Pearson PLC (LSE:PSON) shares rose 3.4% in early trading as investors reacted positively to a solid set of results, in-line guidance, and stronger-than-expected cash generation.
The company, which has been reshaping itself as a technology-driven learning provider, also announced an accelerated AI rollout and a new strategic partnership with AWS, reinforcing its position at the forefront of digital education.
The tie-up with AWS will expand Pearson’s cloud and AI capabilities, enhancing its learning platforms and test preparation services.
Financially, Pearson delivered a 10% rise in adjusted operating profit to £600m, with margins improving from 15.6% to 16.9%.
Free cash flow surged to £490m, exceeding expectations, thanks to robust business performance and cost efficiencies.
The company also unveiled a £350m share buyback, building on the £500m programme completed last year, further demonstrating its financial strength.
CEO Omar Abbosh said: "We are well set up to deliver our financial guidance, allowing for further investment and attractive returns for shareholders."
Early on, the stock was up 45.5p at 1,381p.