PSO
Communication ServicesPearson plc · Publishing · $9B
What is Pearson plc?
Pearson plc is one of the world's largest education companies, delivering courseware, assessments, and learning services across more than 70 countries. Headquartered in London, it serves students, professionals, and institutions at every stage of learning.
Pearson generates revenue through five business segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. The company sells digital and print courseware to colleges and universities, administers high-stakes tests through Pearson VUE, offers virtual school programs, and provides professional credentials such as BTEC and GED qualifications. Its English language products serve both individual learners and institutional clients globally, while its workforce division targets employer-led skills development.
Pearson was founded in 1844 and is headquartered in London, United Kingdom.
- Pearson VUE — computer-based testing and credentialing services
- Higher Education courseware for US, Canadian, and international markets
- English language learning tools and the Pearson Test of English
- Virtual schools and online program management
- Workforce credentials including BTEC, GED, and apprenticeships
Is PSO a Good Stock to Buy?
UQS Score rates PSO as Below Average overall, reflecting meaningful headwinds across several key quality dimensions.
Valuation stands out as the most constructive element of PSO's profile, rated Attractive — suggesting the market may already be pricing in the company's challenges. Quality and Risk both land at Neutral, meaning the business is not in acute financial distress and maintains a degree of operational stability.
Both the Moat and Growth pillars are rated Weak, pointing to limited competitive insulation and a lack of clear near-term expansion momentum — the two factors most critical for long-term compounding.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does PSO pay dividends?
Yes — Pearson plc pays a dividend.
Pearson pays a regular dividend, which may appeal to income-oriented investors. As a mature, globally diversified education business, returning cash to shareholders through dividends is consistent with the company's long-standing capital allocation approach. Investors should verify the current yield and payout schedule directly on Pearson's investor relations page, as these figures change with each reporting cycle.
When does PSO report earnings?
Pearson plc reports financial results on a regular cadence, consistent with UK-listed companies that also trade as ADRs in the US.
Pearson has been navigating a multi-year transition from print to digital products, which has weighed on revenue consistency across its Higher Education and Assessment segments. Progress has been uneven, and the Growth pillar rating reflects that trajectory.
For the most recent results and upcoming reporting dates, visit Pearson's official investor relations page at pearsonplc.com.
PSO Price History
+41.5% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Pearson plc?
Based on Pearson plc's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
PSO Long-term Outlook
The fundamental outlook for PSO is cautious. With both the Growth and Moat pillars rated Weak, the company faces structural pressure from digital disruption in education, intensifying competition from technology-native learning platforms, and declining enrollment trends in traditional higher education markets. The Attractive Valuation rating suggests downside may be partially reflected in the current price, but a re-rating would likely require demonstrated improvement in revenue trajectory or competitive positioning.
Growth drivers
- Expansion of digital and AI-assisted learning products across Higher Education
- Growing demand for professional credentialing and workforce skills programs
- International English language learning markets, particularly in Asia Pacific
Key risks
- Structural decline in print courseware and traditional higher education enrollment
- Intensifying competition from technology-first education platforms
- Currency exposure given significant non-UK revenue streams
PSO vs Peers
Pearson operates in a fragmented education and media publishing landscape alongside several established content and credentialing businesses.
NYT focuses on digital news subscriptions and consumer media rather than educational courseware, giving it a different revenue model and audience.
Wiley competes directly in academic publishing and professional education, with a strong presence in research journals and corporate learning solutions.
The Class B share structure of Wiley reflects its family-controlled governance, a contrast to Pearson's fully public ownership model.
Frequently Asked Questions
What does Pearson plc do?
Pearson is a global education company that provides courseware, assessments, and learning services. Its five segments cover higher education content, professional testing through Pearson VUE, English language learning, virtual schooling, and workforce credentials such as BTEC and GED qualifications.
Does PSO pay dividends?
Yes, Pearson pays a regular dividend. As a mature business with global operations, it has historically returned cash to shareholders through dividends. Investors should check Pearson's investor relations page for the current dividend amount and payment schedule.
When does PSO report earnings?
Pearson reports financial results on a regular cadence as a UK-listed company with US ADR trading. For exact upcoming reporting dates, refer to the investor relations section at pearsonplc.com.
Is PSO a good stock to buy?
UQS Score rates PSO as Below Average, driven by Weak ratings in both the Moat and Growth pillars. The Valuation pillar is rated Attractive, which may interest contrarian investors, but the overall profile suggests meaningful fundamental challenges remain. The full pillar breakdown is available to Pro members.
Is PSO overvalued?
Based on the UQS Valuation pillar, PSO is rated Attractive — meaning the stock does not appear expensive relative to its fundamentals. However, an attractive price alone does not offset concerns in other areas; see the full analysis for context.
How does PSO compare to its competitors?
Among its closest publicly traded peers — including John Wiley & Sons — Pearson is distinguished by its scale in standardized testing and global English language learning. However, its Moat pillar rating of Weak suggests its competitive advantages are not as durable as investors might hope.
What is PSO's market cap bracket?
Pearson plc is classified as a mid-cap company. This places it in a range where institutional coverage exists but the stock may receive less attention than large- or mega-cap peers in the education and media sector.
Who founded Pearson plc?
Pearson traces its origins to 1844, when it was founded as a construction and engineering business in the UK. Over subsequent decades it transformed into a media and education company. Detailed founding history is widely available through public sources and Pearson's own corporate history pages.
Is PSO a long-term quality investment?
As a long-term quality indicator, PSO's UQS profile raises caution. Weak Moat and Growth ratings suggest the business has not demonstrated the durable competitive advantages or consistent expansion typically associated with compounding long-term returns. The Neutral Quality and Risk ratings provide some stability, but the overall picture warrants careful consideration.
What is the main competitive advantage of Pearson plc?
Pearson's scale in standardized testing — particularly through Pearson VUE — and its long-standing relationships with educational institutions provide some differentiation. However, the UQS Moat pillar rates this advantage as Weak, reflecting growing competition from digital-native platforms and declining barriers to entry in content publishing.
What sector does PSO belong to?
PSO is classified under the Communication Services sector. Within that broad sector, Pearson sits in the education and publishing sub-segment, alongside academic publishers and credentialing businesses rather than traditional media or telecom companies.
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Pro Analysis
PSO — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 44.0 | 42.9 | 34.0 | 29.3 | 48.2 | 78.2 | +0.2 |
| May 21, 2026 | 43.8 | 42.7 | 34.0 | 29.3 | 48.2 | 77.2 | 0.0 |
| May 19, 2026 | 43.8 | 42.7 | 34.0 | 29.3 | 48.2 | 76.8 | -0.4 |
| May 16, 2026 | 44.2 | 43.4 | 34.0 | 29.3 | 48.2 | 78.7 | -0.4 |
| May 4, 2026 | 44.6 | 43.4 | 34.0 | 28.8 | 48.2 | 82.0 | 0.0 |
| May 3, 2026 | 44.6 | 43.4 | 34.0 | 28.6 | 48.2 | 82.0 | -0.1 |
| Apr 26, 2026 | 44.7 | 43.4 | 34.0 | 28.6 | 48.2 | 82.8 | 0.0 |
| Apr 19, 2026 | 44.7 | 43.4 | 34.0 | 28.6 | 48.2 | 82.5 | +0.1 |
| Apr 18, 2026 | 44.6 | 43.4 | 34.0 | 27.9 | 48.2 | 83.2 | +0.2 |
| Apr 14, 2026 | 44.4 | 43.4 | 34.0 | 27.9 | 48.2 | 81.7 | -0.1 |
PSO — Pillar Breakdown
Quality
— 42.9/100 (25%)Pearson plc has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 29.3/100 (20%)Pearson plc faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 48.2/100 (15%)Pearson plc has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 78.1/100 (15%)Pearson plc appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 34/100 (25%)Pearson plc operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PSO.
Score Composition
Financial Data
More Stock Analysis
How is the PSO UQS Score Calculated?
The UQS (Unified Quality Score) for Pearson plc is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Pearson plc's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Pearson plc is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.