Reskilling Momentum Supports the Growth Algorithm

Pearson delivered a strong Q3, with A&Q growth accelerating to 10%, supported by Pearson Professional Assessments where 9M growth rose to 7% from 3% in H1, reflecting growing demand for AI-driven skills assessment and certification, with new contracts including Google and leading LLMs. Virtual Learning enrolments grew 8% versus a 2.5% decline at Stride, reinforcing Pearson's competitive position; we forecast a ~9.5% revenue CAGR for the division over the next four years. The announced reorganisation from five segments to four makes strategic sense, giving a clearer split between Enterprise and Education, simplifying internal operations and external reporting. ELL/PTE remains the main weakness and Higher Education stays subdued, with Q3 underlying revenue up 2%. FY26 guidance is unchanged;