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Pearson Reports Profit Surge and £350M Share Buyback as AI Integration Gains Momentum

Pearson Reports Profit Surge and £350M Share Buyback as AI Integration Gains Momentum

Artificial intelligence, Education9 months ago574 Views

Education publishing giant Pearson has unveiled a £350 million share buyback programme alongside robust full-year results, demonstrating the successful integration of artificial intelligence across its product range.

The FTSE 100 company reported a 10% increase in adjusted operating profits to £600 million for the year ending 31 December, while underlying sales grew 3% to reach £3.5 billion. Shareholders will receive a final dividend of 16.6p per share, bringing the total yearly dividend to 24p, marking a 6% increase from the previous year.

Omar Abbosh, who joined from Microsoft to lead the organisation in 2023, emphasised that the adoption of AI technologies, coupled with refined market strategies, is creating positive momentum across all business segments. The company’s largest division, assessment and qualification, saw underlying sales rise by 3%, while the English-language learning unit demonstrated impressive growth of 8%.

The education specialist’s transformation from traditional learning methods to digital solutions received a significant boost through a newly announced strategic partnership with Amazon Web Services (AWS). Matt Garman, AWS Chief Executive, highlighted the collaboration’s potential to deliver personalised and accessible learning experiences through innovative technology.

Looking ahead, Pearson projects sales growth, profits, and cashflow to align with market expectations. Analysts anticipate underlying sales growth of 4.4% and adjusted operating profits of £656 million for the current financial year. The virtual learning division is expected to return to growth in the latter half of 2025, driven by increased enrolments and new school openings.

The market responded positively to the announcements, with Pearson’s shares closing up 26p, representing a 2% increase, at £13.61½p. Goldman Sachs analysts view the AWS partnership as evidence of Pearson’s strengthening ability to market and bundle products across its diverse divisions.

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