Berkshire Hathaway’s operating earnings fell 5.8% to $12.7 billion in the third quarter of 2026 as insurance underwriting profit dropped 43%. Share repurchases more than doubled to about $9.6 billion, and cash and Treasury bills stood at about $377 billion at the end of September.
Global Economy Charts Research Desk | November 8, 2026
Key indicators
| Indicator | Reading | Context |
|---|---|---|
| Operating earnings | $12.7bn | Q3 2025: $13.5bn (-5.8%) |
| Net earnings | $22.1bn | Q3 2025: $30.8bn; includes $9.4bn investment gains |
| Insurance underwriting | $1.35bn | Q3 2025: $2.37bn (-42.9%) |
| Share repurchases | About $9.6bn | Q2 2026: about $4.5bn; none in 2025 |
| Cash and Treasury bills | About $377bn | Gross balance-sheet total; Berkshire’s own measure $352bn |
This was the first quarterly report since Warren Buffett became chairman emeritus on 18 September, with Howard Buffett elected chairman and Greg Abel continuing as chief executive. Net earnings fell 28% because investment gains, which Berkshire says are often meaningless for quarterly analysis, were smaller than a year earlier. Over the first nine months, operating earnings rose to $37.0 billion from $34.3 billion.
1. Underwriting weakness at GEICO
Pre-tax underwriting profit at GEICO fell to $982 million from $1.77 billion, reflecting more frequent and more costly claims and a lower average premium per policy, according to the 10-Q. Primary insurance earned $119 million, against $506 million, and reinsurance $582 million, against $884 million. Investment income in the insurance unit fell 14% to $2.7 billion as short-term interest rates declined. Float rose to about $178.5 billion.
2. Railroad, energy and industrial gains
BNSF’s earnings rose 19% to $1.73 billion on higher volumes and better efficiency, partly offset by fuel costs; railroad revenue was $6.9 billion. Berkshire Hathaway Energy earned $1.61 billion, up 8%. Manufacturing, service and retailing rose 12% to $4.04 billion, led by industrial products, and now includes OxyChem, bought for about $9.4 billion in January, and homebuilder Taylor Morrison, acquired in July.
3. Buybacks accelerate under Abel
Berkshire bought back about $9.6 billion of its own shares in the quarter and $14.4 billion in the first nine months, after making no repurchases at all in 2025. In September alone it bought 1,983 Class A shares at an average of about $758,333. Class A equivalent shares outstanding fell to 1,418,900 from 1,431,693 at the end of June. In stocks, cash-flow data imply a small net sale of about $0.4 billion in the quarter.
4. Two ways to count the cash pile
Adding the balance-sheet lines gives about $377 billion of cash and Treasury bills, up from $366 billion in June but below the $397 billion peak in March. Berkshire’s own figure, which covers insurance and other businesses and nets off Treasury bill purchases that settled in October, was $352 billion, down from $359 billion. The gap explains why some reports said the pile grew and others said it shrank.
Scenarios to watch
If short-term interest rates keep falling, investment income on the Treasury bill portfolio will decline further, putting more weight on operating businesses. If GEICO’s claims trends persist, underwriting may remain below last year’s levels. The pace of buybacks and any further large acquisitions are the main signals of how Greg Abel plans to deploy capital. These are scenarios for monitoring, not forecasts or investment advice.
Sources and methodology
Berkshire Hathaway, third-quarter 2026 earnings release, 7 November 2026; Berkshire Hathaway, Form 10-Q for the quarter ended 30 September 2026; Berkshire Hathaway, Form 10-Q, second quarter 2026; Berkshire Hathaway, chairman announcement, 18 September 2026; Reuters, 7 November 2026; Forbes, 7 November 2026. Reported figures are distinguished from forecasts and GEC calculations. Charts use the values and units shown; scales start at zero except where negative values or index thresholds require otherwise. Interpretive sections are GEC analysis, not company or central-bank forecasts.
Thumbnail: AI-generated editorial illustration. Figures are rounded for readability; some releases may be preliminary or subject to revision.
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