Core Insights - The integration of AI study tools in high school education has led to improved academic performance among students, prompting a reevaluation of study habits [1][3][7] Group 1: AI Study Tool Implementation - Pearson's AI study tool was utilized by nearly 6,500 high school students during the 2024-2025 school year, specifically in Biology and World History courses [2][8] - The tool provides step-by-step guidance on practice test questions, breaking down complex problems and encouraging deeper understanding through follow-up questions [4][6] Group 2: Academic Outcomes - Biology students using the AI tools experienced an 11% increase in end-of-semester passing rates and a 5% boost in final course scores [8] - World History students saw a 7% rise in passing rates and a 5% increase in final scores when utilizing the AI tools [8] Group 3: Future Plans and Commitment - Pearson plans to expand the AI study tool's availability for the 2025-2026 school year to include middle and high school Algebra, with additional courses to be added as they are validated [5] - The company emphasizes the responsible application of AI to enhance educational experiences, backed by learning science and subject matter expertise [7][10]

Core Insights - Pearson has announced the international expansion of its AI-enhanced video learning platform, Study Prep, which now supports personalized study across more than 25 academic subjects globally [1][3]. Group 1: Product Expansion - Study Prep will now be available to students in Canada, Brazil, the UK, India, China, and South Africa, marking a significant step in broadening access to AI-powered learning resources [1]. - The platform was launched commercially in the first half of 2025 and was previously known as "Channels" in the United States [5]. Group 2: Learning Experience - Study Prep combines human expertise with AI designed specifically for learning, providing a comprehensive educational experience [2]. - The platform offers support in various disciplines, including sciences, math, and psychology, with plans to add more subjects in the future [3]. Group 3: AI Application and Outcomes - Pearson's use of generative AI is supported by learning science and vetted by subject matter experts, leading to improved learning outcomes such as increased engagement and higher-order cognition [4]. - Over 80% of Pearson's products are now digital or digitally enabled, reflecting the company's commitment to responsibly applying AI to enhance educational experiences [4]. Group 4: Features and Functionality - Study Prep includes thousands of bite-sized video explanations, practice problems, and assistance from expert human tutors, along with AI-powered study tools [7]. - The platform's syllabus-matching technology creates personalized study plans tailored to individual courses, and students can interact with video content through an AI chatbot for real-time assistance [7].

Financial Data and Key Metrics Changes - Sales increased by 2% on an underlying basis, in line with guidance set in February [31] - Adjusted operating profit also rose by 2% to £242 million, while adjusted earnings per share decreased to 24.5p due to FX headwinds [31] - Free cash flow improved significantly, up £129 million to £156 million, aided by good working capital management [37] - Net debt decreased by £200 million to £1 billion, driven by free cash flow [37] Business Line Data and Key Metrics Changes - Assessments and Qualifications sales grew by 2%, with strong growth in Clinical Assessments and UK International Qualifications, offset by declines in Pearson VUE and U.S. Student Assessment [32] - Virtual School sales declined by 1%, but enrollments increased by 5% in the spring semester [34] - Higher Education sales grew by 4%, with a notable 213% increase in digital subscriptions [34] - English Language Learning declined by 3%, while Pearson Test of English remained flat [35] - Enterprise Learning and Skills grew by 4%, supported by strong performance in Vocational Qualifications [35] Market Data and Key Metrics Changes - The medium-term outlook for PTE and ELL remains strong, supported by demographics and operational track record [10] - Federal funding accounts for a small proportion of total funding for K-12 and Higher Ed, with minimal impact from international mobility [9] Company Strategy and Development Direction - The company’s strategy remains unchanged, focusing on medium-term growth engines and innovation in products and services [6] - Emphasis on AI and skill development to address the evolving workforce demands [11] - The acquisition of eDynamic Learning is expected to enhance the company’s early career strategy and support medium-term guidance [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s trajectory, citing strategic clarity and execution focus [44] - The company is well-positioned to take advantage of emerging opportunities despite market dynamics [7] - Management expects full-year financial performance to align with earlier expectations, with growth weighted towards the second half of the year [38] Other Important Information - The company is transforming revenue operations and modernizing marketing approaches to improve efficiency [19] - AI-driven simplification is progressing, with significant improvements in customer interactions and content development [20] Q&A Session Summary Question: Performance of new and renewed contracts - Management confirmed that contracts like ServiceNow and Salesforce are performing in line with expectations, with growth anticipated in 2026 [48][51] Question: Opportunities from Gen AI products - Management highlighted the potential of AI to enhance learning outcomes and drive cost efficiencies across various divisions [54][55] Question: Q3 and Q4 revenue growth expectations - Management provided insights on the expected growth drivers, including new contracts and enrollment increases in virtual schools [63][66] Question: Details on Pearson VUE contract pause - Management clarified that the pause was specific to an individual situation and not indicative of broader trends [76] Question: Expectations for English Language Learning growth - Management expressed confidence in institutional growth in the second half, particularly in Latin America [79] Question: Higher Education enrollment expectations - Management indicated that flattish enrollments are still the base case for planning, with growth expected from pricing and new product rollouts [84][88]

Financial Data and Key Metrics Changes - Sales increased by 2% on an underlying basis, in line with previous guidance [33] - Adjusted operating profit also rose by 2% to £242 million, while adjusted earnings per share decreased to 24.5p due to FX headwinds [33] - Free cash flow improved significantly, up £129 million to £156 million, supported by strong working capital management [39] - Net debt decreased by £200 million to £1 billion, driven by free cash flow [39] Business Line Data and Key Metrics Changes - Assessments and Qualifications sales grew by 2%, with strong growth in Clinical Assessments and UK International Qualifications, offset by declines in Pearson VUE and U.S. Student Assessment [34] - Virtual School sales declined by 1%, but enrollments increased by 5% in the spring semester [36] - Higher Education sales grew by 4%, with a notable 213% increase in digital subscriptions [36] - English Language Learning declined by 3%, while Pearson Test of English remained flat [37] - Enterprise Learning and Skills grew by 4%, driven by strong performance in Vocational Qualifications [37] Market Data and Key Metrics Changes - The U.S. Federal Government's hiring freeze is expected to impact PDRI in the near term, but long-term relationships position the company well for future opportunities [7][8] - The medium-term outlook for PTE and ELL remains strong, supported by demographics and operational track records [9] Company Strategy and Development Direction - The company’s strategy remains unchanged, focusing on building growth engines in the Enterprise business and innovating products and services [5] - The strategic framework includes a focus on higher growth opportunities, unlocking innovation, and embedding a high-performance culture [12] - The company is targeting growth in adjacent markets, with a focus on partnerships and operational improvements [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term trajectory, citing strategic clarity and execution focus [5][47] - The company is on track to deliver financial performance in line with expectations set earlier in the year [6][40] - Management highlighted the importance of AI in shaping the future of learning and driving operational efficiencies [57][59] Other Important Information - The acquisition of eDynamic Learning for £225 million is expected to support medium-term guidance, despite near-term integration costs [43] - The company is implementing operational improvements, including revenue operations transformation and modern marketing approaches [19][20] Q&A Session Summary Question: Performance of new and renewed contracts - Management confirmed that contracts like ServiceNow and Salesforce are performing in line with expectations, with growth anticipated in 2026 [51][54] Question: Opportunities from Gen AI products - Management highlighted the potential of AI to drive cost efficiencies and improve customer experiences across various divisions [57][59] Question: Q3 and Q4 revenue growth expectations - Management provided insights on expected growth driven by new contracts and the cessation of previous school losses impacting Virtual Learning [66][70] Question: Higher Education enrollment expectations - Management indicated that enrollment growth is expected to be supported by pricing strategies and new product rollouts [72][85] Question: Details on Pearson VUE contract pause - Management clarified that the pause was specific to an individual contract and not indicative of broader issues [78][80] Question: Growth expectations in English Language Learning - Management expressed confidence in growth from the institutional business in the second half, particularly in Latin America [83] Question: Adoption share performance in Higher Education - Management reported a slight increase in adoption share compared to the previous year, with a focus on upcoming sales cycles [96]

Financial Performance - Sales reached £1,722 million, reflecting a 2% underlying increase[35] - Adjusted operating profit increased by 2% underlying to £242 million[35] - Adjusted earnings per share (EPS) decreased by 4% headline to 245 pence[35] - Interim dividend increased by 5% to 78 pence[35] - Free cash flow significantly increased by £129 million to £156 million[35] - Net debt decreased from £12 billion to £10 billion[35] Segment Performance (Sales) - Assessment & Qualifications sales were £802 million, a 2% underlying increase[37] - Virtual Learning sales were £242 million, a 1% underlying decrease[37] - Higher Education sales were £337 million, a 4% underlying increase[37] - English Language Learning sales were £171 million, a 3% underlying decrease[37] - Enterprise Learning & Skills sales were £170 million, a 4% underlying increase[37] Strategic Outlook - The company reaffirms its full-year outlook and remains on track to meet 2025 priorities[36,49] - The company anticipates stronger sales growth in the second half of the year, particularly in Q4[41]

Financial Performance - Group sales decreased by 2% on a headline basis to £1,722 million in H1 2025 compared to £1,754 million in H1 2024, but increased by 2% on an underlying basis [29][31] - Adjusted operating profit increased by 2% on an underlying basis to £242 million, while statutory operating profit rose by 10% to £240 million [5][29] - Free cash flow increased significantly by £129 million to £156 million, aided by a £114 million State Aid tax recovery [6][49] Strategic Developments - The company is on track to meet its 2025 guidance, with expectations of stronger growth in the second half of the year [3][6] - Strategic partnerships with major tech companies like Microsoft, AWS, and Google Cloud are enhancing the company's AI transformation agenda [6][13] - The acquisition of eDynamic Learning for $225 million is expected to strengthen the company's position in the Early Careers space [58] Business Unit Performance - Assessment & Qualifications sales increased by 2% on an underlying basis, with strong growth in Clinical Assessments and UK & International Qualifications [5][19] - Virtual Learning sales decreased by 1% on an underlying basis, with a 5% decline on a headline basis due to previous school losses [20] - Higher Education sales rose by 4% on an underlying basis, driven by a 21% increase in Inclusive Access and a 3% rise in US digital subscriptions [21] Cash Flow and Capital Management - Operating cash flow was stable at £126 million, while net cash generated from operations was £188 million [47][48] - The company has initiated a £350 million share buyback program, with £169 million of shares repurchased by June 30, 2025 [6][61] - Net debt decreased to £1.0 billion from £1.2 billion at the end of H1 2024, reflecting strong cash performance [51] Outlook - The company reaffirms its medium-term outlook, projecting mid-single digit underlying sales growth and sustained margin improvement [8][25] - Sales growth is expected to be H2 weighted, particularly in Q4, driven by new and renewed contracts [25]

LONDON and NOIDA, India, July 29, 2025 /PRNewswire/ -- Pearson (FTSE: PSON.L), the world's lifelong learning company, and HCLTech, a global technology company, today announced a multi-year strategic partnership to accelerate the transformation of learning, skills and workforce readiness in an AI-driven world. In addition, Pearson's AI-powered learning and assessment tools will be embedded across HCLTech's internal HR ecosystem. This includes structured learning pathways, verified credentials through Credly, ...

Core Insights - Pearson announces updates to its English language testing portfolio, including enhancements to the Pearson Test of English (PTE) and the launch of the Pearson English Express Test, aimed at improving the testing experience for governments, universities, and test takers globally [1][10] Enhancements to PTE - Starting August 2025, PTE Academic will introduce two new speaking tasks: "Respond to a Situation" and "Summarize a Group Discussion," designed to assess real-world communication skills [2] - The scoring model will be enhanced with advanced AI and human expert collaboration to better detect unoriginal responses [3] - New preparation resources for the enhanced PTE Academic include scored practice tests, expert courseware, webinars, and video content [3] Trusted Fundamentals - PTE remains fully computer-based, primarily AI scored, and delivers results typically within two days, trusted by over 3,500 institutions and millions of learners worldwide [4] Growth in Test Center Network - PTE's secure test center network expanded with 30 new centers in 2025, totaling 517 locations across various countries, supporting growth in migration and study abroad markets [5] Introduction of Pearson English Express Test - The Pearson English Express Test is a new online assessment designed for US-bound learners, offering a one-hour test that can be taken anytime, anywhere, with results available within minutes [6] - This test addresses the demand from universities for secure and accurate English proficiency assessments, allowing institutions to set scores using Pearson's Global Scale of English (GSE) [7] Security Features - Universities will receive samples of written and spoken responses, with security features including identity checks, human oversight, and dual-camera monitoring [8] Company Commitment - Pearson emphasizes its investment in assessment innovation to meet the needs of governments, institutions, and learners, with enhancements to PTE Academic effective from August 7, 2025 [10]

Core Insights - Pearson's Generative AI Foundations Certification has experienced double-digit monthly growth since its launch in October 2024, attracting a global audience of learners [1][8] - The company is expanding its AI learning content portfolio to cater to K-12, higher education, professional, and enterprise learners, addressing the urgent need for advanced skills in the workforce [1][3] Company Initiatives - The expanded portfolio includes certification opportunities across various formats and disciplines, focusing on agentic AI, large language models, machine learning, and ethical AI implementation [2] - Pearson's AI-related live training hours have nearly doubled from 580 to 996 content hours in the past year, highlighting the company's commitment to enhancing AI understanding in educational settings [3] Industry Context - The skills gap is becoming a significant concern, with estimated annual economic losses of $1.1 trillion in the US and £100 billion in the UK due to a lack of relevant skills [4] - The emergence of agentic AI systems necessitates the development of essential skills for future success in both education and the workplace [4] Strategic Partnerships - Pearson has formed strategic partnerships with major tech companies such as Microsoft, Amazon Web Services, and Google to enhance its AI learning offerings and transform the learning experience [5] Learning Content Features - The expanded AI learning content includes modules on responsible AI use, with AI Literacy modules launching in select courses this fall, allowing students to earn recognized badges for completion [8]

Core Insights - The 2025 Pearson School Report indicates that over 1.65 million primary and secondary students and more than 250,000 college students in England may lack the emotional readiness and academic level required to progress in their education [1][3]. Group 1: Student Readiness - Teachers estimate that at least one in three primary (32%) and secondary (31%) students are not ready to advance, while 43% of college tutors express similar concerns for 16-18-year-olds [3][4]. - Factors affecting student readiness include special educational needs and/or disabilities (79%), struggles with writing (75%), and independence (73%) for primary students; self-motivation (77%), independence (65%), and social maturity (62%) for secondary students; and digital wellbeing (30%) and critical thinking (30%) for college students [4][5]. Group 2: Educational Gaps and Suggestions - A significant number of students express concerns about their preparedness for future learning, with 17% of school students and 26% of college students feeling unready [3][4]. - Suggestions from educators include integrating real-life lessons, enhancing practical skills, adapting to AI advancements, and establishing clearer links between education and career paths [5][6]. - A notable 40% of students feel that money management and budgeting skills are lacking in their education, alongside other essential skills such as communication and job readiness [5][6]. Group 3: Curriculum and Assessment - There is a call for a reduction in curriculum volume and less emphasis on final exams, with 20% of college students indicating that curriculum volume impacts their learning [5][6]. - 58% of school teachers advocate for addressing curriculum volume, while 34% of school teachers believe modular assessments would enhance outcomes [5][6]. Group 4: Future Preparedness - The report emphasizes the need for education to evolve in response to technological advancements, with 44% of secondary teachers feeling students are not adequately prepared for an AI-driven world [5][7]. - The importance of lifelong learning is highlighted, as today's children will face a rapidly changing job market influenced by robotics and AI [7][8].