Canon PowerShot flagship compact camera rumored to launch with brand new sensor

While Canon launched the PowerShot V1 ($899 on Amazon) in 2025, an exciting compact camera with a huge 1.4-inch sensor, this model is primarily aimed at videographers. For photographers, on the other hand, Canon has only reissued the six-year-old PowerShot G7 X Mark III as a limited edition, Canon has not offered any new hardware in this segment for years.

Now that the market for high-quality compact cameras has been growing again in recent years, Canon is finally set to develop a new flagship compact camera for photographers. According to the latest information from CanonRumors, this PowerShot camera will be launched in 2026, probably between the end of August and October, so that it is available in time for the Christmas season.

Excitingly, Canon is said to be developing a brand new sensor for this compact camera, which is reportedly slightly smaller than the sensor in the PowerShot V1 - suggesting a 1-inch format sensor. This sensor will then be used in several compact cameras, including a successor to the G7 X Mark III and a PowerShot SX compact camera with a particularly long zoom range. CanonRumors assumes that this new compact camera will cost between $800 and $1,000, but no further details on the features are known yet. It therefore remains to be seen whether Canon will include features such as an electronic viewfinder, a fold-out display or a flash.