Core Insights - Pearson reported accelerated sales growth of 4% in Q3 2025, contributing to a 2% growth for the nine-month period ending September 30, 2025, with expectations for stronger growth in Q4 [2][4][24] - The company is executing its strategic priorities effectively, leveraging innovative technologies and expanding its enterprise customer base, positioning itself well for future growth opportunities [1][4] Sales Performance - Underlying Group sales growth accelerated to 4% in Q3, with a total of 2% growth for the nine-month period [2][4] - Assessment & Qualifications sales grew by 4% in Q3, while Virtual Learning sales increased by 17% in the same period, driven by a 13% rise in enrolments for the 2025/26 academic year [5][9] - Higher Education sales decreased by 1% in Q3, primarily due to challenges in International Higher Education markets, although US Higher Education sales grew by 2% [5][13] Strategic Initiatives - Pearson has formed strategic partnerships with Cognizant and Deloitte, and launched a multi-year collaboration with Salesforce as their exclusive provider of certifications [4][5] - The company is expanding its AI learning content, including the launch of AI Literacy Modules and AI-powered Study Prep tools, which are showing positive impacts on learning outcomes [4][14] Future Outlook - The company expects Group sales growth and adjusted operating profit to align with market expectations for 2025, with stronger sales growth anticipated in Q4 [5][18] - Beyond 2025, Pearson is positioned for mid-single digit underlying sales growth CAGR and sustained margin improvement, with free cash flow conversion expected to be between 90% and 100% [5][19]

Core Insights - Pearson has launched new AI Literacy Modules aimed at equipping students with the skills to understand, use, and evaluate AI ethically and effectively, responding to the increasing demand for AI education in higher education and various industries [1][2]. Group 1: Product Launch Details - The AI Literacy Modules will be available in over 170 MyLab and Mastering courses across STEM, business, health professions, and humanities, designed to be short and student-friendly [2]. - Topics covered in the modules include validating AI-generated results and appropriately citing AI tool outputs, addressing the need for ethical AI education as identified by 98% of educators surveyed [2][3]. Group 2: Educational Impact - The modules are designed to help students absorb information in manageable segments, with clear definitions of jargon to enhance understanding [3]. - The initiative aims to guide students in the ethical use of AI, promoting academic integrity and preparing them for future careers [3]. Group 3: Recognition and Certification - Students completing the modules will earn Credly by Pearson badges, with a capstone badge awarded for completing all three modules, indicating proficiency in AI literacy [4]. - This launch is part of Pearson's broader AI learning ecosystem, which includes other credentials and certifications [4]. Group 4: Commitment to Responsible AI - Pearson emphasizes the responsible application of AI to enhance teaching and learning experiences, with over 80% of its products now being digital or digitally enabled [5]. - The application of generative AI is supported by learning science and vetted by subject matter experts, showing improved learning outcomes such as increased engagement and higher-order thinking [5].