A three-dimensional piezoelasticity based iterative analytical solution is presented for the multiphysics problem of free edge stresses in hybrid composite panels integrated with piezoelectric transducer layers. The formulation, applicable for general laminate configurations with arbitrary layup and materials properties, considers extension, bending, twisting and electric field actuation loadings with full electromechanical coupling. A mixed formulation approach based on the Reissner-type mixed variational principle is adopted to ensure exact point-wise satisfaction of all boundary and interlaminar continuity conditions, which is key to obtaining accurate results for the localized stresses near free edges. The solution is obtained using the recently developed mixed-field multiterm extended Kantorovich method, whose robustness, convergence and accuracy are illustrated for various laminates and loadings. The solution successfully captures singular nature of free edge interlaminar stresses under different loadings. The results show a significant effect of electromechanical coupling on the free edge stresses in hybrid laminates under mechanical loading. The effect of actuator thickness on the interfacial stress distributions under electric load is studied. Finally, it is shown how the free edge stresses due to extension, bending and twisting loads can be controlled by applying appropriate actuation potential.