Pearson posts 6% Q3 revenue growth as it prepares major business restructure

The education group will move to four business units in January 2027, with Kate Eberle Walker joining to lead US Higher Education amid growth in virtual learning and AI skills assessment

Pearson reported 6% underlying revenue growth in Q3 2026 and announced plans to reorganize into four business units from January 2027, alongside a leadership change in US Higher Education.

Pearson has reported 6% underlying revenue growth for the third quarter of 2026 and announced a major restructuring of its global education business, creating four customer-focused divisions as it increases investment in assessment, workforce skills and digital learning.

The company's nine-month trading update shows underlying revenue rising 5% over the first nine months of the year, with growth accelerating in the third quarter. Assessment and Qualifications recorded the strongest quarterly increase at 10%, followed by Virtual Learning at 13%.

The results accompany a broader organizational overhaul that will take effect on January 1, 2027, separating Pearson into US K12, US Higher Education, UK & International Education, and Enterprise business units.

Pearson has also confirmed a leadership change in its higher education operations, with Kate Eberle Walker joining on December 1 to lead the newly formed US Higher Education division. She succeeds the outgoing Tom ap Simon, currently President of Higher Education and Virtual Learning, who will remain with the company into early 2027 to support the transition.

Virtual Learning revenue rises 13% as school enrollment grows

Pearson's Virtual Learning division delivered 13% underlying revenue growth in the third quarter and 17% across the nine-month period, supported by increased enrollment for the 2026/27 academic year.

Fall semester enrollment rose 8%, while the company opened five additional virtual schools, bringing its network to 46 schools across 32 US states. The additions included Pearson's first school in North Carolina.

Higher Education recorded more modest growth of 2% in both the third quarter and nine-month period.

Within that division, Inclusive Access revenue increased 20% over the first nine months, while US courseware performance helped offset declines in the K12 segment, where Pearson reported delayed adoptions and funding pressures.

English Language Learning remained under pressure, with revenue declining 5% in Q3 and 4% over nine months. Pearson attributed the performance partly to difficult market conditions affecting its Pearson Test of English business, including migration policy restrictions and geopolitical disruption.

The company's institutional English language operations continued to grow, supported by new courseware introduced for Ministry of Education reforms in Italy, Poland and Spain, alongside a partnership with Squirrel Ai.

AI assessment and workforce skills drive Pearson's enterprise strategy

Assessment and verification remain central to Pearson's restructuring, with the company seeking to strengthen its position in professional qualifications, enterprise training and AI skills certification.

Assessment and Qualifications revenue increased 10% in Q3 and 4% over nine months, supported by new contracts and demand for skills verification.

Pearson Professional Assessments reported 7% revenue growth over the nine-month period, with the company identifying a new global certification program with Anthropic among its recent contract launches.

The company has also completed its acquisition of assessment technology provider Internet Testing Systems (ITS), bringing an existing partner's technology in-house to strengthen remote testing, proctoring, performance-based assessment and continuous certification.

Pearson's planned acquisition of Workera, an AI-powered enterprise skills assessment platform, is expected to complete before the end of 2026. The transaction will add skills intelligence and workforce assessment capabilities to its enterprise business.

Enterprise Learning & Skills revenue increased 6% in Q3 and 7% across the nine-month period, supported by vocational qualifications and enterprise partnerships.

Pearson has also introduced Career Studio for School and Career Studio for Work, products designed to connect career exploration, skills development and industry-recognized credentials.

Omar Abbosh, Pearson's Chief Executive, says the company's acquisition strategy and organizational changes are intended to support further growth:

“We are strengthening our portfolio through two high-quality acquisitions that will enhance our core assessment and verification capabilities and accelerate our strategy to support enterprises in developing, assessing and verifying the skills needed in an AI driven economy.”

Four business units to replace existing structure in 2027

The restructuring will reorganize Pearson's operations around four larger business units, with the company aiming to improve accountability and align products more closely with customer requirements.

Based on 2025 revenue, US K12 represents approximately £1.2 billion of business, followed by Enterprise at £1 billion, UK & International Education at £800 million and US Higher Education at £600 million.

The changes are expected to generate approximately £50 million in one-off restructuring costs across 2026 and 2027, with around half of that amount classified as non-cash costs. Pearson says savings generated by the changes will be reinvested in the business.

The appointment of Kate Eberle Walker forms part of the new structure. She brings more than 25 years of education and technology leadership experience, most recently serving as CEO of Presence, a provider of special education technology and teletherapy services.

Her previous roles include CEO of The Princeton Review and leadership positions at Kaplan and Tutor.com.

Despite the stronger quarterly performance, Pearson has maintained its expectation of mid-single-digit underlying revenue growth for the full year.

The company has narrowed its forecast for 2026 adjusted operating profit to £650 million–£675 million, compared with its previous range of £640 million–£685 million, using exchange rates from the end of 2025.

Pearson's new business structure takes effect on January 1, 2027, with its full-year preliminary results scheduled for publication on February 25, 2027.

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