Pearson, the FTSE 100 education company, has transformed from a sprawling conglomerate into a focused digital learning provider, with its strategy finally showing results. First-half revenues in its virtual learning division rose 19% due to higher enrolments and new virtual schools. The company is leveraging the AI boom with study tools driving engagement in higher education and securing enterprise AI skilling contracts with tech giants like Microsoft, Amazon Web Services, and Google Cloud.

Pearson aims for mid-single-digit underlying revenue growth and sustained margin improvement. Its assessment and qualifications arm returned to growth in Q2 after losing a New Jersey contract last year, though English language learning sales fell 3%. Despite risks including AI disruption and falling US higher education enrolments, shares have risen nearly a fifth this year.

Tom ap Simon, Pearson's US-based president of virtual learning, sold about $1.96 million worth of shares via American depositary receipts on August 10.