Berkshire Hathaway's Q3 operating earnings fall 5.8% as buybacks increase
Berkshire Hathaway (BRK.B) said on Saturday that its operating earnings fell 5.8% to $12.7B in the third quarter, while it spent $9.6B buying back its own stock.
Insurance caused the drop. Each of Berkshire's three insurance groups made less from underwriting than a year earlier, the company says in its quarterly report.
At GEICO, its car insurer, claims took 76.6% of premiums, up from 71.5%. Accidents were more frequent and claims cost more, while the average premium per policy fell.
Investment income in the insurance business fell 14%. Lower short-term interest rates cut what Berkshire earns on its Treasury bills.
The rest of the group grew. Earnings at the BNSF railroad grew 19% on higher shipping volumes. The manufacturing, service and retailing businesses grew 12%, led by industrial products.
| Q3 2025 | Q3 2026 | Change | |
|---|---|---|---|
| Revenue | $95.0B | $105.6B | +11% |
| Operating earnings | $13.5B | $12.7B | -5.8% |
| Insurance underwriting | $2.37B | $1.35B | -43% |
| BNSF railroad | $1.45B | $1.73B | +19% |
| Net earnings | $30.8B | $22.1B | -28% |
Net earnings fell 28%, mostly because gains on Berkshire's stock portfolio were smaller than a year ago. The company calls those gains "usually meaningless" for judging a single quarter.
Over the first nine months, operating earnings grew 8.0% to $37.0B. A swing from currency losses to gains on Berkshire's foreign-currency debt and growth at its industrial and service businesses outweighed weaker insurance results.
The $9.6B of buybacks was more than double the second quarter's $4.5B.
Berkshire buys back stock when Chief Executive Officer Greg Abel judges the price to be below the company's intrinsic value.
It paid about $500 on average for each Class B share. The stock closed at $570.89 on Friday.
Berkshire's cash and Treasury bills fell from $359.2B at the end of June to $352.3B. In July, it paid $6.8B in cash for homebuilder Taylor Morrison (TMHC).
Bloomberg counts the pile at $377.4B, up from the second quarter. Its figure includes the cash of the railroad and utilities and $20.5B of Treasury bills Berkshire bought in September but paid for in October.
In the stock market, Berkshire sold about $2.8B of shares in the quarter and bought about $2.4B, based on its cash flow statements.
Its list of U.S. stock holdings at the end of September is due by November 16. It will show whether Berkshire changed its stake in Alphabet (GOOGL) during the quarter.
Sources & Further Reading
- "Berkshire Hathaway Q3 2026 Earnings Release." Berkshire Hathaway. November 7, 2026.
- "Berkshire Hathaway Q3 2026 Quarterly Report (Form 10-Q)." Berkshire Hathaway. November 7, 2026.
- "Berkshire Hathaway's Operating Earnings Fall, Buybacks Rise." Bloomberg. November 7, 2026.
- "Berkshire Hathaway Q2 2026 Quarterly Report (Form 10-Q)." Berkshire Hathaway. August 8, 2026.
- "Berkshire shares surge as Wall Street swoons amid AI fears." CNBC. November 7, 2026.
This article was drafted with the help of AI. Kris Gunnars fact-checked, edited and published the article and is responsible for its accuracy and quality. How we use AI
