London, Jan 14, 2026, 20:39 GMT — Market closed.
- Pearson shares fell about 9.6% in London after the company flagged a New Jersey contract loss.
- The 2025 trading update showed Q4 sales growth accelerated, but investors wanted clearer 2026 guidance.
- Focus now shifts to Pearson’s full-year results on Feb. 27 and its detailed 2026 outlook.
Pearson shares closed down 9.55% at £9.73 on Wednesday, after the education company said it lost a U.S. student assessment contract in New Jersey that will weigh on the first half of 2026. The fall made it the FTSE 100’s biggest decliner even as the index finished at a record high.
The setback matters because Pearson’s Assessment & Qualifications division is its biggest business, and U.S. testing work can hinge on periodic state tenders. Chief Financial Officer Sally Johnson said the lost New Jersey contract was worth 20 million to 30 million pounds.
Investors also pushed back at the lack of specific guidance for 2026. “In an environment with mounting concern about AI’s ability to disrupt Pearson, its latest statement didn’t offer the reassurance investors were looking for,” said Dan Coatsworth, head of markets at AJ Bell, in a note carried by Halifax. Halifax Investments
Pearson said “underlying” sales — stripping out currency swings and portfolio changes — rose 4% in 2025, with growth accelerating to 8% in the fourth quarter. It expects adjusted operating profit, which excludes one-off items, of £610 million to £615 million and said free cash flow conversion topped 95%. The update also pointed to an AI “Communication Coach” tool integrated into Microsoft 365, a partnership with IBM and new credentials work including Google Cloud certifications. SEC
The company has also leaned into enterprise learning tie-ups. Pearson and Deloitte announced an alliance on Tuesday to develop AI-powered learning and workforce solutions for enterprises and governments, with Deloitte positioned as both collaborator and customer.
In U.S. trading, Pearson’s New York-listed ADRs were down about 9.6% at $13.02 in afternoon dealings, mirroring the London move.
For the next London session, traders will watch for any follow-on detail on how quickly Pearson can replace the lost New Jersey revenue and whether other assessment renewals can offset the first-half hit.
But the day’s selloff underlined the downside of a contract-heavy business. If Pearson cannot win similar state deals quickly — or if pricing tightens — the drag from New Jersey could last longer than investors currently assume.
