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Pearson launches £350m share buyback, reiterates outlook

(Sharecast News) - Educational publishing and services group Pearson has announced that it will kick off a new £350m share buyback programme as it reiterated confidence in meeting analysts' expectations this year. The new repurchase programme, which will see the company buy back £175m of shares by the middle of May before repurchasing the remaining £175m "in due course", follows a similar £350m buyback programme completed in August 2025.

"The sole purpose of the programme is to reduce the capital of the company. As such, the company will cancel any ordinary shares purchased," Pearson said.

The announcement comes just a week after Pearson's pre-close trading update for 2025, in which it reported underlying sales rose 4% over the year, accelerating to 8% in the fourth quarter. It also said its financial position remained "robust with a strong balance sheet".

In a brief statement to the market on Wednesday, the firm said it "enters 2026 with momentum and confidence in delivering against market expectations and medium term outlook".

Company-compiled consensus currently points to 4.8% organic revenue growth at constant currency over 2026, with an adjusted operating profit of £658m, up from an estimated £612m in 2025.

Pearson noted that consensus forecasts currently assume £70m in interest charges for 2026, though these are now expected to increase due to the funding of the new share buyback.

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