Berkshire Hathaway Reports Mixed Earnings and Record Share Buybacks

Berkshire Hathaway reported a 28% decline in third-quarter net income to $22.11 billion, with operating earnings falling approximately 6% to $12.7 billion. The dip was primarily driven by a 43% drop in insurance underwriting, specifically at GEICO, where pretax profits fell 45% as the company lowered premiums to regain customers. These losses were partially offset by growth in the BNSF railroad unit, which saw profits rise 19.3%, and Berkshire Hathaway Energy, which grew 8.3%.

Under the leadership of Greg Abel, who became CEO on January 1, 2026, the conglomerate accelerated its capital return program. Berkshire spent a record $9.6 billion on share repurchases in the third quarter—the highest for any single quarter in company history—followed by an additional $2 billion in October. Abel authorized these buybacks after determining the stock was trading below its intrinsic value.

Abel also pivoted the firm's strategy toward artificial intelligence, investing $10 billion in Alphabet Inc. and $930 million in Bending Spoons SpA. Other strategic expansions included the $6.8 billion acquisition of homebuilder Taylor Morrison Home Corp. and the $9.4 billion purchase of Occidental Petroleum's chemicals business. Despite these expenditures, the company maintained a massive cash reserve, with reports placing the total between $356.9 billion and $377.4 billion by the end of September.

The quarter marked a significant leadership transition as Warren Buffett transitioned to chairman emeritus. His son, Howard Buffett, succeeded him as chairman in September.