offset by challenging
trading conditions in mature International markets. In the quarter,
there was growth of 19% in
Inclusive Access and 2% in US digital subscriptions.
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English
Language Learning sales increased 2%, driven by Institutional.
Pearson Test of English (PTE) declined slightly due to a continued
tough market backdrop.
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Enterprise
Learning & Skills sales were up 8%. Vocational Qualifications
grew well, in part benefitting from revenue phasing. Enterprise
Solutions grew strongly, driven by the monetisation of strategic
partnerships, including Salesforce.
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On track to deliver 2026 guidance and medium term outlook
unchanged
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●
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For 2026, we expect to deliver mid-single digit underlying sales
growth, adjusted operating profit of £640m-£685m at FX
rates as at the end of 2025 (£:$ 1.35), including the impact
of the 2025 product development impairment1, and free cash flow conversion2 of 90%-100%.
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Over the medium term, Pearson continues to be positioned to deliver
a mid-single digit underlying sales growth CAGR, sustained margin
improvement that will equate to an average increase of 40 basis
points per annum and strong free cash conversion, in the region of
90% to 100%, on average, across the period.
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Strong financial position
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●
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Pearson’s
financial position remains strong, with low leverage and strong
liquidity.
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Our
£350m share buyback programme is progressing well. As at
31st March
2026, £219m of shares had been repurchased at an average price
of 964p per share.
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●
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In
April 2026, we successfully issued a £350m 10-year bond under
our Euro Medium Term Note (EMTN) programme.
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Financial summary
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Sales
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Q1 2026
Underlying growth
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Assessment & Qualifications
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(1)%
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Virtual Learning
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21%
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Higher Education
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2%
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English Language Learning
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2%
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Enterprise Learning & Skills
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8%
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Total
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4%
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Throughout
this announcement growth rates are stated on an underlying basis
unless otherwise stated. Underlying growth rates exclude currency
movements, and portfolio changes
2026 guidance summary
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Underlying Sales growth
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Group
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Mid-single
digit growth.
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Assessment & Qualifications
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Low to mid-single digit growth, driven by new contracts, products
and pricing. Returning to growth from Q2, supported by new business
and recently awarded contracts.
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Virtual Learning
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Stronger growth than 2025, particularly in H1, driven by a full
year of enrolment growth.
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Higher Education
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Will grow more than 2025, supported by continued product and
platform innovation, pricing and Inclusive Access in our core US
courseware business, with improvement in the K12
channel.
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English Language Learning
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Higher growth than 2025 driven by market share gains and pricing,
with PTE returning to growth. Growth will again be Q4 weighted
given the seasonality of the business.
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Enterprise Learning & Skills
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Growth to be driven by a solid performance in Vocational
Qualifications and strategic account growth in Enterprise
Solutions.
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Group
Profit
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Adjusted Operating Profit
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£640m-£685m at FX rates as at the end of 2025 (£:$
1.35), which includes lower amortisation in 2026 following the 2025
product development impairment.
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Interest
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Adjusted net finance costs of c.£80m – includes
associated costs of funding the £350m share
buyback.
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Tax rate
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We expect the effective tax rate on adjusted profit before tax to
be c.25%.
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Cash
flow
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We expect a free cash flow conversion of 90-100%.
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FX
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Every 1c movement in £:$ rate equates to approximately
£5m adjusted operating profit impact.
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1The 2025 product development impairment relates to a
£87m non-cash, one-off impairment of legacy product
development assets arising from a strategic platform convergence.
This convergence is expected to deliver ongoing operational
improvements and results in a c.£15m per annum adjusted
operating profit improvement, on average, over the next 6 years in
Higher Education.
2Free cash flow conversion calculated as free cash flow
divided by adjusted earnings.
Contacts
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Investor Relations
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Alex
Shore
Steph
Crinnegan
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+44
(0) 7720 947 853
+44
(0) 7780 555 351
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Brennan
Matthews
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+1
(332) 238-8785
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Media
Edelman
Smithfield
Pearson
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Latika
Shah
Laura
Ewart
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+44
(0) 7950 671 948
+44
(0) 7798 846 805
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Conference call
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We will
hold a conference call to discuss Pearson’s Q1 2026 Trading
Update today at 09:00 (BST). Dial in details are outlined
below:
United Kingdom: +44 20 3936 2999
United States: +1 855 979 6654
Access Code: 729911
Global Dial-In Numbers
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About Pearson
At
Pearson, our purpose is simple: to help people realise the life
they imagine through learning. We believe that every learning
opportunity is a chance for a personal breakthrough. That’s
why our Pearson employees are committed to creating vibrant and
enriching learning experiences designed for real-life impact. We
are the world’s lifelong learning company, serving customers
with digital content, assessments, qualifications, and data. For
us, learning isn’t just what we do. It’s who we are.
Visit us at pearsonplc.com.
Notes
Forward
looking statements: Except for the historical information contained
herein, the matters discussed in this statement include
forward-looking statements. In particular, all statements that
express forecasts, expectations and projections with respect to
future matters, including trends in results of operations, margins,
growth rates, overall market trends, the impact of interest or
exchange rates, the availability of financing, anticipated cost
savings and synergies and the execution of Pearson’s
strategy, are forward-looking statements. By their nature,
forward-looking statements involve risks and uncertainties because
they relate to events and depend on circumstances that will occur
in future. They are based on numerous assumptions regarding
Pearson’s present and future business strategies and the
environment in which it will operate in the future. There are a
number of factors which could cause actual results and developments
to differ materially from those expressed or implied by these
forward-looking statements, including a number of factors outside
Pearson’s control. These include international, national and
local conditions, as well as competition. They also include other
risks detailed from time to time in Pearson’s publicly-filed
documents and you are advised to read, in particular, the risk
factors set out in Pearson’s latest annual report and
accounts, which can be found on its website (www.pearsonplc.com).
Any forward-looking statements speak only as of the date they are
made, and Pearson gives no undertaking to update forward-looking
statements to reflect any changes in its expectations with regard
thereto or any changes to events, conditions or circumstances on
which any such statement is based. Readers are cautioned not to
place undue reliance on such forward-looking
statements.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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PEARSON
plc
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Date: 01 May
2026
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By: /s/
CHRISTIE WOLSTENCROFT
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------------------------------------
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Christie
Wolstencroft
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Senior
Assistant Company Secretary
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