Investing.com — Pearson PLC (LON:) on Friday reported first-half revenue of £1,779 million, representing 4% underlying growth and exceeding the analyst consensus of £1,763 million by 1%. Adjusted EBIT reached £276 million, up 14% on an underlying basis, beating the consensus estimate of £262 million by 6%.
The adjusted EBIT margin expanded to 15.5%, up 140 basis points YoY, compared to the company’s medium-term target of approximately 40 basis points annually.
The profit beat was driven by operating leverage, continued cost efficiencies, lower Higher Education amortization following a 2025 product development impairment, and investment phasing.
Higher Education accounted for most of the upside, with English Language Services, English Language Learning, and Virtual Learning also performing ahead of expectations, partly offset by weaker Assessment & Qualifications profitability. Despite the strong first-half performance, the company left its fiscal 2026 guidance unchanged.
Shares fell 3.5% following the results, as investors focused on the lack of raised guidance and questions about second-half margin progression.
Revenue growth was led by Virtual Learning, which increased 19%, and English Language Services, which grew 7%. Assessment & Qualifications returned to growth in the second quarter and secured a new agreement with a leading AI lab to deliver its global certification programme.
The profit beat was supported by investment phasing, raising questions about how much of the first-half margin expansion will carry into the second half and whether Assessment & Qualifications margins will improve from first-half levels.