Pearson plc

Fundamentals7.2
Price Action5.4
News Sentiment0.0
AI Rating
6.3

Key Drivers

  • Cash Coverage
  • Debt Load
  • Intangible Drag

AI
AI Summary

6.3

Pearson looks more like a cash-generative education/skills platform than a legacy publisher as EPS and operating profit are growing faster than revenue with strong FCF covering the dividend, but with leverage rising, intangibles heavy, and the stock already rerated, the key takeaway is that upside now depends on sustained AI-driven margin execution rather than just a stable earnings beat.

CashFlow
ExecutionRisk
Valuation‍

Price Chart

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Financial Metrics

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Revenue (TTM)
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Net Income (TTM)
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EPS (Q)
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MCAP

Deep Analysis

Research tool. Not personalized advice.

Fundamental Analysis

7.2

Key Financial Insights:

  • Cash Coverage
  • Debt Load
  • Intangible Drag

PSO shows solid profitability and strong free cash flow with adequate liquidity, but higher leverage, a heavy intangible asset base, and a more demanding valuation temper the outlook.

CashFlow
Leverage

Price Behavior

5.4
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Support holding
  • Lower-highs pattern
  • Reclaim needed

PSO is in a short-term corrective phase: buyers are still defending the $16.0–$16.1 area, but lower highs and weaker momentum mean it must reclaim the mid-$16s and then $17.0 to repair the trend.

neutral
negative
Support Level: $16.00-$16.10
Resistance Level: $16.55-$16.76

Sharp push to $17.64 before fading into lower highs and lower closes

Sentiment & News

0.0

Key News Insights:

  • Guidance reaffirmed
  • Learning growth
  • AI reskilling tailwind

Pearson reported stronger H1/Q2 revenue, profit and EPS, reaffirmed full-year guidance, and signaled resilience as growth in learning and assessment offset weakness in English testing amid rising reskilling demand.

Guidance

The update is likely to support sentiment by confirming earnings momentum and long-term upskilling exposure, though English-language testing remains a drag on growth