H1 26: 6% Adj. EBIT Beat Driven by Higher Ed; FY26 Guidance Unchanged

Research evidence excerpt

H1 26: 6% Adj. EBIT Beat Driven by Higher Ed; FY26 Guidance Unchanged

UpdateMdelivery phasing, which is expected to reverse in H2.

• Higher Ed. Revenue increased 2% underlying to £350m, ~2% above

consensus of £344m, driven by a solid performance in core US Courseware

and a return to growth in K12, partly offset by weaker International Higher

Education. Inclusive Access growth accelerated to 20% and now represents

50% of core US Courseware. Adjusted EBIT increased to £21m versus

consensus of £6m, reflecting operating leverage, continued cost efficiencies

and lower amortisation following the 2025 product development

impairment.

• Virtual Learning. Revenue increased 19% underlying to £280m, ~1% above

consensus of £277m, driven by enrolment growth, funding and favourable

mix. Enrolment growth accelerated to 15% in the Spring semester, while

Pearson is on track to open five new schools for the 2026/27 academic year.

Adjusted EBIT increased 31% underlying to £49m, ~4% above consensus of

£47m, reflecting operating leverage.

• English Language Learning. Revenue declined 3% underlying to £166m, ~3%

below consensus of £172m. Growth in Institutional was more than offset by

PTE, where volumes declined 3% as tighter migration policies and

geopolitical disruption weighed on the market. Adjusted EBIT improved to a

£2m loss versus consensus at £6m loss, as cost efficiencies offset the weaker

trading performance. Pearson continues to expect the division to return to

growth in Q4, although PTE headwinds are expected to persist in the near

term.

• Enterprise Learning & Skills. Revenue increased 7% underlying to £180m,

broadly in line with consensus of £179m, supported by another solid

performance in Vocational Qualifications and continued growth in Enterprise

Solutions.