Great-West Lifeco (GWO) AI Stock Analysis

• Market Cap: C$58.36B
• Dividend Yield: 3.62%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.32
• Revenue Growth: -20.64%
• EPS Growth: 14.88%
• Country: CA
• Employees: 33,250
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 1.36
• Shares Outstanding: 903,947,900
• 10 Day Avg. Volume: 1,022,622
• 30 Day Avg. Volume: 1,362,098
• PEG Ratio: 10.70
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 23.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$69.00
• Price Target Upside: 7.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.43
• Revenue Forecast (FY): C$5.08B

• Rating: 65 Neutral
• Price Target: C$66.00 ▲(2.84% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by mixed financial performance—stable earnings and capitalization but weaker 2025 cash conversion and operating-result volatility. Valuation and the earnings call are supportive (reasonable P/E, strong dividend, constructive guidance and capital returns), while technicals are a meaningful near-term drag due to bearish momentum and the stock trading below key moving averages.

Positive Factors

Scale & market position

Empower's >$2.0tn in client assets and Lifeco's $3.3tn total assets provide durable scale across retirement and wealth channels. Scale strengthens distribution economics, fee revenue stability, product cross-sell, and bargaining power with asset managers, supporting steady long-term earnings.

Capital generation & shareholder returns

High conversion of base earnings into free cash flow and active buybacks plus a dividend hike signal durable cash-generation discipline and a shareholder-return focus. This supports return of capital and provides flexibility to fund buybacks, dividends, or targeted investments over multiple years.

Capitalization & liquidity

Maintaining LICAT above regulatory guidance and holding sizable deployable cash alongside modest leverage gives resilience against stress. This balance-sheet flexibility supports ongoing dividends, buybacks and selective M&A while preserving insurer solvency over economic cycles.

Negative Factors

Weak 2025 cash conversion

A sharp drop in operating cash flow and materially weaker free cash flow in 2025 reduced cash coverage of earnings (~0.29x). Persistent or recurring weaker cash conversion would limit capital return capacity and increase earnings volatility given lifecycle timing of insurance cash flows and investment spreads.

Operating profitability volatility

Uneven operating margins and episodic negative EBIT underscore structural volatility in underwriting, trading and accounting across periods. Such variability challenges predictability of underwriting profits and makes medium-term operating-margin improvement and planning for investors more difficult.

Fee‑mix & net flow pressures

Large participant outflows and a lagging fee mix reduce recurring fee income and dilute operating leverage in retirement businesses. If outflows or lower-margin asset composition persist, long-run fee revenue growth and margin sustainability could be impaired despite asset scale.

Great-West Lifeco Business Overview & Revenue Model

Company Description

Great-West Lifeco Inc., a financial services holding company, engages in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the United States, and Europe. The company offers a portfolio of financial and benefit plan solutions for individuals, families, businesses, and organizations; life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance products; and retirement savings and income, annuity, and other specialty products. It also provides employer-sponsored retirement savings plans, individual retirement and taxable brokerage accounts, enrollment services, communication materials, investment options, and education services; and fund management, investment, and advisory services. In addition, the company offers private-label recordkeeping and administrative services; and investment products, including equity, fixed income, absolute return, and alternative strategies. Further, it provides protection and wealth management products, including payout annuity products; pension products; and life, annuity/longevity, mortgage surety, and property catastrophe reinsurance products. The company offers its products under the Canada Life, Irish Life, Empower, Putnam Investments, and PanAgora brand names. It distributes its products through a network of advisors, dealers, brokers, managing general agencies, financial institutions, consultants, third-party administrators, sales force, financial planners, employee benefit consultants, banks, and multi-tied agents. The company was founded in 1891 and is based in Winnipeg, Canada. Great-West Lifeco Inc. operates as a subsidiary of Power Financial Corporation.

How the Company Makes Money

Great-West Lifeco generates revenue through several key streams, primarily from premiums collected on insurance products, fees from asset management services, and investment income. The company offers various life and health insurance policies, which provide a steady inflow of premium revenues. Additionally, it manages mutual funds and other investment products, earning management fees based on assets under management. Significant partnerships with financial advisors, brokerages, and institutional clients enhance its distribution capabilities and contribute to its earnings. Investment income, derived from the company's portfolio of bonds, stocks, and other financial instruments, further bolsters its revenue, especially in favorable market conditions.

Great-West Lifeco Financial Statement Overview

Summary

Solid earnings power and improving 2025 revenue (+44.6% YoY) with a stable capital base and moderate leverage, but operating profitability and comparability are uneven (negative EBIT in 2023–2024; unusual 2022 revenue print). Cash conversion weakened sharply in 2025 (operating cash flow down to ~$2.7B; thinner coverage vs. net income), adding volatility risk.

Income Statement

Revenue rebounded strongly in 2025 (+44.6% YoY) after a flat-to-down 2024, and net income has been consistently positive across the period (~$2.9B–$4.1B). Profitability looks solid in 2025 with an ~8.4% net margin and ~10.3% EBIT margin, but results are volatile: EBIT was negative in 2023–2024 despite positive net income, and 2022 shows an unusual negative revenue print that signals accounting/statement variability typical in insurers and reduces comparability. Overall: good earnings power, but uneven operating profitability and noisy revenue trend.

Balance Sheet

Leverage appears reasonable for the period, with debt-to-equity generally in the ~0.35–0.45 range, and equity building over time (roughly $24.0B in 2020 to ~$29.9B in 2025). Total assets also increased materially (~$600B to ~$863B), supporting scale. The main watch item is rising absolute debt in 2025 (to ~$13.4B) and the inherent balance-sheet complexity of life insurers, but overall capitalization trends look stable.

Cash Flow

Cash generation remains positive, but weakened meaningfully in 2025: operating cash flow fell to ~$2.7B versus ~$4.8–$10.4B in prior years, and free cash flow growth was sharply negative (-46.1%). Cash flow covered net income well in 2021–2024 (operating cash flow running above net income), but 2025 shows much thinner coverage (~0.29x), indicating a tougher cash conversion year and higher volatility in cash flows.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.10B	34.72B	36.73B	-2.69B	64.45B
Gross Profit	13.13B	13.39B	11.12B	11.06B	12.93B
EBITDA	5.64B	5.93B	3.98B	4.96B	4.72B
Net Income	4.12B	4.07B	2.87B	3.73B	3.26B
Balance Sheet
Total Assets	862.83B	802.16B	713.23B	701.46B	630.49B
Cash, Cash Equivalents and Short-Term Investments	28.39B	24.71B	19.38B	18.84B	17.23B
Total Debt	13.41B	10.23B	9.65B	11.29B	9.73B
Total Liabilities	829.83B	771.01B	683.38B	669.14B	600.00B
Stockholders Equity	29.86B	29.54B	26.84B	29.01B	27.22B
Cash Flow
Free Cash Flow	2.71B	4.75B	5.20B	7.05B	10.37B
Operating Cash Flow	2.71B	4.75B	5.20B	7.05B	10.37B
Investing Cash Flow	-56.00M	-408.00M	-786.00M	-5.49B	-11.21B
Financing Cash Flow	-4.32B	-2.29B	-3.55B	-620.00M	-992.00M

Great-West Lifeco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GWO, the sentiment is Positive. The current price of 64.18 is above the 20-day moving average (MA) of 63.49, above the 50-day MA of 63.51, and above the 200-day MA of 57.68, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 87.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GWO.

Great-West Lifeco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POW	76 Outperform	C$42.17B	13.48	12.83%	3.28%	-9.03%	44.14%
IFC	74 Outperform	C$45.30B	15.12	16.27%	1.86%	2.51%	44.44%
SLF	69 Neutral	C$48.20B	12.88	14.68%	4.11%	-19.88%	-13.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MFC	66 Neutral	$78.89B	14.68	11.34%	3.49%	5.46%	10.52%
FFH	66 Neutral	C$51.67B	8.56	18.65%	0.84%	10.08%	24.18%
GWO	65 Neutral	C$58.36B	14.06	13.98%	3.62%	-20.64%	14.88%

Great-West Lifeco Corporate Events

Great-West Lifeco CEO to Discuss Strategy and 2025 Results in TD Cowen Virtual Fireside Chat

Great-West Lifeco Inc. said President and Chief Executive Officer David Harney will participate in a virtual fireside chat hosted by TD Cowen analyst Mario Mendonca on February 19, 2026, to discuss the company’s strategy and 2025 financial results. A replay of the webcast will be made available in the events section of the company’s website after the session and archived online for 90 days, offering investors and other stakeholders extended access to management’s commentary.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco Posts Record 2025 Base Earnings and Hikes Dividend 10%

Great-West Lifeco reported record base earnings for 2025, with fourth-quarter base earnings rising 12% to $1.25 billion, or $1.36 per share, driven by higher assets from market growth, strong performance in its Retirement and Wealth segments, particularly at Empower, and new business in Capital & Risk Solutions. Despite a 6% decline in quarterly net earnings to $1.05 billion and largely flat full-year net earnings, the company delivered an 18.2% base return on equity, maintained a strong LICAT ratio of 128% and $2.1 billion in cash, raised its quarterly dividend by 10% to $0.67 per share, and continued significant share repurchases, underscoring disciplined capital deployment and financial flexibility for shareholders.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Canada Life Wins 38 FundGrade A+ Awards for Mutual and Segregated Funds

Canada Life and Canada Life Investment Management Ltd. secured 38 FundGrade A+ Awards from Fundata for 2025, with four mutual funds and 34 segregated funds recognized for consistent, outstanding, risk-adjusted performance. The accolades, spanning Canadian, U.S., international and emerging markets equity as well as balanced and fixed income portfolios, underscore the strength of the firm’s investment teams and sub-advisors and reinforce its strategy to become a leading wealth provider in Canada by expanding access to advice and high-performing solutions for advisors and their clients.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco Sets February Dates for Q4 2025 Results and Earnings Call

Great-West Lifeco Inc. will release its fourth-quarter 2025 financial results after markets close on February 11, 2026, followed by an earnings conference call and webcast with company management on the morning of February 12. The scheduled disclosure and investor call underscore the company’s ongoing efforts to communicate financial performance and strategic progress to shareholders and the broader market, providing stakeholders with updated insight into the operations of one of North America and Europe’s major diversified financial services groups.

The most recent analyst rating on (TSE:GWO) stock is a Hold with a C$60.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco Announces Conversion Results for Series N Preferred Shares

Great-West Lifeco Inc. announced the result of a conversion election for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N. Holders of 6,425 Series N Shares opted to convert their shares into Series O Shares on a one-for-one basis by December 31, 2025. However, due to insufficient conversions to meet the threshold for outstanding Series O Shares, no Series N Shares will be converted to Series O Shares, and written notice will be issued to stakeholders accordingly. This decision underscores operational clarity in managing share conversions and may affect stakeholders holding Series N Shares.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$67.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco Sets Dividend Rates for Preferred Shares

Great-West Lifeco Inc. announced the dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N, and Non-Cumulative Floating Rate First Preferred Shares, Series O. The fixed dividend rate for Series N Shares is set at 4.090% per annum for the five-year period starting December 31, 2025, while the floating rate for Series O Shares is 3.518% per annum for the period starting on the same date. This announcement provides clarity on the financial returns for investors holding these shares and underscores the company’s commitment to offering competitive financial products, potentially impacting its market positioning and attractiveness to investors.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$67.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.