What Investors Should Expect From Power Corporation Heading Into 2026

Power Corporation (PWO) is one of those companies that rewards investors who look beneath the surface. At first glance, it can seem like a quiet holding company tucked behind well-known brands. In reality, it oversees some of the most important financial platforms in Canada. Great-West Lifeco, IGM Financial, and its alternative asset businesses form the engine of a structure built for stability. The market often underestimates how these pieces work together, but long term shareholders understand the appeal. Power Corporation is designed to compound slowly and steadily without needing constant reinvention.

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This past year showed how that structure works in real time. While markets moved through rate changes, shifting sentiment, and a rocky backdrop for asset managers, Power Corporation held its footing. Its diversified mix of insurance, wealth management, and alternative investing creates a buffer that smooths results from quarter to quarter. That stability helped the stock climb steadily throughout 2025, making it one of the more consistent performers in the Canadian financial sector. For a company built around compounders, this is exactly the kind of environment where it shines.

The question for investors now is whether that steady climb sets up Power Corporation for a stronger 2026. The building blocks are clear. Lifeco continues to deliver reliable earnings. IGM has stabilized its flows. The alternative asset platforms are improving. The company is returning capital through dividends and buybacks. As these elements continue to blend, Power Corporation’s role as a long-term anchor becomes more compelling. Understanding how each part contributes helps clarify the path ahead.

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Financial Story

POW delivered a 58.1 percent price return over the past year, translating into a 69.7 percent CAGR. The stock moved in line with the holding company model: steady climbs, limited drawdowns, and a clear upward trend supported by consistent earnings from its core subsidiaries. Investors responded to strong results out of Great-West Lifeco and improving conditions at IGM Financial, both of which contributed meaningfully to consolidated profit. As these holdings stabilized, the stock gained momentum.

The climb in the second half of the year came as investors priced in improved visibility across all major business lines. Insurance remained resilient, wealth management showed signs of recovering flows, and alternative investments stabilized after a volatile period. Together, these shifts helped the stock move higher in a pattern that looked more like a long-term re-rating than a short squeeze or temporary bounce. For a company like Power Corporation, where value compounds quietly over time, that measured upward trend carries weight.

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Broader Market Context

The backdrop for financial holding companies in Canada looked clearer through 2025. Rate uncertainty eased, credit quality held up, and wealth management flows improved after a tougher stretch. These shifts helped companies tied to insurance and asset management regain momentum. Great-West Lifeco performed well in that environment. IGM Financial benefited from more stable markets and improving investor sentiment. These trends supported Power Corporation’s consolidated results, which in turn strengthened its long term outlook.

Alternative asset managers faced a more nuanced environment. Private credit and private equity platforms navigated a mix of opportunities and headwinds, but the path forward looks steadier than a year ago. Power Corporation’s exposure through Sagard and Power Sustainable gives it long-term optionality without pushing the company into higher risk territory. Across all segments, the broader context remains constructive for a diversified financial holding company heading into 2026.

1. Lifeco Remains the Core Earnings Engine

Great-West Lifeco continues to drive most of Power Corporation’s earnings. The insurer benefits from a mix of stable premiums, strong capital ratios, and consistent investment income. Its diversified footprint across Canada, the United States, and Europe gives it a cushion against localized volatility. Lifeco’s ability to hold margins steady, even during periods of rate shifts, reflects the strength of its operating model. That stability flows directly into Power Corporation’s results and forms the bedrock of its long-term value.

Heading into 2026, the outlook for Lifeco appears steady. Normalizing claims, stable credit trends, and better asset yields support its earnings profile. The company’s ongoing digital investments and cost discipline add incremental strength. For Power Corporation shareholders, Lifeco’s consistency is a core part of the story. It provides predictable cash flow, reliable dividend contributions, and a foundation that allows the broader holding company to maintain a stable balance sheet and long-term focus.

2. Wealth Management Is Stabilizing After a Tougher Period

IGM Financial faced a challenging backdrop last year as market volatility slowed investor flows. That environment improved as 2025 progressed. Asset levels recovered, client activity increased, and sentiment across retail wealth stabilized. These signs show up in Power Corporation’s consolidated numbers. IGM still operates in a competitive landscape, but its dependable client base and strong brand create a stable floor for its earnings. Even a modest recovery in flows can yield a meaningful contribution to the holding company.

Looking into 2026, wealth management may see a healthier environment. More stable markets and improved investor confidence often support fee-based businesses. IGM has worked to simplify its offerings, improve digital engagement, and strengthen advisor tools. These steps help it stay competitive even in slower cycles. For Power Corporation, a steadier IGM provides another stream of predictable cash flow that complements Lifeco and reduces overall earnings volatility.

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3. Alternative Investments Offer Optionality and Long Term Upside

Power Corporation’s alternative asset businesses, including Sagard and Power Sustainable, add a layer of optionality that does not define the company’s performance but does shape its long-term potential. These platforms handle private credit, venture capital, infrastructure, and sustainable investments. While these areas experienced uneven results across 2024 and early 2025, they showed signs of stabilization as markets adjusted to the new rate environment. Over time, successful exits and disciplined fund management can create tangible value for the holding company.

As these platforms mature, they offer diversification beyond traditional insurance and wealth management. Their contribution to net asset value may vary from year to year, but they strengthen Power Corporation’s overall portfolio. The company has been selective and patient in building these businesses. That patience may become an advantage as capital markets normalize. For shareholders, these alternative platforms represent long term upside that does not compromise the company’s stability.

The TIKR Takeaway

TIKR makes Power Corporation’s structure easy to understand. By viewing multi-year data for Lifeco, IGM, and the alternative platforms alongside consolidated metrics, the company’s consistency becomes clear.

The long-term picture looks stable, supported by predictable earnings engines and thoughtful capital allocation. When you step back and read these trends through TIKR’s financial, valuation, and segment breakdowns, the story aligns with what long-term holders already know. Power Corporation benefits from a structure that compounds quietly and works best over multi-year periods.

Should You Buy, Sell, or Hold Power Corporation’s Stock in 2025?

The stock’s strong run makes valuation an important consideration, but the underlying businesses remain steady. Lifeco continues to deliver reliable earnings; IGM is stabilizing; and the alternative platforms offer long-term upside. For investors looking for a stable financial compounder with diversified earnings and meaningful capital returns, Power Corporation remains a solid long-term choice.

How Much Upside Does Power Corporation Stock Have From Here?

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!