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Pearson plc (PSON.L)

Communication Services Balanced

Pearson is a global education company that has shifted from traditional printed textbooks to digital learning tools, online courses, and professional certifications.

£12.57

Is Pearson plc a good stock for a UK beginner?

The honest version: Pearson is a global education company that has shifted from traditional printed textbooks to digital learning tools, online courses, and professional certifications.

No rating · no target price · nothing for sale here
Price+19.0%
52-week range+19% past year
£12.57
Low £8.75High £13.37
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Pearson plc
£1,190+19%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£7.55B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
1.85M
Day range: The lowest and highest price the shares traded at during the latest day.
£12.29 – £12.97
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£8.75 – £13.37
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
24.6
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
1.9%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
-0.04
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. -0.04
Calm
Wild
Steadier than most

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +1% past week · ▲ +19% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Pearson becomes the dominant global platform for lifelong learning.

The bear case

Failure to adapt to new AI-driven education technologies.

What does Pearson plc do?

Pearson helps people learn through digital platforms, assessments, and qualifications, moving away from its old-school roots in physical publishing. The bulk of its revenue is from selling access to its digital learning software and providing testing services for schools and professional bodies. Watch how successfully they grow digital services to offset the fading revenue from their older, printed book business.

VQGMI
Factor profile

On our factor screen it looks strongest on momentum and quality, and weakest on growth.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 30Quality: How profitable and financially healthy the company is (higher = stronger). 55Growth: How fast revenue and earnings are growing (higher = faster). 25Momentum: How the share price has been trending recently (higher = stronger recent run). 71Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 50
Quick checks
What's strong
  • Momentum screens high (71/100)
  • Strong brand recognition in the global education sector
  • High gross margins suggest a valuable product offering
  • Clear strategic pivot toward digital and online services
What to watch
  • Value screens low (30/100)
  • Growth screens low (25/100)
  • Rapidly changing technology making current platforms obsolete
  • Government policy changes affecting education budgets
  • Intense competition from new, agile tech-focused education startups

What do Pearson plc's numbers mean?

P/E
25.3
This shows how much you are paying for every pound of the company's recent profit; a higher number suggests investors are expecting future growth.
Forward P/E
16.5
This is the same as the P/E ratio, but it uses predicted future profits instead of past ones, suggesting analysts expect earnings to improve.
Gross margin
52.0%
This tells us how much money is left from sales after paying for the direct costs of creating their products, showing a healthy gap.
Dividend yield
2.0%
This is the annual cash payout to shareholders as a percentage of the share price, acting as a small 'thank you' for holding the stock.

Does Pearson plc pay a dividend?

Yes - Pearson plc currently pays a dividend of about 1.9% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

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What are the scenarios for Pearson plc?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£14£13£9today · £13▲ Bull · £14• Base · £13▼ Bear · £12in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +10%Stronger than expected demand for digital assessment tools.
Base
-2% to +2%Steady performance in line with current market trends.
Bear
-5% to -10%Unexpected drop in student enrollment or testing volumes.

What are the pros and cons of Pearson plc?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Strong brand recognition in the global education sector
  • High gross margins suggest a valuable product offering
  • Clear strategic pivot toward digital and online services
The catch3
  • Significant decline in recent earnings
  • Legacy print business continues to shrink
  • High P/E ratio relative to current earnings performance
Key risks3
  • Rapidly changing technology making current platforms obsolete
  • Government policy changes affecting education budgets
  • Intense competition from new, agile tech-focused education startups
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.