Welcome to our dedicated page for Pearson plc news (Ticker: PSO), a resource for investors and traders seeking the latest updates and insights on Pearson plc stock.
Pearson plc, headquartered in London, England, is a British multinational publishing and education company. Founded in the 1840s, Pearson initially started as a construction business but pivoted to publishing in the 1920s. Today, it stands as the world’s largest education company, serving customers in nearly 200 countries with digital content, assessments, qualifications, and data.
Historically known for its extensive involvement in the publishing industry, Pearson has strategically divested non-core assets such as the Financial Times, The Economist, and Penguin Random House to focus on education and testing services. The company’s primary activities include higher education, clinical assessments, professional certification, and testing services.
In recent developments, Pearson has introduced advanced AI study tools across its Pearson+ eTextbooks. These tools, which generate explanations, summaries, and practice questions, have been well-received by students and educators alike. Over 40 titles in subjects such as math, science, business, and nursing are set to feature these tools by the fall of 2024, further enhancing the learning experience.
Moreover, Pearson has expanded into the esports education sector through a continued partnership with British Esports. This collaboration has led to the launch of higher-tier BTEC qualifications in Esports, providing clear progression pathways into the lucrative esports industry for students globally.
Pearson is also making significant strides in workforce assessment solutions through its subsidiary, PDRI. At the Society for Industrial and Organizational Psychology (SIOP) Annual Conference, PDRI's CEO, Dr. Elaine Pulakos, will co-lead workshops and present on panel discussions, emphasizing the importance of evidence-based assessment solutions in talent management.
In the realm of certification, Pearson VUE has partnered with SAE International to deliver the Electric Vehicle Supply Equipment (EVSE) Technician Certification. This initiative aims to address the shortage of qualified EV technicians and supports the growing EV infrastructure globally.
With a strong commitment to innovation and quality education, Pearson continues to play a pivotal role in shaping the future of learning and professional certification. For more information, visit Pearson plc.
Pearson (PSO) reported 3% underlying Group sales growth for 2024 (excluding OPM and Strategic Review businesses), with adjusted operating profit of £595-600m at £:$ of 1.28, representing a ~10% increase from 2023. The company achieved a margin of ~16.8% (up from 15.6% in 2023) and free cash flow conversion exceeded 100%.
Key performance highlights include: Assessment & Qualifications up 3%, Higher Education grew 1%, English Language Learning increased 8%, and Workforce Skills rose 6%. Virtual Learning declined 4% due to OPM ASU contract completion. The company announced a new strategic AI partnership with Microsoft and is evolving its Workforce Skills unit to become Enterprise Learning and Skills, focusing on enterprise customers.
The company maintains a strong financial position with net debt under £0.9bn and appointed Naseem Tuffaha as Chief Business Officer.
Pearson (PSO) and Microsoft (MSFT) announced a strategic partnership to address AI skilling challenges in the workforce. The collaboration combines Pearson's learning expertise with Microsoft's cloud and AI technologies to develop new AI-powered products and services.
Key aspects of the partnership include: Pearson leveraging Microsoft Azure Cloud and AI infrastructure to scale personalized learning services; development of new AI credentials and certifications; extension of Pearson VUE's Microsoft certification partnership through 2029; and Pearson's deployment of Microsoft 365 Copilot across its workforce.
The partnership addresses critical market needs, as IDC research shows lack of skilled workers is the biggest challenge for AI implementation, with 66% of leaders unwilling to hire candidates without AI skills. Pearson's research indicates generative AI could save U.S. workers 78 million hours weekly on routine tasks.
Pearson (PSON.L) and the Centre for Economics and Business Research (Cebr) released a report showing that a £130 million annual investment in school technology over the next decade could generate up to £8.7 billion in economic benefits for the UK, with a return of £7.90 for every £1 invested.
The analysis focuses on three key areas: device provision, broadband improvement, and teacher training. Key benefits include:
- £900 million in teacher time savings in the first year
- £200 million in additional earning potential by year 10
- £180 million in economic productivity benefits by year 10
- Two million kg of CO2E savings by year 10
Current challenges include insufficient device provision in schools (only 34% of secondary and 31% of primary schools have adequate devices), slow internet speeds, and teacher training in digital skills. Pearson plans to launch a Digital in Schools project in 2025 to help unlock EdTech benefits.
Pearson (PSON.L) released new insights showing increased AI adoption in higher education. Students using Pearson's AI tools are 4x more likely to engage in active studying, with an 11-percentage-point increase in students reporting better grades and study efficiency. Usage data reveals that students using AI-generated flashcards were nearly 3x more likely to return and practice.
The analysis shows 38% of student inputs demonstrate higher cognitive complexity, while 25% involved critical thinking skills. AI sessions in MyLab and Mastering increased 95% from fall 2023 to 2024. Faculty adoption is also growing, with 77% of surveyed educators envisioning AI integration in teaching methods, particularly for generating examples, providing tutoring services, and developing instructional content.
Pearson reported positive Q3 2024 performance with 5% underlying sales growth, resulting in 3% growth for the nine-month period. All divisions delivered growth in Q3, including Higher Education up 4%, Assessment & Qualifications up 6%, Virtual Learning up 4%, English Language Learning up 2%, and Workforce Skills up 6%. The company signed a new multi-year enterprise deal with ServiceNow and expanded partnership with Degreed. AI initiatives showed progress with double-digit year-over-year billings growth in Higher Education products featuring AI study tools. The company completed its £500m share buyback, issued a £350m Educational Bond, and maintains a strong financial position with Moody's upgrading its rating to Baa2.
Pearson's Skills Map U.S. predicts 1.9 million new jobs will be created through 2028, despite automation, AI, and demographic shifts reshaping the job market. The report, based on an analysis of 85 million U.S. job ads, emphasizes that all jobs are becoming 'tech jobs' as businesses integrate advanced technologies.
Key findings include:
- Technology expertise will be in high demand across all sectors
- Human skills remain essential
- Upskilling and reskilling will be critical
The report focuses on the 'Three A's' - automation, AI, and an aging population - as key drivers of change. It highlights the growing importance of blending technical expertise with industry-specific skills and the need for businesses to rethink workforce strategies.
Pearson has launched a Generative AI Foundations certification to address the growing demand for AI skills across industries. The program, developed by Certiport, a Pearson VUE business, aims to equip professionals and students, including high schoolers, with essential skills for working with generative AI technologies. The certification is part of Certiport's Critical Career Skills portfolio and was created in partnership with Mindstone, a global leader in AI training.
The certification will be available from October 1 through Mindhub and Certiport, with flexible purchasing options. It will validate proficiency in key areas such as understanding generative AI methods and models, mastering prompt engineering basics, and grasping the societal impact of AI. According to the 2024 Work Trend Index Annual Report, 66% of business leaders would not hire candidates lacking AI skills, highlighting the importance of such certifications in the current job market.
Pearson's Connections Academy has expanded its college and early career program to over 20 schools, now covering more than half of its supported schools in the US. This expansion provides tens of thousands of middle and high school students with opportunities to earn college credits and industry certifications. The program's tri-credit approach offers high school credit, industry-recognized micro-credentials, and eligibility for college credit towards US bachelor's degree programs.
The initiative has doubled career partnerships, increasing students' exposure to industry experiences. New partnerships include Future Business Leaders of America, The Home Depot, HOSA-Future Health Professionals, and the SEMI Foundation. The program also provides access to career assessments, post-secondary planning, career coaching, and engagement with professionals in STEM, film, and creative careers.
Pearson's GED Testing Service announces the first National GED Day on September 16, 2024, celebrating GED achievements and non-traditional educational pathways. This initiative aims to recognize GED learners, educators, and supporters, highlighting the importance of adult education in opening doors to higher education and career prospects.
With over 40 million adults lacking a high school diploma, GED Testing Service serves 700,000 learners annually. The day encourages involvement through social media engagement, sharing personal journeys, and community college outreach. Since 1942, the GED test has helped over 21 million graduates access better jobs and college programs, emphasizing its role in promoting lifelong learning and equal opportunities for all.
Pearson (FTSE: PSON.L) has launched new AI-powered higher education tools to enhance personalized learning for college students. Available through Pearson+ Channels, these tools include:
1. Personalized study and exam prep: Generates custom learning plans based on course syllabi.
2. Interactive video learning: Allows students to ask questions during video lessons.
3. Expanded AI study tools: Provides problem-solving assistance and unique content.
These features complement Pearson's existing AI tools used by over 2 million students at 1,000+ institutions. The company aims to improve student performance and create a more engaging experience for both students and faculty through responsible AI application.
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