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PSOPearson plc
$16.12$10.0B
Overview & Tools
OverviewChart Terminal ↗Visualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
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P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
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Live BreakoutsStock ScreenerOwnership
PSO logo

Pearson plc

PSO
NYSE · Publishing
$16.12
At close - Oct 2, 4:00 PM EDT - USD
Market Cap$10.03B
P/E24.4x
52W High$17.75
Volume550.77K
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q2

Margin Expansion Masks AI Disruption Risk

Pearson's strategic pivot to digital and assessment services has driven gross margin expansion from 46.1% in 2022Q2 to 51.2% in 2026Q2, with operating margin improving to 14.2% in 2026Q2. The company generates robust cash flow, with operating cash flow exceedi...

GrowthStable
ProfitabilityModerate
ValuationAttractive
TechnicalsMixed
Explore valuation models
MARKET ACTION

PSO price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

8/12 Beats

EPS beat 8 of last 12 quarters

02

Valuation risk

+20% Peers

P/E is 20% above peer median

03

Market leadership

RS 73 · Avg

Average momentum (RS Rating: 73)

04

Mixed Trend

Mixed

Price < 50DMA but > 200DMA

Next CatalystEstimated earnings · Oct 31
01

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis
Fundamental Trajectory

Revenue growth has stabilized at 4.1% in 2026Q2, while gross margin expanded to 51.2% and operating margin reached 14.2%, reflecting a shift to higher-margin digital offerings.

Analyst Consensus-10.0% target
Hold(15 analysts)
2 Buy13 Hold0 Sell

The Bull Case

Upside Catalysts

Price target upside potential

The bull case price target of $29 suggests significant upside potential based on forward EPS estimates and historical P/E ratios.

Digital transformation in education

Pearson's shift towards digital learning resources and tools positions it to capitalize on the growing demand for online education.

Customizable educational solutions

Pearson's ability to offer tailored educational materials and resources meets the diverse needs of modern teaching and learning environments.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 10/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
PSO+20.19%
S&P 500 (^GSPC)+12.66%
1-Year Return
PSO+15.80%
S&P 500 (^GSPC)+15.01%
3-Year Return
PSO+65.57%
S&P 500 (^GSPC)+79.70%
5-Year Return
PSO+78.58%
S&P 500 (^GSPC)+80.05%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/E5Y Low
24.4x
Forward P/EExpansion
22.9x
EV/EBITDA0th %ile
7.3x
FCF YieldCash Flow
8.5%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
24.4x
28.1x
20th· Low
EV/EBITDA
7.3x
9.8x
0th· Low
Price/FCF
11.7x
22.1x
0th· Low
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$37.83+134.7%
Base (Fair)$56.56+250.9%
Bull$106.77+562.3%
$37.83 Bear$56.56 Base$106.77 Bull
Current Market Price: $16.12
Trades at a 71.5% discount to Base DCF ($56.56)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue
$3.58B+0.7% YoY
Net income
$328M-24.5% YoY
Free cash flow
$647M+28.5% YoY
Operating margin
17.3%+2.1 pts YoY
ROIC (TTM)9.5%
Avg ROIC 5Y-
ROE (TTM)8.5%
Piotroski Score7 / 9
Financial Statements →
03

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History
EPS Beat Rate8/12 (73%)
Revenue Beat Rate3/12 (27%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q3 2026Latest
Jul 31, 2026
$0.39+9.0%
vs $0.36
$2.4B+2.1%
vs $2.3B
Q1 2026
Feb 27, 2026
$0.53+1.1%
vs $0.52
$2.5B-1.1%
vs $2.5B
Q3 2025
Aug 1, 2025
$0.32+4.9%
vs $0.31
$2.3B-3.8%
vs $2.4B
Q1 2025
Feb 27, 2025
$0.51+11.1%
vs $0.46
$2.2B-0.1%
vs $2.3B
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

5 Stories
PRNewsWire·3d ago
Pearson Acquires Workera, a Pioneer in AI-Native Enterprise Assessment and Skills Verification

Pearson strengthens enterprise offering with adaptive assessment and skills intelligence to meet growing demand for workforce transformation in the era of AI LONDON, Sept. 29, 2026 /PRNewswire/ -- Pearson (FTSE: PSON.L), the world's lifelong learning company, today announced it has agreed to acquire Workera, the AI-native skills intelligence platform used by leading enterprises to verify what their workforce can actually do.

PRNewsWire·4d ago
Pearson and Namibox Sign Strategic Cooperation Memorandum, Join Forces to Shape a New Global Learning and Education Landscape in the AI Era

SHANGHAI, Sept. 28, 2026 /PRNewswire/ -- During the 48th WorldSkills Competition, Pearson (NYSE: PSO), a global lifelong learning company, and Namibox (Nasdaq: NAMI), a China-based K-12 digital education platform, formally signed a strategic cooperation memorandum.

PRNewsWire·Sep 24, 2026
Pearson research warns of a 'triple capability gap' emerging as AI adoption outpaces education and training in skilled occupations

SHANGHAI, Sept. 24, 2026 /PRNewswire/ -- Pearson (FTSE: PSON.L) today launched new research, For Every Future: Preparing Early-Career Skilled Trade, Technical and Service Talent for an AI-Infused World, at the WorldSkills International Conference 2026 in Shanghai.

Zacks Investment Research·Sep 8, 2026
All You Need to Know About Pearson (PSO) Rating Upgrade to Buy

Pearson (PSO) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Filtered for Pearson plcMore Headlines
04

Compare before deciding

Benchmark PSO against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Pearson plc (PSO)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
PSO logoPSOPearson plcCurrent
$16.12$10.03B24.360.7%9.16%8.5%1.95%
SCHL logoSCHLScholastic Corporation
$36.20$857.87M15.47-2.68%3.6%7.05%—
STRA logoSTRAStrategic Education, Inc.
$79.72$1.81B14.713.96%10.46%8.19%—
PRDO logoPRDOPerdoceo Education Corporation
$31.91$2B13.1924.2%20.63%17.7%—
LOPE logoLOPEGrand Canyon Education, Inc.
$155.79$4.13B20.217.07%19.63%31.24%—
CHGG logoCHGGChegg, Inc.
$0.74$82.63M-0.77-38.97%-19.96%-41.94%—

Compare PSO vs Peers

Pearson plc (PSO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs SCHL

Most directly comparable listed peer for PSO.

Scale Benchmark

vs GOOG

Larger-name benchmark to compare PSO against a more recognizable public peer.

Peer Set

Compare Top 5

vs SCHL, STRA, PRDO, LOPE

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PSO Frequently Asked Questions

Pearson plc (PSO) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Pearson plc's revenue?

Pearson plc (PSO) reported $7.16B in revenue for fiscal year 2025. This represents a 227% increase from $2.19B in 1996.

How fast is Pearson plc growing?

Pearson plc (PSO) grew revenue by 0.7% over the past year. Growth has been modest.

Is PSO profitable?

Yes, Pearson plc (PSO) is profitable, generating $760.0M in net income for fiscal year 2025 (9.2% net margin).

Dividend & Returns
Does PSO pay dividends?

Yes, Pearson plc (PSO) pays a dividend with a yield of 1.95%. This makes it attractive for income-focused investors.

What is PSO's return on equity?

Pearson plc (PSO) has a return on equity (ROE) of 8.5%. This is below average, suggesting room for improvement.

What is Pearson plc's free cash flow?

Pearson plc (PSO) generated $1.40B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in PSO back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →