Pearson Plc · LSE:PSON

Pearson — H1 2026 Earnings Presentation

25 slides from Pearson's earnings presentation, Jul 31, 2026

  1. Slide 1: Pearson 2026 Interim Results

    Pearson 2026 Interim Results Friday 31st July 2026

  2. Slide 2: Forward-looking statements

    Forward-looking statements Except for the historical information contained herein, the There are a number of factors which could cause actual results and matters discussed in this presentation include forward-looking developments to differ materially from those expressed or statements. implied by th

  3. Slide 3: Key takeaways

    INTERIM RESULTS Key takeaways Good H1 On track to Excited about financial deliver guidance the future performance +4% Mid-single digit Technology advancements driving Revenue 1 underlying revenue growth major upskilling demand +14% £640-685m Pearson uniquely placed to benefit Adj. operating profit 1

  4. Slide 4: Unique characteristics and enduring strengths

    INTERIM RESULTS Unique characteristics and enduring strengths Leadership positions ~ 90% Profit Operationally complex physical Long history of operational and digital workflows and print excellence Trust Deeply embedded Proprietary data sets ~10% Profit Digital courseware, embedded in critical workf

  5. Slide 5: Ongoing execution against strategic framework

    INTERIM RESULTS Ongoing execution against strategic framework The World’s Lifelong Learning Company: Helping people realise Why the life they imagine through learning Medium term guidance Mid-single digit Driving performance in the core business underlying revenue CAGR Average margin growth What Exe

  6. Slide 6: Driving performance in the core business

    INTERIM RESULTS Driving performance in the core business Assessment & Continued Enterprise Google Cloud Digital Clinical International Qualifications growth certification strength expansion Virtual Delivering a 15% Spring enrolment 100% contract 5 new schools Learning standout year growth renewal ra

  7. Slide 7: Progress on driving execution synergies

    INTERIM RESULTS Progress on driving execution synergies Driving cost performance, agility and consistency of growth Modern Software & 360 degree Operational Systems Product Development Strategic Partnerships Fix fragmented Leveraging our data Deepening key approaches and IP partner relationships Sta

  8. Slide 8: Enterprise Skilling

    INTERIM RESULTS Enterprise Skilling Momentum across Enterprise offerings Professional Assessment Enterprise Solutions English Enterprise Strategic account growth New H1 8→10 Strategic partners AI skills verification Reinforces leadership in Rapid programme launch skills verification New global certi

  9. Slide 9: Early Careers

    INTERIM RESULTS Early Careers TOTAL ADDRESSABLE MARKET 1 LOW PENETRATION TODAY2 Large attractive market ~$6B ~4% Fragmented market Pearson well positioned to win Customers Continued progress in unlocking CTE 1 Total estimated addressable market across elective and CTE curriculum (“Learn”), college a

  10. Slide 10: Financial Review & Outlook

    Financial Review & Outlook 10

  11. Slide 11: Early priorities

    INTERIM RESULTS Early priorities 01 02 03 Continued Operational Simplification disciplined excellence and investment transparency 11

  12. Slide 12: H1 2026 Financial highlights

    INTERIM RESULTS H1 2026 Financial highlights • Delivered good H1 financial Underlying1 Revenue Growth Underlying1 Adj. Operating Profit performance • Underlying revenue growth in line with expectations, with +4% Revenue: £1,779m (H1 2025: £1,722m) +14% Adj. Operating Profit: £276m (H1 2025: £ 242m)

  13. Slide 13: H1 2026 Revenue & Adjusted operating profit

    INTERIM RESULTS H1 2026 Revenue & Adjusted operating profit Underlying Adj. Underlying Adj. Operating Adj. Operating £m Revenue Operating Profit Revenue Growth1 Profit Profit Margin Growth1 Assessment & Qualifications 803 2% 157 20% (6)% Virtual Learning 280 19% 49 18% 31% Higher Education 350 2% 21

  14. Slide 14: H1 2026 Cash Performance

    INTERIM RESULTS H1 2026 Cash Performance £m H1 2026 H1 2025 YoY Change • Continued Adjusted Operating Profit 276 242 34 strong free Net capex investment (5) 13 (18) cash flow Net product development (2) 14 (16) performance investment Working capital, FX and other 68 (143) 211 • Disciplined Operating

  15. Slide 15: 2026 outlook unchanged

    INTERIM RESULTS 2026 outlook unchanged Underlying revenue Mid-single digit growth Adjusted operating £640m-£685m at £:$ 1.35 Includes lower amortisation following the profit 2025 product development impairment Cash flow Free cash flow conversion* of 90-100% Growth to improve in H2 H2 Weighted to Q3

  16. Slide 16: Business unit expectations

    INTERIM RESULTS Business unit expectations Full year Assessment & Low to mid-single digit growth, driven by new contracts, products and Qualifications pricing. Virtual Learning Stronger growth than 2025 driven by a full year of enrolment growth. Underlying Will grow more than 2025, supported by prod

  17. Slide 17: Wrap up

    Wrap up 17

  18. Slide 18: Key takeaways

    INTERIM RESULTS Key takeaways 01 02 03 Good On track Excited H1 financial to deliver about the performance guidance future 18

  19. Slide 19: Appendix

    Appendix 19

  20. Slide 20: Technical guidance

    APPENDIX Technical guidance Tax c.25% Interest c.£80m Every 1c movement in £:$ rate equates to approximately £5m FX adjusted operating profit impact 20

  21. Slide 21: Selected data points for reference

    APPENDIX Selected data points for reference Higher Education Professional Inclusive Access No. of US digital PTE volume Assessments test Growth virtual schools subscriptions 1 volume 2 School year 26/27: H1 2026 20% 4.8m 474k 11.4m 46 virtual schools School year 25/26: H1 2025 21% 4.6m 491k 10.8m 41

  22. Slide 22: Other modelling assumptions

    APPENDIX Other modelling assumptions H1 2026 H1 2025 FY2025 Exchange rate £:$ (Average 1.34 1.31 1.32 rate for profits) Exchange rate £:$ (Period 1.32 1.37 1.35 end rate) Shares outstanding (basic) 1 599m 651m 635m Shares outstanding (basic 616m 662m 651m average) 1 1 Excludes ordinary shares purcha

  23. Slide 23: H1 2026 Revenue

    APPENDIX H1 2026 Revenue Headline Underlying £m 2026 2025 growth growth1 Assessment & Qualifications 803 802 0% 2% Virtual Learning 280 242 16% 19% Higher Education 350 337 4% 2% English Language Learning 166 171 (3)% (3)% Enterprise Learning & Skills 180 170 6% 7% Total revenue 1,779 1,722 3% 4% 1

  24. Slide 24: H1 2026 Adjusted operating profit

    APPENDIX H1 2026 Adjusted operating profit Margin Margin Headline Underlying £m 2026 2025 2026 2025 growth growth1 Assessment & Qualifications 157 170 20% 21% (8)% (6)% Virtual Learning 49 39 18% 16% 26% 31% Higher Education 21 (3) 6% (1)% 800% 700% English Language Learning (2) (7) (1)% (4)% 71% 43

  25. Slide 25: Copyright Pearson. All rights reserved.

    Copyright 2025 Pearson. All rights reserved.

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