Earnings · $BRK.B
Berkshire Hathaway Operating Profit Falls 5.8% as Insurance Underwriting Slumps and Buybacks Reach $9.6 Billion
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Third-quarter operating earnings were $12.7 billion; BNSF, energy and manufacturing rose while GEICO-driven underwriting profit dropped 43%.
By Emmanuel Cruz ·
Berkshire Hathaway reported lower third-quarter operating earnings on Saturday, Nov. 7, as a sharp drop in insurance underwriting profit outweighed gains at its railroad, energy and manufacturing businesses, according to the company's filing [1]. The conglomerate also spent about $9.6 billion buying back its own shares during the quarter [1].
Operating earnings were $12.705 billion, down from $13.485 billion a year earlier, a decline of about 5.8% [1]. For the first nine months of the year, operating earnings were $37.034 billion, up from $34.286 billion in the same period of 2025 [1]. Net earnings attributable to shareholders were $22.112 billion, compared with $30.796 billion a year earlier [1]. The difference reflects investment gains, which were $9.407 billion in the quarter versus $17.311 billion a year ago and consist mostly of unrealized changes in the value of equity holdings, the company said [1].
Insurance was the weak spot. Underwriting earnings fell to $1.352 billion from $2.369 billion, a decline of about 43% [1]. Insurance Journal reported that GEICO's losses and underwriting expenses rose, and Investing.com reported that GEICO's claims losses increased 8.5% and its underwriting expenses 17% [2][3]. Insurance investment income fell to $2.734 billion from $3.181 billion, which Insurance Journal attributed mainly to lower short-term interest rates [1][2]. Cathy Seifert of CFRA Research called the underwriting slump "a pretty significant deterioration" [2].
Other segments were stronger. BNSF earned $1.729 billion, up from $1.449 billion, and Berkshire Hathaway Energy earned $1.612 billion, up from $1.489 billion [1]. Manufacturing, service and retailing rose to $4.042 billion from $3.616 billion, while the "other" category slipped to $1.236 billion from $1.381 billion [1]. Insurance float, the premiums held before claims are paid, stood at about $178.5 billion at Sept. 30, up about $2.1 billion from the end of 2025 [1].
Capital allocation drew attention. Berkshire's third-quarter repurchases of about $9.6 billion brought the nine-month total to about $14.4 billion [1]. Investing.com said the quarter was the largest of the year, compared with $4.5 billion in the second quarter and $234 million in the first [3]. Insurance Journal reported that buybacks resumed this year after Chief Executive Greg Abel judged the shares to be trading below intrinsic value [2].
Cash, cash equivalents and short-term Treasury bills rose to a record $377.4 billion at the end of September from $365.5 billion at the end of June, according to Investing.com [3]. Insurance Journal reported that the figure would be about $357 billion after subtracting $20.5 billion of unsettled Treasury bill purchases, and that Berkshire was a net seller of equities by $426 million in the quarter [2]. The same report listed deals under Abel including a $6.8 billion acquisition of Taylor Morrison Home Corp., a $10 billion investment in Alphabet and a $930 million investment in Bending Spoons [2].
The release does not report operating earnings per share, and it cautioned that quarterly investment gains or losses are of limited meaning, which is why the operating figure is the more useful gauge of the businesses [1]. The results show a company where cyclical businesses held up while a core insurance unit weakened, and where a record cash pile coexists with a faster buyback pace.
Investors are likely to look next for any updates on GEICO's cost trends, how Abel balances repurchases against acquisitions, and how large the cash balance remains as Treasury bill yields move. The filing itself is the primary document for checking each segment figure.
Sources:
[1] Berkshire Hathaway, "BERKSHIRE HATHAWAY INC - Form 8-K - FY2026 (Exhibit 99.1, third quarter 2026 results)", November 7, 2026. https://www.sec.gov/Archives/edgar/data/0001067983/000119312526452530/brka-ex99_1.htm
[2] Insurance Journal, "Berkshire Hathaway Boosts Buybacks as Operating Income Slips", November 9, 2026. https://www.insurancejournal.com/news/national/2026/11/09/891933.htm
[3] Investing.com via Yahoo Finance UK, "Berkshire Hathaway steps up buybacks as operating profit falls", November 7, 2026. https://uk.finance.yahoo.com/news/berkshire-hathaway-steps-buybacks-operating-134809102.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.