Key Highlights
- Operating earnings reached $11.35B for Q1, marking an ~18% increase from the prior year, slightly below the $11.56B consensus estimate
- Cash reserves climbed to an unprecedented $397.4B, rising from $373B at the close of 2025
- Net income surged to $10.1B compared to $4.6B in the same quarter last year
- Insurance underwriting profits jumped 28% to $1.7B, while Geico experienced a 34% decline in earnings
- Greg Abel delivered his inaugural quarterly results as CEO following his January 2026 appointment after Warren Buffett
Berkshire Hathaway delivered operating earnings of $11.35 billion for the first quarter of 2026, representing an increase of nearly 18% compared to the corresponding period in 2025. The performance came in marginally below Wall Street expectations of $11.56 billion, according to FactSet consensus data.
The conglomerate’s net income totaled approximately $10.1 billion for the three-month period — representing more than twice the $4.6 billion figure from Q1 2025.
Shares of BRK.B settled at approximately $487 on Friday, hovering near the average buyback price of $486.92 per share executed during the quarter.
Berkshire Hathaway Inc., BRK-B
The figure commanding the most attention remains the cash position. Berkshire’s cash, cash equivalents, and short-term investments reached an all-time high of $397.4 billion at the end of March, advancing from $373 billion at the conclusion of 2025.
This represents substantial capital available for deployment.
Insurance Operations Fuel Performance Gains
The insurance underwriting division served as the primary catalyst for the earnings improvement. This segment produced $1.7 billion in profits, climbing 29% year-over-year, primarily due to the absence of significant catastrophe losses during the period.
The insurance segment did face headwinds in certain areas. Geico, the company’s prominent auto insurance operation, experienced a 34% earnings decline. Insurance investment income similarly decreased 7% to $2.7 billion, affected by declining interest rates that pressured interest-based returns.
BNSF, the railroad division under Berkshire’s umbrella, delivered $1.4 billion in earnings — advancing 13% from the prior year on stronger revenue generation and improved operational performance.
The manufacturing, service, and retail segments contributed $3.2 billion, representing a 5% year-over-year improvement. Berkshire Hathaway Energy recorded $1.1 billion in profits, rising 2%, supported by natural gas pipeline operations and federal tax incentive benefits.
Abel Begins Tenure as Chief Executive
This marked Greg Abel’s inaugural quarterly earnings release as chief executive. He assumed the position in early 2026, taking over from Warren Buffett, and authored the company’s annual shareholder communication in February.
Abel appeared on stage Saturday at Berkshire’s annual shareholder gathering in Omaha — the legendary event frequently dubbed “Woodstock for Capitalists.”
Buffett, currently 95 years old, had evolved into a cultural phenomenon at the gathering, attracting massive crowds and associating his reputation with brands including Fruit of the Loom and Squishmallow.
Throughout the first quarter, Berkshire executed $234.2 million in share repurchases — marking the company’s first buyback transactions since May 2024. This activity encompassed 33 Class A shares at an average cost of $729,701 and 431,462 Class B shares at approximately $486.92 per share.
The holding company also divested a net $8.1 billion in equity positions during the three-month span. Berkshire’s top five equity positions — Apple, American Express, Bank of America, Coca-Cola, and Chevron — represented 61% of the aggregate equity portfolio at the end of March, declining from 65% at 2025 year-end.
Berkshire’s operating earnings for Q1 2025 had totaled $9.6 billion, while Q4 2025 witnessed a substantial 30% year-over-year contraction to $10.2 billion, making the Q1 2026 performance a notable turnaround primarily attributable to the insurance division’s strength.
