SO) announced earnings with an EPS of $0.45 and revenue of $2.28 billion, surpassing estimates.Pearson plc, trading on the NYSE under the symbol PSO, is a global leader in lifelong learning. The company is transitioning into a technology-driven learning provider, focusing on digital education and AI-powered personalized learning. Pearson's recent strategic partnership with Amazon Web Services (AWS) aims to enhance its cloud and AI capabilities, solidifying its position in the digital education sector.
On February 28, 2025, Pearson reported its earnings before the market opened. The company achieved an earnings per share (EPS) of $0.45, which matched the estimated EPS. Pearson's actual revenue was approximately $2.28 billion, surpassing the estimated revenue of about $2.25 billion. Following the release of these robust preliminary results, Pearson shares increased by 3.4% in early trading, as highlighted by the positive market response.
Financially, Pearson reported a 10% increase in adjusted operating profit, reaching £600 million, with margins rising from 15.6% to 16.9%. The company's free cash flow surged to £490 million, surpassing expectations due to strong business performance and cost efficiencies. This financial strength enabled Pearson to announce a £350 million share buyback, building on the £500 million program completed the previous year.
Pearson's strategic initiatives, including the accelerated AI rollout and partnership with AWS, are part of a broader effort to address the $1.1 trillion annual cost to the U.S. economy due to inefficient career transitions and learning gaps. This collaboration aims to optimize and scale Pearson's educational products and services, particularly in higher education, enhancing cloud training and credentialing.
Pearson's financial metrics reflect its strong market position. The company has a price-to-earnings (P/E) ratio of approximately 27.07, indicating investor confidence. Its price-to-sales ratio stands at about 2.63, and the enterprise value to sales ratio is around 2.99. With a debt-to-equity ratio of 0.42 and a current ratio of approximately 1.78, Pearson demonstrates a solid financial foundation and liquidity to cover short-term liabilities.
