Pearson: A Stock To Watch As Margins Expand

Pearson (PSO) is leveraging AI-driven efficiency and digital transformation to drive sustained margin expansion and free cash flow growth. PSO's adjusted operating profit grew 6% in FY 2025, outpacing 4% revenue growth, with margins expanding to 17.2% and further improvement guided for FY 2026. Enterprise Skilling and Early Careers segments are positioned as multi-year growth drivers, underpinned by recurring, contract-based revenues and strategic tech partnerships.