Pearson raises dividend as adjusted operating profit grows 6%

The Tip Desk · March 13, 2026 · 2 min read

The lifelong learning company reported a free cash flow conversion rate of 125% for the 2025 fiscal year.

Pearson, a global lifelong learning company, reported adjusted operating profit of £614 million for 2025, representing a 6% increase on an underlying basis compared to 2024. The company achieved sales of £3,577 million, reflecting underlying growth of 4%. Group adjusted operating profit margins improved to 17.2% from 16.9% in the prior year.

Cash generation remained a primary driver of the company's financial position. Pearson reported free cash flow of £527 million, an 8% headline increase over 2024. This performance supported a £350 million share buyback completed in 2025 and the announcement of an additional £350 million programme in January 2026. The company is recommending a 5% increase in the final dividend, bringing the full-year dividend to 25.2p per share.

Growth was supported by the integration of AI and digital technologies across the portfolio. In the Assessment & Qualifications segment, the company noted standout performance from UK & International Qualifications and Clinical Assessment, the latter of which expanded its customer base through the first state-wide adoption of its digital offering. Pearson also launched an AI-powered GCSE Exam Practice Assistant and Revibe, an AI-enabled wearable developed with Samsung Electronics.

Strategic expansion focused on enterprise capabilities and cloud transformation through partnerships with Google Cloud, AWS, and Microsoft. To scale delivery and operational agility, the company signed professional services partnerships with IBM, Deloitte, TCS, Cognizant, and HCLTech. These initiatives are intended to address growth vectors in Enterprise Skills and Early Careers.

Management expects the company to deliver consistent mid-single digit sales growth over the medium term. The company identifies high global inflation, recessions, and high interest rates as significant near-term risks that could pressure consumer and enterprise budgets, potentially reducing demand for its products.