Pearson PLC (LSE:PSON) will offer up a full-year trading update on Wednesday, 17 January after artificial intelligence has rapidly become a key point of focus for the education industry.
What's more, Wednesday’s report will be the first since fresh chief executive Omar Abbosh stepped up to the role earlier in January.
Deutsche Bank analysts kicked Pearson from a ‘buy’ rating to a ‘hold’ prior to the results, suggesting clarity would be awaited on the new chief executive’s mid-term plans.
This followed previous notes from Deutsche seeking clarity on the FTSE 100-listed tuition group’s artificial intelligence strategy.
Pearson has rolled out beta generative AI products under this, which it said were designed to help students with challenging subjects.
As per Pearson’s third quarter update, initial engagement with such study tools had been “encouraging” and provided “valuable insights” as further models were being trialled.
Pearson previously reassured its position as a publisher of exams and learning resources meant the rise of models such as ChatGPT didn’t pose as much of a threat as it did to rivals such as Chegg - which has fallen over 55% in the past year.
Instead, Pearson said its extensive data sets meant it was well positioned to roll out educational chatbots.
Wednesday’s update will offer a glimpse into Pearson’s first full-year of operations since ChatGPT’s release and subsequent boom in late-2022, therefore.
As Deutsche noted, investors will also be hoping the report offers information on Abbosh’s plans for Pearson in the months ahead.
According to Pearson, full year adjusted operating profit should come in at £20 million above previous expectations, within a range of £570 million to £575 million.
Margins within the mid-teens are also being targeted, alongside cost efficiencies of £120 million, meanwhile.