Power Corporation of Canada (TSX:POW) Is Up 5.8% After Posting Strong Q3 Net Income Growth - What's Changed

• Power Corporation of Canada recently reported third quarter 2025 results, revealing net income of C$716 million and basic earnings per share from continuing operations of C$1.10, both higher than the same period last year.
• This strong earnings performance highlights ongoing improvements in the company’s operations and supports the broader narrative of increased business momentum amid industry change.
• We’ll examine how this robust net income growth influences Power Corporation of Canada’s investment narrative and outlook going forward.

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Power Corporation of Canada Investment Narrative Recap

To be a shareholder in Power Corporation of Canada, you need confidence in its ability to deliver consistent long-term growth through subsidiaries like Great-West Lifeco and IGM Financial, supported by recurring fee income and an expanding presence in digital wealth platforms. The recent surge in quarterly net income and earnings per share is a positive signal, but it does not fundamentally alter the ongoing need to monitor regulatory changes and market disruption risks, which remain the most important short-term catalysts and risks to the business.

Among recent company announcements, the completion of a 2.1 million share buyback in August 2025 stands out as closely tied to the latest earnings report, reflecting management’s ongoing focus on capital returns to shareholders. While buybacks can support per-share earnings and signal confidence, their future impact will still depend on continued operational performance and the company’s ability to navigate sector-specific risks going forward.

But even with robust earnings growth, investors should pay close attention to how regulatory changes and sector disruptions could quickly impact...

Read the full narrative on Power Corporation of Canada (it's free!)

Power Corporation of Canada's outlook anticipates CA$47.0 billion in revenue and CA$3.5 billion in earnings by 2028. This scenario assumes 8.1% annual revenue growth and a CA$0.7 billion increase in earnings from the current CA$2.8 billion.

Uncover how Power Corporation of Canada's forecasts yield a CA$62.50 fair value, a 11% downside to its current price.

Exploring Other Perspectives

Five recent fair value estimates from the Simply Wall St Community place Power Corporation of Canada between C$54.77 and C$85.41 per share. While many see ongoing demand in wealth and retirement solutions as a key driver, the diversity of opinions highlights how future performance hinges on both industry inflows and evolving challenges.

Explore 5 other fair value estimates on Power Corporation of Canada - why the stock might be worth as much as 22% more than the current price!

Build Your Own Power Corporation of Canada Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Power Corporation of Canada research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Power Corporation of Canada research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Power Corporation of Canada's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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