Pearson PLC (NYSE:PSO) reported earnings per share (EPS) of $0.454, slightly below estimates but showcased strong revenue figures of $2.28 billion, surpassing expectations.
The Higher Education segment led growth with a 6% increase, driven by AI-powered study tools and digital subscriptions.
Despite a slight miss in EPS, Pearson’s strategic initiatives and a £350 million share buyback program signal confidence in future growth.
Pearson PLC, listed as NYSE:PSO, is a global education company known for its educational materials and services. On May 2, 2025, Pearson reported earnings per share (EPS) of $0.454, slightly below the estimated $0.456. Despite this, the company’s revenue reached $2.28 billion, surpassing the estimated $2.25 billion, showcasing its strong market presence.
Pearson’s first-quarter performance aligns with its full-year guidance, with group sales increasing by 1% on an underlying basis. The Higher Education segment led the growth with a 6% increase in sales, driven by AI-powered study tools and digital subscriptions. This growth is crucial as Pearson anticipates stronger sales in the second half of the year.
Despite the positive revenue figures, Pearson’s shares fell by 3% to 1,140p following the announcement. The decline in share price may be attributed to the slight miss in EPS expectations. However, Pearson remains optimistic, with Chief Executive Omar Abbosh expressing confidence in meeting the year’s expectations.
Pearson’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 23.73, indicating investor confidence. Its price-to-sales ratio is about 2.30, and the enterprise value to sales ratio is around 2.56, reflecting the company’s valuation relative to its sales.
Pearson’s strategic initiatives, such as the Pearson Skilling Suite and AI-powered Smart Lesson Generator, are expected to drive future growth. The company has also launched a £350 million share buyback program and secured new contracts, including with the UK Ministry of Defence. These efforts align with Pearson’s goal of achieving stronger growth in the latter half of the year.
