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LONDON - Pearson (PSO), the global learning company with a market capitalization of $10.5 billion, has announced the expansion of Chief Technology Officer Dave Treat’s role to include leadership of the digital and technology operation, starting April 7. Treat, who joined Pearson nine months ago, will maintain his CTO title and continue reporting to CEO Omar Abbosh. According to InvestingPro analysis, the company maintains strong financial health with an overall score of "GOOD."
The company’s current Chief Information Officer, Marykay Wells, is set to depart on April 4 after leading the Digital and Technology team through a significant digital transformation phase. Treat’s expanded responsibilities come as Pearson aims to further develop its AI capabilities and foster innovation across its business units, building on its impressive 51% gross profit margin.
Treat’s tenure at Pearson has been marked by the creation of the AI Center of Enablement and the oversight of the Research & Development and Ventures teams. He brings nearly three decades of experience in technology innovation, including generative AI, spatial computing, Web 3, and quantum computing, and holds over 100 patents in related fields.
Abbosh praised Treat’s influence on Pearson’s growth trajectory, noting his innovative work with customers and his role in attracting talent. He also acknowledged Wells’ strategic leadership and her team’s use of generative AI in creating global platforms and solutions.
Treat expressed enthusiasm for his new role, highlighting the company’s technological advancements and his commitment to leveraging innovative technology in the learning space.
Pearson, with approximately 18,000 employees worldwide, focuses on creating learning experiences with real-life impact, serving customers in nearly 200 countries with digital content, assessments, qualifications, and data. The company has maintained dividend payments for 34 consecutive years and currently offers a 2.6% dividend yield. InvestingPro subscribers can access 8 additional key insights about Pearson’s financial performance and growth potential.
This development is based on a press release statement from Pearson.
In other recent news, Pearson PLC is set to release a trading update, with expectations to confirm its fiscal year performance in line with market projections. Analysts anticipate Pearson will report approximately 3.0% organic growth and an operating profit of around £595 million, according to Bloomberg consensus estimates. JPMorgan analyst Daniel Kerven has raised the price target for Pearson shares to GBP14.50 from GBP14.00, maintaining an Overweight rating. The analyst’s optimism is fueled by the company’s growth prospects in its US Higher Education, Workforce Skills, and Virtual Schools segments. Additionally, the recent strength of the dollar has led JPMorgan to increase its forecast for Pearson’s full-year earnings per share by 5%. As Pearson’s stock is currently trading at 17 times its estimated earnings for 2025, this is expected to decrease to 14.4 times by 2026. The company’s strong financial position, with a net debt to EBITDA ratio projected to be 0.5 times by year-end, may allow for strategic acquisitions or share buybacks. If Pearson leverages up to 2 times, it could trade at less than 13 times earnings in 2026, with potential for mid single-digit organic growth and double-digit earnings growth.
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