Berkshire Hathaway Reports Lower Profits Amid Record Share Buybacks

Berkshire Hathaway reported a 28% decline in third-quarter net income to $22.11 billion, driven by shrinking investment gains and a slump in insurance profits. Operating earnings fell approximately 6% to $12.7 billion, largely due to a 43% drop in insurance underwriting caused by increased losses and expenses at Geico. These losses were partially offset by growth in the manufacturing, energy, and railroad sectors, with BNSF Railway profit increasing by 19.3%.

Under the leadership of CEO Greg Abel, who assumed the role on January 1, 2026, the conglomerate accelerated its capital return program, repurchasing $9.6 billion of its own shares—an all-time high for a single quarter. The company continued a long-term trend as a net seller of equity securities, selling $426 million more than it purchased during the quarter. Cash and Treasury bill holdings remained substantial, with reports placing the total between $357 billion and $377.4 billion by the end of September.

Strategic shifts under the new administration include a pivot toward artificial intelligence, with a $10 billion investment in Alphabet Inc. and $930 million in Bending Spoons SpA. The company also expanded its physical portfolio by acquiring homebuilder Taylor Morrison for $6.8 billion and Occidental Petroleum's chemicals business for $9.4 billion. The quarter also marked a leadership transition as Howard Graham Buffett succeeded his father, Warren Buffett, as chairman in September.