Pearson PLC (LSE:PSON) shares fell 3% to 1,140p as the education specialist said it is on track to meet full-year guidance, but first-quarter showed weakness in virtual and English language learning, with stronger sales growth anticipated in the second half.
Group sales rose 1% on an underlying basis in Q1 2025, with all business units performing in line with forecasts. Higher Education led the way, with a 6% increase in sales, supported by AI-powered study tools, growth in digital subscriptions, and broader adoption of Inclusive Access products.
Assessment & Qualifications also rose 1%, with stronger momentum expected later in the year. Pearson VUE was slightly lower, while Clinical Assessment and International Qualifications both made gains.
Virtual Learning and English Language Learning both declined by 4% and 6% respectively, though this was consistent with previous guidance. The company said it expects improvements in the coming quarters.
In Enterprise Learning & Skills, sales rose 1%, supported by new contract wins, including a partnership with the UK Ministry of Defence.
Pearson launched several new offerings during the quarter, including the Pearson Skilling Suite and an AI-powered Smart Lesson Generator. The group also redefined its corporate brand as part of its strategic focus on the future of learning.
Chief executive Omar Abbosh said: “We are confident of delivering on our expectations for the year given our clear path to achieving stronger growth in the second half.”
Pearson also confirmed a £350 million share buyback is underway, with £65 million repurchased by the end of April. The company recovered £0.1 billion in State Aid during the quarter.
In a leadership update, chief technology officer Dave Treat has taken over the wider digital and technology function following the departure of chief information officer Marykay Wells.