Pearson Reports Mixed FY24, Expands Partnership With Amazon

Pearson, Plc PSO shares are trading higher premarket on Friday after the company disclosed the expansion of its partnership with Amazon Web Services, Inc. to accelerate AI-driven learning solutions.

This collaboration seeks to enhance the learning experience for millions worldwide by leveraging cloud and AI tools to personalize education and provide real-time insights.

Through this partnership, AWS and Pearson will work together to drive the adoption of technology-driven education, aiming to make learning more effective, efficient, and accessible.

Pearson plans to expand its use of AWS cloud infrastructure and AI capabilities, including Amazon Bedrock, to further optimize and scale its learning products and services, particularly in higher education.

Additionally, Amazon and AWS will strengthen their partnership with Pearson VUE to expand cloud training and credentialing, helping organizations drive productivity and accelerate innovation.

Pearson CEO Omar Abbosh said, “As technology transforms the way we learn, improving people’s ability to learn is vital for an adaptive workforce.”

”With the help of AWS, Pearson will be able to get there faster, scale personalized learning, and create more access to AI tools for learners and educators. This partnership brings together two respected and leading companies in the fields of technology and learning.”

Also, in a separate release, the company reported underlying sales growth of 3% in FY24, excluding OPM and the Strategic Review businesses.

Adjusted EPS increased by 7%, while revenue decreased on a Statutory basis.

For 2025, the company expects a positive outlook for 2025 in line with market expectations.

Beyond 2025, Pearson expects a mid-single-digit compound annual growth rate (CAGR) in underlying sales, sustained margin improvement with an average increase of 40 basis points per year, and strong free cash flow conversion, averaging between 90% and 100% over the period.

Omar Abbosh, Pearson’s Chief Executive, said, “We are pleased to announce our intention to commence a £350m share buyback programme. This initiative underscores our strong cash position and confidence in Pearson’s future.”

Price Action: PSO shares are up 0.83% at $17.00 premarket at the last check Friday.

Read Next:

Photo via Shutterstock.