Power Corporation of Canada (POW) Q1 2026 earnings summary

Executive summary

• Reported strong Q1 2026 results with adjusted net earnings of $905 million ($1.43/share), up 15% year-over-year, and net earnings of $820 million ($1.29/share), with robust EPS growth and significant capital returns to shareholders.

• Great-West and IGM delivered robust financial results, each contributing 21% higher adjusted earnings year-over-year, with Great-West surpassing 19% base ROE for the first time.

• Wealthsimple’s AUA rose 71% year-over-year to $124.8 billion, serving 3.4 million clients, and NAV rose approximately 90% year-over-year.

• $0.7 billion in dividends and share repurchases in Q1; $1.7 billion available cash supports further capital returns.

• Leadership transitions occurred across the group, including new CEOs at Power, Great-West Life, and IGM.

Financial highlights

• Adjusted net earnings reached $905 million, up 15% year-over-year; adjusted EPS was $1.43, up 17%; net earnings were $820 million, up 19%.

• Adjusted NAV per share was $84.54 at March 31, 2026, up 23% year-over-year; book value per share was $36.52.

• Great-West contributed $851 million and IGM $180 million to adjusted net earnings, both up 21% year-over-year.

• Returned $0.7 billion to shareholders via buybacks and dividends in Q1 2026, exceeding Q1 2025 levels.

• Publicly traded operating companies contributed $994 million to net earnings, up 32.2% year-over-year.

Outlook and guidance

• Expect continued momentum into Q2 2026, with strong cash flow and capital return priorities.

• Great-West targets 8-10% base EPS growth per annum plus a 3.5% dividend yield; IGM targets 9%+ adjusted EPS growth per annum plus a 3.2% dividend yield.

• Buybacks remain a high priority, especially with shares trading at an 18% discount to NAV.

• GBL aims for medium-term double-digit total shareholder return (TSR).

• Proprietary capital investments in Sagard and Power Sustainable target 10%+ returns.