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 5.8% to $12.7 billion. The decline was primarily driven by a 43% drop in insurance underwriting, including a 45% pretax profit slump at GEICO as the insurer lowered premiums to regain customers. Conversely, the conglomerate saw growth in its railroad and energy sectors, with BNSF profits rising 19.3% and Berkshire Hathaway Energy earnings increasing 8.3%.

Under the leadership of Greg Abel, who became CEO on January 1, 2026, the company accelerated its capital return program, repurchasing $9.6 billion of its own shares in the third quarter—an all-time high for a single quarter—followed by another $2 billion in October. Abel also pivoted the firm 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 Taylor Morrison Home Corp. and a $9.4 billion purchase of Occidental Petroleum's chemicals business.

Despite these expenditures, Berkshire maintained a massive cash reserve, with reports placing the total between $356.9 billion and $377.4 billion by the end of September. The period also marked a significant leadership transition as Howard Buffett succeeded his father as chairman in September. The company's stock has recently reached record highs, outperforming the S&P 500 as investors shift toward its stable holdings in energy and railroads.