Pearson PLC (LSE:PSON) shares climbed 5% in early trading after the company reported interim results showing steady progress against its medium-term strategy and kept 2025 guidance unchanged.
The education group’s sales rose 2% on an underlying basis to £1.72 billion for the first half, with each business line performing broadly as expected.
Adjusted operating profit also increased 2% to £242 million, and free cash flow surged by £129 million to £156 million, helped by a one-off State Aid tax recovery.
Operationally, Pearson reported ongoing success with new strategic partnerships, including collaborations with Microsoft, AWS, Google Cloud and McGraw-Hill, while its enterprise and digital products continue to gain traction.
Notable highlights included growth in Higher Education, resilient cash generation, and continued innovation with new AI-powered tools and product launches.
The company increased its interim dividend by 5% to 7.8p per share and has nearly completed half of its £350 million share buyback.
Despite currency headwinds and a challenging backdrop in some markets, management remains confident of a stronger second half, with a return to growth in Virtual Learning and continued momentum in the core business.
Pearson’s balance sheet remains healthy, supporting further investment and shareholder returns.
The shares rose 53p to 1,125.5p.