PSO | Market Cap: $11.2B (07/13/26)
Industry:
Consumer Services
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DESCRIPTION

Pearson is a global education company built around assessments and credentialing. Its core business — and the majority of its profit — comes from administering and scoring tests for governments, institutions, and enterprises. Pearson VUE, the flagship product, operates a global network of roughly 20,000 secure testing centers that deliver professional and IT certification exams on behalf of clients like Google, Salesforce, and ACCA, who pay Pearson to run the testing infrastructure. Beyond VUE, Pearson administers standardized tests for U.S. state governments, sells psychological assessment tools (like the Wechsler Intelligence Scale) to clinicians, and runs vocational qualification programs like BTEC in the U.K. A second major business, Virtual Learning, operates 42 online K-12 schools across the U.S. (Connections Academy), funded through per-pupil state education dollars with high fixed-cost operating leverage. Pearson also sells digital courseware and homework tools (MyLab, Pearson+) to U.S. colleges and universities, and offers English language tests and teaching materials globally. Two growth priorities sit on top of this core: enterprise skilling — selling assessments, credentials, and learning content directly to large corporations including Amazon, Microsoft, and Google under multi-year contracts — and early careers education, anchored by the 2025 acquisition of eDynamic Learning, the largest digital career and technical education courseware provider for U.S. high schools. Pearson sells primarily to institutional customers — governments, universities, and enterprises — and earns revenue through long-term contracts, per-test fees, enrollment-based funding, and software subscriptions.

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